Shares of Macau casino operator Galaxy Entertainment Group Ltd (00027) surged 5.06% to HK$36.20 on Wednesday, following the company's robust third-quarter earnings report which exceeded market expectations and underscored its solid growth prospects.

For the quarter ended September 30, Galaxy posted an 11% year-on-year increase in net revenue to HK$10.7 billion (US$1.38 billion), while adjusted EBITDA climbed 6% to HK$2.9 billion. The gaming conglomerate's balance sheet remained healthy, with total cash and liquid investments of HK$28.6 billion and a net cash position of HK$27.4 billion after debt. It also declared an interim dividend of HK$0.50 per share paid on October 25.

Analysts at Citi maintained a "buy" rating on Galaxy's stock, citing the earnings beat and the company's robust financial position. The brokerage said the results underscored Galaxy's ability to capitalize on Macau's ongoing recovery from the pandemic, supported by its expansion plans including the upcoming Capella hotel, Galaxy International Convention Center, Galaxy Arena, and Phase 4 project focused on non-gaming attractions.

With its strong quarterly performance and development pipeline, Galaxy Entertainment appears well-positioned to benefit from Macau's growth in both gaming and non-gaming segments, bolstering investor confidence in the company's long-term prospects.