Galaxy Entertainment earnings plummet 46pc on Macau downturn and costs of new casinos

 
Joseph Millis
EARNINGS at casino operator Galaxy Entertainment plummeted 46 per cent in the second quarter amid higher operation costs at its new casino resorts and a declining market in Macau’s gambling industry.

Adjusted earnings before interest, taxes, depreciation and amortisation fell to HK$1.9bn (£156m) from a year earlier, Galaxy said yesterday. That compares with the HK$1.8bn median estimate of five analysts compiled by Bloomberg.

Macau’s gaming revenue has “almost hit the bottom” and the slump should end in the second half of this year, said Galaxy chairman Lui Che Woo said in a briefing in Hong Kong.

However, he added that the company is confident of Macau’s overall development as the city is “not just about gambling now”.

In May, the casino operator opened its $3.1bn (£1.98bn) expansion of a resort and an adjacent revamped property, marking Macau’s first casino projects in three years.

A wave of casinos featuring more non-gaming amenities will open in the next few years which operators hope will draw more visitors back amid the city’s worst downturn on record.