Galaxy to accelerate casino resort project in Macau to tap gambling boom

The money will be spent on raising the number of rooms ready when Galaxy Macau casino resort opens early next year by more than 50 % to 1,400, Chairman Lui Che Woo said in Hong Kong. The new commitment will bring the total investment to us$ 1.9 billion, according to a statement.

“What we’ve seen from Okura, Banyan Tree and the market in general, there is a demand to fill: We have the opportunity to open the rooms sooner, we are moving ahead to do so.” Chief Operating Officer Michael Mecca said. Revenue may increase 40 % in the second half, he said.

Sales rose 61 % to us$ 1.1 billion in the six months ended June 30, Galaxy said. Visitors from mainland China to Macau, the only city in the nation where casinos are legal, surged in the period. Gambling revenue in Macau climbed 67 % in the first six months of the year to us$ 10.7 billion, the Gaming Inspection and Coordination Bureau said last month.

The casino operator said April 12 it received a six-year, us$ 1.1 billion loan for building a resort in Macau from seven banks including Industrial & Commercial Bank of China and HSBC Holdings. First-half net income fell 55 % to us$ 61 million as the company lost money on bond buybacks, it said in a statement to Hong Kong’s stock exchange. The firm had a us$ 17 million loss on bond buybacks compared with a us$ 105.2 million gain last year, the casino operator said.

Galaxy dropped 3.2 % to close at us$ 0.7 in Hong Kong trading. The stock has gained 87 % this year compared with a 6.1 % decline by the benchmark Hang Seng Index. First-half earnings before interest, taxes, depreciation and amortization rose 91 %to us$ 115.6 million, according to today’s statement

Tourist arrivals in Macau, the world’s biggest gambling hub, increased 18 % in the first half, with visitor numbers from China surging 27 %, according to government data.