Galaxy Entertainment Group is looking at property developments and enhancements to deliver future growth, in addition to an expectation that Chinese tourism is to play an increasingly prominent role in the success of Macau-based properties.
A decrease of five per cent year-on-year saw revenue reach HK13.2bn (US$1.68bn), driven by a decrease in gaming, as GEG continued to praise positive impacts set to be felt from a number of developments, for which updates were provided in its latest financial report.
Continuing with a $1.5bn property enhancement program for its Galaxy Macau and StarWorld Macau entities, the firm is progressing to preparation works for the effective future integration and connectivity of phases three and four.
This is to see the inclusion of approximately 4,500 hotel rooms, 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, F&B, retail and casinos.
Continuing plans to develop a Hengqin based lifestyle resort to complement Macau’s “high-energy entertainment resorts,” the prospects of Japanese integrated resorts also falls on the GEG radar.
Continuing with development efforts, the firm stresses that Japan is viewed as “a great long term growth opportunity that will complement our Macau operations and our other international expansion ambitions”.
Lui Che Woo, Chairman of GEG, explained: “We have continued to make good progress with our previously announced $1.5bn property enhancement program. We believe these property enhancements will ensure the continuing attractiveness and competitive position of both Galaxy Macau and StarWorld Macau.
“In the shorter term some customer disruption will occur but medium term the program will create shareholder value. Furthermore, we continue our construction works in Cotai phases three and four and review international expansion opportunities on a case by case basis.
“In Japan we continue to build relationships with the community through activities such as sponsoring the EuroJapan Cup 2019 and the JapanMacau integrated resort management mentorship pilot scheme in conjunction with the Macau University and Toyo University.
“In the medium to longer term, we remain confident in the outlook for Macau due to the increasing wealth of the middle class in mainland China, that will in turn result in the growth of demand for tourism, leisure and travel.”
GEG’s flagship Galaxy Macau property continued to provide a large chunk of total revenue, however a four per cent drop to HK$9.5bn (US$1.21bn) was reported for the period.
StarWorld Macau dropped ten per cent to HK$2.8bn (US$356m), with Broadway Macau increasing slightly as it came in at HK$147m (US$18.7m).