Phase 3 Construction of Galaxy Macau to Commence in 2017

Galaxy Macau CotaiThe third phase plans for Galaxy Macau which is a flagship property of the renowned Galaxy Entertainment Group Ltd in Cotai district has been submitted as per Francis Lui Yiu Tung, who is the deputy chairman of the company. Galaxy Entertainment has been ranked at number 6 amongst all the casino operators in Macau.

According to Lui, development of new phase of the integrated resort will begin in 2017 and will be completed in two years period. The announcement was made last week when he participated in the Galaxy Entertainment’s annual general meeting. During this meeting, the first quarter results of the company were also declared.

The company has posted a revenue of HKD 14.1 billion or the US $1.81 billion for the last quarter which saw an increase of 5.2% in the same period last year. The adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) saw an increase of 31% on an annual basis to reach a figure of HKD 3.2 billion for the same period. Many market analysts were saying that the results are better than they have anticipated.

Galaxy Macau

Chelsey Tam from Morningstar Inc investment firm made the following statement:

The group’s strong execution is demonstrated in higher-than-market year-over- year mass revenue growth, continuous cost control, and management’s strong focus on mass segment despite a surge in the volatile VIP revenue.

The management team of Galaxy Entertainment had said in the conference call with the analysts that the company was looking forward to achieving cost savings of approximately HKD 300 million in 2017 and 33% has been already achieved till date.

Lui while describing the phase 3 development said that the plan of the project includes a number of different attractions like exhibitions, conventions, gaming facility etc. Earlier statements by the officials of the company stated that non-gaming facilities will be covered in the floor space of Phase 3 and Phase 4. As per Lui, the investment is likely to be somewhere HKD 43 billion.

The Daiwa Securities Group Inc analysts said that the company has not revealed any figure regarding the proposed capital expenditure of phase 3 construction of Phase 3. The analysts have further pointed out that the company has a capital of HKD 1.7 billion and it will spend HKD 700 million in the year 2017 and the remaining 1 billion will be spending next year.

Lui is optimistic of getting a license for its recently opened casino in the country of Japan. According to him, Galaxy Entertainment would be working with SBM which is a Monaco-based firm for obtaining the license.

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