Macau’s recovery is no longer just about volumes returning — it’s about who is driving the growth.

In 4Q25, Galaxy Entertainment Group (GEG) reported US$1.79 billion in gross gaming revenue (GGR), up 27% year-on-year, with performance propelled by premium mass and super-premium mass segments.

This is not a cyclical rebound story.
It reflects a structural evolution in Macau’s earnings engine.

Growth Across Every Segment — With Clear Focus

GEG Chairman Francis Lui commented on the company’s 2025 performance:

“We continued to drive growth across every segment of the business, with a particular focus in the premium mass and the super-premium mass segment.”

The emphasis is deliberate. While total GGR growth matters, the composition of that growth matters more.

Premium mass today delivers:

• Higher margins than VIP

• Lower credit exposure

• Greater operational control

• Stronger non-gaming cross-spend

In short, it’s a cleaner earnings stream.

Capella: The Super-Premium Catalyst

A major contributor to Galaxy’s momentum is the launch of Capella at Galaxy Macau.

Lui noted:

“Capella soft launched in May 2025 and officially opened on 10 February 2026. With its ultra-luxury room product, Capella has allowed us to capture the super-premium mass segment more effectively at scale, further reinforcing our leadership in this high-value market.”

This is strategically important.

Super-premium mass players expect:

• Ultra-luxury accommodation

• Personalized service

• Privacy and exclusivity

• Seamless integrated resort experience

Capella strengthens Galaxy’s ability to monetize this segment at scale — effectively turning hospitality investment into gaming yield enhancement.

The Post-Junket Macau Model

Pre-2020 Macau was:

VIP-heavy → Junket-driven → Credit-dependent

Post-2023 Macau is increasingly:

Premium mass-focused → Direct marketing → Margin-optimized

Galaxy’s 27% YoY GGR growth aligns perfectly with this transition.

Instead of chasing volatile VIP turnover, operators are deepening relationships with high-value direct customers — a model that regulators prefer and investors reward.

Balance Sheet Strength = Strategic Optionality

Lui emphasized financial discipline:

“Our balance sheet remains healthy and liquid, with cash and liquid investments of HK$36.3 billion. This solid financial foundation, together with healthy cash flow from operations enables us to return capital to shareholders, fund our development pipeline, pursue international expansion opportunities and ensure that we have a strong balance sheet in the event of unforeseeable circumstances such as economic shocks.”

HK$36.3 billion in liquidity does more than provide comfort.

It enables:

• Dividend continuity

• Ongoing CapEx investment

• International IR bid optionality

• Defensive resilience against macro shocks

This reinforces Galaxy’s positioning as a conservative, well-capitalized operator in a still-recovering regional environment.

Unique Insight: Quality of Revenue > Speed of Recovery

Many market observers focus on how close Macau is to 2019 GGR levels.

But the deeper story is revenue quality.

If premium mass and super-premium mass continue expanding:

• EBITDA margins may outperform headline GGR recovery

• Earnings volatility decreases

• Credit risk declines

• Capital efficiency improves

Galaxy’s 4Q25 results suggest this structural pivot is gaining traction.

Regional Competitive Context

With Singapore’s IRs expanding, the Philippines growing Entertainment City, and Korea enhancing foreigner-only resorts, competition for premium Asian players is intensifying.

Galaxy’s strategy appears clear:

• Upgrade product

• Deepen premium segmentation

• Leverage ultra-luxury positioning

• Protect margins

Rather than compete on volume, compete on value.

Strategic Outlook

GEG’s 4Q25 performance signals three things:

1️⃣ Premium mass is now Macau’s primary earnings engine.
2️⃣ Super-premium positioning — amplified by Capella — is scaling effectively.
3️⃣ Strong liquidity provides both defensive resilience and expansion optionality.

The VIP era defined Macau’s past.

Premium mass may define its future.

And for Galaxy Entertainment Group, that future appears increasingly margin-focused, capital-disciplined, and strategically positioned for the next phase of growth.