Leading Macao casino share prices are falling or stagnating after operators posted disappointing first-quarter earnings.
Galaxy Entertainment Group’s pre-audit report revealed an 11% net revenue year-on-year increase to just under $1.6 billion, the Japanese-language media outlet Macau Shimbun reported. But the firm also saw its revenues drop by 10% from Q4 FY2025.
Gross gaming revenue rose year-on-year, but the firm also experienced a 9% quarter-on-quarter fall.
While the firm reported year-on-year rises in mass gaming, VIP room, and slots revenues, these also fell in the past quarter. Most notable were VIP revenues, which fell 25% since the start of the calendar year.
Galaxy’s net liabilities were $345 million, leaving the operator with pre-audit cash and liquid investments worth around $4.7 billion.
The firm is currently building a range of new dining, lifestyle, leisure, and retail facilities at its Galaxy Macau resort. This project will see it open new casino facilities and add a new 1,350-room hotel.
It has also embarked on a renovation of its StarWorld Hotel on the Macao Peninsula. The work includes a remodeling of two casino floors. The company said its StarWorld work would wrap up by the end of the first quarter of 2027.
Macao Casino Earnings: SJM Holdings Revenues Drop 21%
Earlier this month, the same media outlet reported that SJM Holdings, another Hong Kong-listed firm with a Macao casino management concession, also posted quarter-on-quarter revenue falls.
SJM operates a range of casino facilities under the Lisboa brand.
Company documents reveal the operator’s net revenues for the first quarter of this year were $754 million, down 21.1% year-on-year. Gross gambling revenue also fell by almost 19%.
Profits attributable to parent company shareholders fell from a surplus of $4 million to a deficit of almost $8 million.
The company’s share of Macao’s total casino revenue fell by 3.9 percentage points to just under 10%.
Rival operator MGM China earlier reported a 10% year-on-year rise in revenues in Q1, along with a drop in VIP spending.
Gaming shares are also down elsewhere in the world, despite a global stock market boom.
While sky-high tech shares drove the S&P 500 Index to new record highs, popular gambling-focused exchange-traded funds fell by over 3%.
Back in Hong Kong, MGM China share prices dropped by 1.6% on May 12, while Wynn Macau fell 0.7%.
