Date
22 January 2017
Lawrence Ho said his company will continue to rely on gaming revenues to drive growth. Photo: HKEJ
Lawrence Ho said his company will continue to rely on gaming revenues to drive growth. Photo: HKEJ

Melco International to open Cotai casino resort amid slump

Melco International Development Ltd. (00200.HK) is opening its casino resort Studio City on Cotai peninsula in Macau in October despite a slump in the gaming business.

Chairman Lawrence Ho Yau-lung said he hopes the new venue would serve as a catalyst in an industry that has seen revenues sliding for the past 14 months.

Ho, son of Macau casino tycoon Stanley Ho Hung-sun, said the company would draw on its experience in launching a gaming resort during the last global financial crisis.

Brokerages expect Melco to be allowed to operate 150 gaming tables in the new resort, similar to the allotment given to rival Galaxy Entertainment Group (00027.HK) for two of its new casinos in May.

Ho said his company will continue to rely on its gaming revenues to drive growth, noting that its non-gaming business, which involves colossal investment, will have a hard time to break even.

The industry will continue to face headwinds in the second half of the year, Ho said, adding that more VIP rooms are expected to be closed.

[Chinese version中文版]

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