Galaxy Entertainment Group Ltd. (00027.HK) is opening two new large casino resorts in Macau on Wednesday despite a slide in industry revenues over the last 11 months.
The casino group hopes the new resorts will help pull in more visitors by offering several facilities that go beyond gaming, the Hong Kong Economic Journal reported, citing the firm’s chief financial officer Robert Charles Drake.
Galaxy Macau Phase Two and Broadway Macau will house many attractions, including Macau’s largest “wonderland” for kids, a 3,000-seat theater and a 575-meter long skytop river ride, apart from new gaming tables.
Brokerages feel the new resorts could serve as a test for industry to help it determine whether a supply-led market is still there for the taking.
Bank of America Merrill Lynch expects the Macau gaming sector to generate daily gaming revenue of over 700 million Macau patacas (US$87.7 million) after the launch of the new resorts.
However, the new resorts must gain at least 3 to 5 percent market share to ensure growth in their earnings before interest, tax, depreciation and amortization, given estimated daily operating costs of US$1 million, the report said.
Translation by Vey Wong
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