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Galaxy Entertainment Group

Galaxy bets on casino openings after slump

2-MIN READ2-MIN
SCMP Reporter

Macau gaming firm Galaxy Entertainment Group plans to open three casinos by August after a shake-out in the cut-throat high-roller segment resulted in dismal performance last year.

Turnover from gaming reached $66 million in the five months to December last year, compared with $123.77 million between July 4 and December 31 in the previous year.

The reporting periods differ because Galaxy only completed the acquisition of the casino interests on July 31 last year, paying $18.4 billion for an effective 97.9 per cent stake in the gaming firm controlled by the family of Lui Che-woo and changing its name from KWah Construction Materials.

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Galaxy's initial footprint in the Macau gaming market consists of the 63-table casino at the Waldo Hotel, which started operations on July 4, 2004.

Net gaming win before tax and commissions was $1.6 billion for the last five months of the year, down from $2.99 billion previously.

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Casino profit slumped to $19 million from $72.76 million.

Despite the less than stellar results, company executives yesterday remained buoyant on the prospects for Macau this year.

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