Mass tables drive gains for Galaxy

 

Gaming and entertainment revenues for Galaxy Entertainment Group Ltd, rose 3 percent to HK$15.06 billion ($1.94 billion) in the second quarter from the April-June period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) for the businesses rose 20.4 percent to HK$3.02 billion, driven by gains of more than 45 percent in earnings from mass tables at the Galaxy Macau and StarWorld Macau. Both properties saw a decline in VIP volumes of 1 percent-3 percent and officials said they expect the market shift toward mass growth to continue. EBITDA from Galaxy casinos inside other companies’ hotels rose 30.4 percent to HK48 million.

Francis Lui, deputy chairman, said Galaxy Macau would soon open a new VIP lounge with 12 tables transferred from its mass area. He said the company is still mulling plans to revamp the Grand Waldo casino hotel next door, which it bought for HK$3.25 billion in July and then shuttered, and estimated the overhaul would take six to nine months. The company indicated however that work on phases three and four of Galaxy Macau may not start until early next year. Lui said he doubted that China’s tightened credit conditions would have a wider impact on the Galaxy beyond one or two VIP rooms and said the company expects to finalize plans to invest in Hengqin island, just across the mainland border from Cotai, in the next few months.