Galaxy Earnings: Tepid Performance, but Taking Action to Strengthen Long-Term Competitiveness

Galaxy’s first-quarter results were slightly disappointing, with a market share loss in gross gaming revenue to 17.4% from 17.7% a quarter ago and with luck-adjusted EBITDA 2% below Bloomberg consensus. This was partly due to a temporary disruption of customer traffic in January and early February, attributable to Galaxy Macau’s gaming floor reconfigurations. On a positive note, management is seeing improvements in quarter-to-date performance, with the GGR market share rising above the levels of the past two quarters and mass volume hitting 120% of its 2019 level during the May Golden Week, up from 105% in the first quarter. We are encouraged that Galaxy has taken strategic action to regain market share by rolling out more products and expanding the sales and hosting teams.