Galaxy Entertainment Annual Profits Double
The rise of Chinese gamblers to Macau is responsible for the incredible rise in annual profit of Galaxy Entertainment Group Ltd, the Macau based casino operator.
The company profits more than doubled compared to last year’s intake, with net income rising from HKD3 billion in 2011 to HKD7.4 billion (USD953 million) in 2012.
The company which runs the Galaxy Macau and StarWorld Hotel casinos plans to invest up to HKD50 billion in order to develop a Macau resort with hopes of enticing more Chinese tourists.
In a recent press conference the company’s Deputy Chairman, Francis Lui, said that they have received approval to increase their Galaxy Macau and Starworld properties by 50 tables. Lui also added that he saw no evidence of a China government crackdown on casino operators so far.
Other companies such as Sabds China Ltd and Melco Crown Entertainment Ltd also have plans to expand in the Cotai area where casino revenues showed unprecedented revenues of 304 billion patacas in the last year.
Despite the seeming financial success of Galaxy Entertainment in the area Macau’s overall growth in the gaming sector is slowing.