Galaxy Entertainment Group was Macau’s biggest market share gainer in the June 2024 quarter and claimed even more through the month of July, investment bank JP Morgan said Thursday.
According to a note following release of GEG’s 2Q24 financial results, which saw the company report a 7.4% sequential increase in gross gaming revenue to HK$10.3 billion (US$1.32 billion) and 12.0% increase in Adjusted EBITDA to HK$3.18 billion (US$408 million) – market share jumped from 17.3% in Q1 to 18.9% in Q2, including gains in both mass and VIP.
However, JP Morgan analysts said they estimate share edged up further to around 19.5% in 3Q24 to date, “which should serve as some cushion for industry-wide uncertainty amid a frustratingly poor macro/consumption backdrop.”
The improvement comes on the back of the recent opening of new gaming space and the completion of upgrade works at Galaxy Macau, although the company’s market share still lags the 21% share it enjoyed in 2019. Sands China continues to lead the way in Macau with market share of around 25% in 2Q24.
JP Morgan said GEG exceeded wider market performance in Q2, with its mass GGR up 7% versus flat industry-wide growth and VIP GGR up 20% versus industry growth of between 15% and 20%.
“We upgrade Galaxy from Neutral to OverWeight following its sizable underperformance year-to-date, with a June 2025 price target of HK$43 that suggests 45%+ potential upside,” the analysts said.
“We admit investment sentiment for Macau remains extremely bearish, but we feel Galaxy can offer something for both long-only and hedge-fund investors, especially at a price.
“Galaxy is now one of our two top picks in Macau, alongside MGM China.”
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