Macau’s gaming industry has seen the worst of a crippling slump and is poised to recover, according to Hong Kong tycoon Lui Che-woo.
Lui, chairman of Galaxy Entertainment Group Ltd. (00027.HK), said the industry hit bottom in June and the worst is behind it, the Hong Kong Economic Journal reports.
The company said its net profit fell 66 percent to HK$2.03 billion (US$261.8 million) in the first six months.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) slipped 42.9 percent to HK$4.16 billion.
Deputy chairman Francis Lui said it will take another two months to confirm if the gaming sector has emerged from a trough.
He said the recent devaluation of the renminbi added uncertainty to the industry.
And that’s despite signs the government may relax restrictions on mainlanders transiting Macau and delay a smoking ban.
Galaxy has been diversifying its business away from Macau, with new offshore investments including a 5 percent equity in SBM, an operator of resorts and casinos in Morocco.
It expects the investment to bring future collaboration between Galaxy and SBM in Asia.
– Contact us at [email protected]