Galaxy Entertainment Group Ltd. is a company that holds many luxurious hotels and casinos in China. The Start World Macau, Four City Club casinos including the Grand Waldo hotel and Galaxy Macau are some of the properties that the company holds and maintains in Macau.
Galaxy announced their quarterly results almost a month earlier than usual, and has turned its attention to winning back gamblers by making way for two new casinos in Macau. Their report stated that the adjusted earnings for the first quarter fell 40 percent to $297 million. Also, due to decline in high-class gamblers due to China’s recent crackdown, revenue has also dipped 32 percent.
As China’s gambling economy slows down and President Xi Jinping’s nationwide crackdown stretches, the company expects gaming revenue to fall to an all new low. The total revenue from gambling has already been declining at an alarming rate in the world’s most popular gaming hub. Galaxy’s market shares closed at $4.90 after a rise of 4 percent. It also climbed 0.4 percent in the Hang Seng Index.
Galaxy plan to start its two new projects from May 27 on Cotai Strip in Macau. Victor Yip, an analyst at UOB-Kay Hian Holdings Ltd., said that the two new projects by Galaxy Entertainment Group are so big that they wanted to get done with their results and move to the next step. Starting these two new projects will also make Galaxy the city’s first casino operators to start a new wave of expanded casinos and resorts.
Company in its latest announcement, said that despite the challenges, they hope to remain optimistic in a longer-term scenario and are focused on launching the two new openings – Galaxy Macau Phase 2 and Broadway at Galaxy Macau.