Galaxy Entertainment Group has seen its Macau market share move above 20% during the first month of Q4, having seen share slip to 18.7% in the September quarter on lower hold and volumes, according to Seaport Research Partners.
In a note, following publication of GEG’s 3Q24 financial results on Thursday, Seaport’s Vitaly Umansky noted that the company endured a poor September which ultimately saw it lose 40bps of share quarter-on-quarter. Q3 was, he explained, typified by poor hold in the VIP segment and much higher player reinvestment as the company battled against lower turnover.
However, “While Galaxy experienced a poor September, Q4 was off to a very strong start with Galaxy achieving over 20% market share,” Umansky said in reference to management guidance. “Golden Week in particular was strong in the market (and Galaxy in particular), with mass drop up over 50% year-on-year and property visitation at Galaxy Macau nearly doubling.”
Player reinvestment also increased by an estimated 200bps quarter-on-quarter as a percentage of mass table GGR, with Seaport pointing to lower average daily turnover in September due to players playing less and larger players postponing their trips until October Golden Week.
This, Umansky added, should be temporary with GEG management stating that although player reinvestment has risen in Macau – especially at the upper end of premium mass – the trend has now stabilized.
“Galaxy’s competitive advantage at Galaxy Macau remains its entertainment and event offerings, scale, service and product offering,” Umansky wrote. “Large music performances drive outsized business with the Q4 schedule supporting Galaxy Macau share gains (the Andy Lau series during Golden Week was particularly impactful).
“With a re-focused marketing effort and smart digital tables up and running before Chinese New Year, we expect share gains to continue at Galaxy Macau over the next few quarters and into 2025.”
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