Zhi Tong Cai Jing·2025-11-07 02:13Core Viewpoint - CICC has adjusted Galaxy Entertainment's EBITDA forecasts for 2025 and 2026 down by 1% and 3% to HKD 14.031 billion and HKD 14.923 billion respectively, due to increased operating expenses [1] Group 1: Financial Performance - Galaxy Entertainment reported Q3 2025 revenue of HKD 12.163 billion, a year-on-year increase of 14% and a quarter-on-quarter increase of 1%, recovering to 96% of Q3 2019 levels [2] - The company's adjusted EBITDA for Q3 2025 was HKD 3.341 billion, reflecting a year-on-year increase of 14% but a quarter-on-quarter decrease of 6%, recovering to 81% of Q3 2019 levels [2] - The performance was in line with market expectations, with the adjusted EBITDA closely matching the consensus estimate of HKD 3.321 billion [2] Group 2: Market Position and Strategy - Galaxy aims to achieve a total gaming revenue market share of 20-22% [3] - The company experienced strong market performance in October 2025, benefiting from higher VIP win rates, with improving demand noted in the last weeks of October, expected to continue into November [3] - Despite a 300 basis point decline in profit margins due to one-time marketing expenses during the summer, daily fixed operating costs remained stable compared to Q2 2025 [3] Group 3: Future Plans and Developments - Galaxy plans to relocate some gaming tables from Galaxy Macau to the StarWorld Hotel, anticipating demand from existing satellite gaming customers after the satellite casino closes at the end of 2025 [4] - The company expects Phase 4 to be completed by 2027, with Broadway potentially serving as future land reserves for expansion projects [4] - Galaxy remains interested in investing in Thailand despite delays in legalizing gambling [4]