Continue Working Closely with Macau Community to Control COVID-19

Q2 2021 Group Adjusted EBITDA of $1.1 billion Grew 32% Quarter-on-Quarter and Improved vs Q2 2020�s $1.4 Billion Loss

Continue Effectively Controlling Costs

Continue Investing in Macau�s Future with Cotai Phases 3 & 4

Remains Financially Healthy

HONG KONG--(BUSINESS WIRE)--Galaxy Entertainment Group (�GEG�, �Company� or the �Group�) (HKEx stock code: 27) today reported results for the three month and six month periods ended 30 June 2021. (All amounts are expressed in Hong Kong dollars unless otherwise stated)

LETTER FROM THE CHAIRMAN OF GALAXY ENTERTAINMENT GROUP

I appreciate the opportunity to update you on GEG�s most recent activities and financial results for the second quarter and first half of 2021. Macau continues to gradually recover and effectively navigate through the pandemic. The Macau market experienced its fourth consecutive quarter of gross gaming revenue (�GGR�) growth despite sporadic outbreaks of COVID-19 in Mainland and, most recently, in Macau. We are pleased to report that the primary focus of the Macau Government as well as GEG continues to be the health and safety of the public as well as social and economic stability.

In early August 2021, Macau reported four positive cases of COVID-19. We are pleased to report that the Macau Government acted promptly and decisively by testing the Macau community of over 700,000 for COVID-19 within three days, which is a remarkable achievement. Thankfully, the results of the mass screening were all negative. We would also like to acknowledge the Macau community�s cooperation in this important process which ensured swift execution of this monumental task. In addition, we would like to thank the Central Government who arranged for 300 healthcare personnel from the Mainland to assist in this critical effort, among others. Following this testing, the validity period of a negative test has been extended from 12 hours to 48 hours for individuals crossing the Guangdong-Macau border. GEG continues to support the Macau Government�s efforts including, among others, providing on-site vaccination facilities and education programs to actively encourage our staff and their family members to support Macau�s vaccination efforts to achieve herd immunity as well as on site COVID-19 testing facilities. Our in-house, on-site vaccination program has encouraged over 12,000 team members and their families to be vaccinated or registered to receive a vaccine.

Moving onto our Q2 2021 performance, Group Net Revenue of $5.6 billion improved relative to $1.2 billion in Q2 2020 and $5.1 billion in Q1 2021. Group Adjusted EBITDA of $1.1 billion also grew vs the $1.4 billion loss in Q2 2020 and was up 32% quarter-on-quarter. We are also pleased to report that our non-gaming performance improved in Q2 2021 due to a strong performance in retail which bodes well for the overall recovery prospects for Macau. Further, our performance was also supported by continued effective cost controls measures across the Group. Our balance sheet remains liquid and healthy. As of 30 June 2021, cash and liquid investments were $43.0 billion and net cash was $31.6 billion. Total debt was $11.4 billion at 30 June 2021, including $10.9 billion associated with our treasury yield enhancement program and $0.5 billion of core debt. This provides us with valuable flexibility in managing operations and supporting our development initiatives. Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend.

Moving on to our development update beginning with Cotai Phases 3 and 4 where we continue to invest in the future of Macau. We were pleased to announce in March 2021 the introduction of the legendary Raffles at Galaxy Macau which will feature an approximate 450 all-suite tower and is targeted to open in early 2022. We intend to follow this with the opening of the Galaxy International Convention Center and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets. And, finally, we are proceeding with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai. As you can see, we remain highly confident about the future of Macau where Cotai Phases 3 and 4 will support Macau�s vision of becoming a World Centre of Tourism and Leisure.

Regarding our development plan in Hengqin, we are awaiting updates from the government and would welcome the opportunity to contribute to the evolving role of Hengqin in Macau�s future. In addition, we are expanding our focus beyond Hengqin and Macau to potentially include opportunities within the rapidly expanding Greater Bay Area. We, along with Monte-Carlo SBM from the Principality of Monaco remain interested in the long term prospects of Japan and are confident that they will successfully navigate through the COVID-19 pandemic.

We are very pleased to report that TripAdvisor recently announced that The Ritz-Carlton, Macau at Galaxy Macau� was awarded the highest honor - Best of the Best Award, ranking No. 1 in the Top 25 Hotels in China and was also ranked No.14 in the Top 25 Hotels Worldwide.

This year also marks the 100^th anniversary of the Communist Party of China (CPC). The CPC has successfully guided China on a path of sustainable development, having achieved admirable success that has earned global respect. GEG would like to deliver our congratulations to our nation. Unfortunately, Henan Province recently experienced a natural disaster in July. We wish a speedy recovery to all those affected by this tragedy and GEG contributed MOP10 million to support the emergency response and relief efforts in Henan Province.

Finally, I would like to acknowledge the efforts of the health and emergency personnel who have worked so hard to ensure the safety of Macau community. I would also like to thank our staff for being so supportive of our Company during these challenging times. Our future remains very bright!

Dr. Lui Che Woo

GBM, MBE, JP, LLD, DSSc, DBA

Chairman

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Market Overview

Macau market experienced its fourth consecutive quarter of GGR growth in Q2 2021 despite sporadic outbreaks of COVID-19 in Mainland and, most recently, in Macau. The primary focus of the Macau Government as well as GEG continues to be the health and safety of the public as well as social and economic stability. Based on DICJ reporting, Macau�s GGR for Q2 2021 was $24.6 billion, up 685% year-on-year and up 7% quarter-on-quarter.

The IVS was progressively reinstated through the third quarter of 2020 but border entry restrictions for international and Hong Kong tourists remained in place impacting visitor arrivals. In Q2 2021, visitor arrivals to Macau were 2.2 million Vs 50,000 visitors in Q2 2020 and up 26% quarter-on-quarter. Mainland visitor arrivals were 2.0 million Vs 46,000 visitors in Q2 2020 and up 28% quarter-on-quarter. In Q2 2021, overnight visitors were 1.1 million Vs 25,000 visitors in Q2 2020 and up 24% quarter-on-quarter.

We look forward to the easing of border controls for Hong Kong and international tourists. We would also welcome the progressively reinstatement of the electronic IVS and the resumption of group tours to Macau.

Group Financial Results

1H 2021

The Group�s 1H 2021 results posted Net Revenue of $10.7 billion, up 71% year-on-year and Adjusted EBITDA was $2.0 billion Vs $(1.1) billion in 1H 2020. Net profit attributable to shareholders was $0.9 billion Vs $(2.9) billion in 1H 2020. Galaxy Macau��s Adjusted EBITDA was $1.7 billion Vs $(848) million in 1H 2020. StarWorld Macau�s Adjusted EBITDA was $305 million Vs $(202) million in 1H 2020. Broadway Macau��s Adjusted EBITDA was $(43) million Vs $(97) million in 1H 2020.

During 1H 2021, GEG experienced good luck in its gaming operation, which increased its Adjusted EBITDA by approximately $243 million. Normalized 1H 2021 Adjusted EBITDA was $1.7 billion, Vs $(1.2) billion in 1H 2020.

The Group�s total GGR on a management basis ¹ in 1H 2021 was $9.7 billion, up 62% year-on-year as total mass table GGR was $5.9 billion, up 100% year-on-year and total VIP GGR was $3.5 billion, up 26% year-on-year. Total electronic GGR was $333 million, up 27% year-on-year.

Q2 2021

In Q2 2021, the Group�s Net Revenue was $5.6 billion, Vs $1.2 billion in Q2 2020 and was up 9% quarter-on-quarter. Adjusted EBITDA was $1.1 billion Vs $(1.4) billion in Q2 2020 and $859 million in Q1 2021. Galaxy Macau��s Adjusted EBITDA was $924 million Vs $(1.2) billion in Q2 2020 and $764 million in Q1 2021. StarWorld Macau�s Adjusted EBITDA was $135 million Vs $(306) million in Q2 2020 and $170 million in Q1 2021. Broadway Macau��s Adjusted EBITDA was $(20) million Vs $(52) million in Q2 2020 and $(23) million in Q1 2021.

Latest twelve months Adjusted EBITDA was $2.1 billion, Vs $7.1 billion in Q2 2020 and $(444) million in Q1 2021.

During Q2 2021, GEG experienced good luck in its gaming operations which increased Adjusted EBITDA by approximately $74 million. Normalized Q2 2021 Adjusted EBITDA was $1.1 billion, Vs $(1.4) billion in Q2 2020 and $690 million in Q1 2021.

The Group�s total GGR on a management basis⁶ in Q2 2021 was $5.0 billion, Vs $485 million in Q2 2020 and $4.8 billion in Q1 2021. Total mass table GGR was $3.1 billion, Vs $138 million in Q2 2020 and $2.8 billion in Q1 2021. Total VIP GGR was $1.7 billion, Vs $315 million in Q2 2020 and $1.8 billion in Q1 2021. Total electronic GGR was $203 million, Vs $32 million in Q2 2020 and $130 million in Q1 2021.

Balance Sheet and Dividend

The Group�s balance sheet remains liquid and healthy. As of 30 June 2021, cash and liquid investments were $43.0 billion and net cash was $31.6 billion. Total debt was $11.4 billion as at 30 June 2021, including $10.9 billion associated with our treasury yield enhancement program and $0.5 billion of core debt. Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend.

Galaxy Macau�

Galaxy Macau� is the primary contributor to the Group�s revenue and earnings. Net Revenue in 1H 2021 was $7.2 billion, up 88% year-on-year. Adjusted EBITDA was $1.7 billion Vs $(848) million in 1H 2020.

Galaxy Macau� experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $213 million in 1H 2021. Normalized 1H 2021 Adjusted EBITDA was $1.5 billion, Vs $(933) million in 1H 2020.

Q2 2021 Adjusted EBITDA was $924 million Vs $(1.2) billion in Q2 2020 and $764 million in Q1 2021.

Galaxy Macau� experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $86 million in Q2 2021. Normalized Q2 2021 Adjusted EBITDA was $838 million, Vs $(1.2) billion in Q2 2020 and $637 million in Q1 2021.

The combined five hotels occupancy rate was 48% for 1H 2021 and 53% for Q2 2021.

StarWorld Macau

StarWorld Macau�s Net Revenue was $1.9 billion in 1H 2021, up 80% year-on-year. Adjusted EBITDA was $305 million Vs $(202) million in 1H 2020.

StarWorld Macau experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $30 million in 1H 2021. Normalized 1H 2021 Adjusted EBITDA was $275 million, Vs $(205) million in 1H 2020.

Q2 2021 Adjusted EBITDA was $135 million Vs $(306) million in Q2 2020 and $170 million in Q1 2021.

StarWorld Macau experienced bad luck in its gaming operations which decreased its Adjusted EBITDA by approximately $12 million in Q2 2021. Normalized Q2 2021 Adjusted EBITDA was $147 million, Vs $(297) million in Q2 2020 and $128 million in Q1 2021.

Hotel occupancy was 69% for 1H 2021 and 77% for Q2 2021.

Broadway Macau�

Broadway Macau� is a unique family friendly, street entertainment and food resort supported by Macau SMEs. The property�s Net Revenue was $29 million for 1H 2021 Vs $65 million for 1H 2020. Adjusted EBITDA was $(43) million for 1H 2021 Vs $(97) million in 1H 2020. There was no luck impact on Broadway Macau��s Adjusted EBITDA in 1H 2021.

Q2 2021 Adjusted EBITDA was $(20) million Vs $(52) million in Q2 2020 and $(23) million in Q1 2021. There was no luck impact on Broadway Macau��s Adjusted EBITDA in Q2 2021.

Hotel occupancy was 9% for 1H 2021 and was suspended in Q2 2021.

NIL represents tables closed during the period.

City Clubs

City Clubs contributed $30 million of Adjusted EBITDA to the Group�s earnings for 1H 2021, up 67% year-on-year. Q2 2021 Adjusted EBITDA was $20 million, Vs $2 million in Q2 2020 and $10 million in Q1 2021.

NIL represents tables closed during the period.

Construction Materials Division

Construction Materials Division (�CMD�) contributed Adjusted EBITDA of $445 million in 1H 2021, down 13% year-on-year. CMD delivered a solid performance in Q2 2021 with Adjusted EBITDA of $289 million, which was down 26% year-on-year and up 85% quarter-on-quarter. This is due primarily to solid results in Hong Kong and slag in the Mainland, despite increased competition for cement within the Mainland.

Development Update

Galaxy Macau� and StarWorld Macau

We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests.

Cotai � The Next Chapter

GEG is uniquely positioned for long term growth. We are proceeding with the development of Phases 3 & 4 and continue to review and refine plans to ensure a world-class optimal development. We see the premium market evolving with this segment preferring higher quality and more spacious rooms. Phases 3 & 4 combined will have approximately 3,000 high end and family rooms and villas, 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, F&B, retail and casinos, among others. We will try to maintain our development targets, however due to COVID-19, development timelines may be impacted. At this point we cannot quantify the impact but we will endeavor to maintain our schedule.

The Group was pleased to announce in March 2021 the signing of a collaboration agreement with Accor to introduce the renowned Raffles brand to Macau. We look forward to welcoming the iconic Raffles at Galaxy Macau through an exclusive 450 all-suite tower with a target opening in early 2022.

We intend to follow this with the opening of the Galaxy International Convention Center and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets. And, finally, we continue to proceed with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai. As you can see, we remain highly confident about the future of Macau where Cotai Phases 3 and 4 will support Macau�s vision of becoming a World Centre of Tourism and Leisure.

Greater Bay Area / Hengqin

Regarding our development plan in Hengqin, we are awaiting updates from the government and would welcome the opportunity to contribute to the evolving role of Hengqin in Macau�s future development. In addition, we are expanding our focus beyond Hengqin and Macau to potentially include opportunities within the rapidly expanding Greater Bay Area.

International

Our Japan based team continues with our Japan development efforts even as they deal with the COVID-19 crisis. We view Japan as a long term growth opportunity that will complement our Macau operations and our other international expansion ambitions. GEG, together with Monte-Carlo SBM from the Principality of Monaco and our Japanese partners, remain interested in bringing our brand of World Class IRs to Japan.

Selected Major Awards in 1H 2021

Contacts

For Media Enquiries:

Galaxy Entertainment Group - Investor Relations

Mr. Peter J. Caveny / Ms. Yoko Ku / Ms. Joyce Fung

Tel: +852 3150 1111

Email: ir@galaxyentertainment.com

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