Galaxy quarterly profit rises

Galaxy shares climbed 3.6 % after the results. Macau casino operators have benefited from increased spending by middle-class Chinese tourists, with Deutsche Bank AG estimating third-quarter revenue from the so- called mass market rose 27 % industry wide in the world’s largest gambling hub.

“We still expect to see significant growth in the future” for the mass market, Galaxy CFO, Robert Drake, said. The completion of the Guangzhou-Zhuhai railway line in China will bring in more mainland Chinese tourists to Macau when it’s completed next year, he said.

Galaxy Macau
Construction of phase two of the Galaxy Macau resort, opened in May 2011 on the city’s Cotai strip, is on schedule to be completed in 2015. The casino operator is investing about U$S 2.5 billion to almost double the size of that gambling center as it competes with companies including Sands China, Wynn Macau and Melco Crown Entertainment.

The planned expansion of Galaxy Macau will add as many as 500 gaming tables, luxury stores and 1,300 rooms from the JW Marriott and the Ritz-Carlton hotels.

Galaxy Macau’s VIP gaming revenue fell 7.1 % from the second quarter to U$S 27 billion, while that for the mass market increased 4.2 % to U$S 1 billion, according to today’s statement.

“In today’s global macroeconomic environment, it’s only natural for them to pause,” Drake said, referring to the VIP market revenue. “It will resume growth in the near future.”

Wynn Macau reported that adjusted Macau property earnings before interest, taxes, depreciation and amortization fell 1.3 % to U$S 292.2 million in the third quarter.