Haitong Securities International·2025-11-06 14:41Investment Rating - The report does not explicitly state an investment rating for Galaxy Entertainment, but it provides detailed financial performance metrics that suggest a positive outlook for the company [1][7]. Core Insights - Galaxy Entertainment reported a net revenue of HKD 12.16 billion for Q3 2025, representing a year-on-year increase of 14.0% and a quarter-on-quarter increase of 1.0% [2][8]. - The adjusted EBITDA for the same period reached HKD 3.34 billion, up 13.6% year-on-year, with an adjusted EBITDA margin of 27.5%, slightly down by 0.1 percentage points year-on-year [4][11]. - The company's total betting amount increased significantly, reaching HKD 127.84 billion, a 24.5% year-on-year increase, driven by a substantial rise in VIP betting [3][9]. - The gaming revenue specifically saw an 18.4% year-on-year growth, with contributions from both gaming and non-gaming sectors [2][8]. - The market share of Galaxy Entertainment stood at 20.2% in Q3 2025, stable compared to the previous quarter and up from 18.8% in Q3 2024 [5][12]. Financial Performance Summary - For Q3 2025, the net revenue was HKD 12.16 billion, with gaming revenue contributing HKD 9.71 billion and non-gaming revenue contributing HKD 1.73 billion [2][8]. - The adjusted EBITDA margin for the quarter was 27.5%, with a total adjusted EBITDA of HKD 3.34 billion [4][11]. - The total revenue for the company reached HKD 35.41 billion year-to-date, reflecting a 10.2% year-on-year increase [1][7]. Betting and Revenue Breakdown - The total betting amount for the company was HKD 127.84 billion, with VIP, mass market, and slot machine betting amounts at HKD 65.0 billion, HKD 35.41 billion, and HKD 27.42 billion respectively [3][9]. - The win rates for VIP, mass market, and slot machines were 3.1%, 26.7%, and 2.7% respectively, indicating a relatively high overall win rate [3][9]. Strategic Developments - The company has engaged in several strategic partnerships and events to enhance its competitive position, including collaborations with UFC and Tencent Music [5][12]. - Major entertainment events hosted by the company contributed positively to its performance, including concerts by popular artists [2][8].