Industry analysts believe Macau’s Galaxy Entertainment Group (GEG) is likely to further increase its dividend payouts in the future after the company announced an improved interim dividend of HK$0.70 this week – up from the HK$0.50 final dividend it paid to shareholders in June.
The commentary followed GEG’s 2Q25 earnings call in which it confirmed the HK$0.70 interim dividend represented around 60% of profits for the first six months of 2025.
According to a note from investment bank JP Morgan, management stated during the call that it would review the situation at year-end and in the future to see if there is room for further and sustainable dividend increases, which the bank stated “suggests to us that 60% is not the ceiling, especially into 2027/28, when its capex for [Galaxy Macau Phase 4] will taper off.”
Seaport Research Partners analyst Vitaly Umansky offered a similar view, stating, “There is strong potential for the dividend to continue to rise over the next few years as operating cash flow improves.”
Umansky pointed out that GEG remains “cash rich” with over HK$30 billion in net cash at end-Q2.
Galaxy also has “ample resources to pursue its Macau investments and increase dividends, along with any opportunity in Thailand (should it rematerialize),” he said.
GEG’s strong 2Q25 results were aided by mass hold rate recovering towards normalized levels after lower hold in recent quarters, while the company excelled in the upper echelons of the premium mass segment thanks in part to the recent soft launch of the uber-luxury hotel Capella.
The company reportedly told analysts that the promotional environment in Macau had held steady in recent months. Umansky outlined his expectation that while there will be material increases in required player reinvestment going forward given the competitive market dynamics, this should stabilize somewhat in Q2.
He added, “Galaxy’s competitive advantage at Galaxy Macau remains its entertainment and event offerings, scale, service and product offering. Large music performances drive outsized business in Macau and Galaxy benefits from its Galaxy Macau Arena.
“With a re-focused marketing effort and smart digital tables now up and running, Galaxy is well positioned to maintain share levels in the mid to high 19% range and maybe even above 20% consistently.”
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