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Galaxy’s revenue drops; competition hits city clubs

FACED WITH EVER INCREASING COMPETITION GALAXY ENTERTAINMENT GROUP LIMITED ANNOUNCED YESTERDAY ITS FIRST QUARTER REVENUE DROPPED ALMOST 6 PERCENT COMPARED WITH THE SAME PERIOD LAST YEAR.
During the first three months of they year revenue fell to HKD2.72 billion compared with HKD2.89 for the first quarter of 2007.
Earnings before interest, tax, depreciation and amortisation dropped by 21 percent to HKD210 million.
밒 AM PLEASED TO ANNOUNCE ANOTHER SOLID PERFORMANCE AS COMPARED TO THE SAME PERIOD LAST YEAR, DESPITE THE INCREASINGLY COMPETITIVE ENVIRONMENT,  SAID CHAIRMAN LUI CHE WOO.
밯e remain positive about the outlook for the full year and beyond, as we leverage our local knowledge to attract customers from across the region and particularly Mainland China, and we continue to develop and evolve our brand and offering with new concepts and partners.”
Gaming revenue at the company's casino, StarWorld, increased by 26 percent to HKD1.75 billion compared with the last three months of 2007. VIP gaming revenue increased almost 50 percent to HKD1.4 billion
밢ccupancy rates were well above the market average and core VIP gaming revenues rose 50 percent over the same period last year,  said Mr Lui.
밫HIS WAS IN-LINE WITH EXPECTATIONS, AND VIP NOW REPRESENTS 70 PERCENT PLUS OF STARWORLD뭩 GAMING REVENUES.”
Galaxy's CityClubs which operate casinos under the company's license and 밼ocus on the VIP gaming market  were hit by the increasing competition in that sector.
THE CLUB'S CONTRIBUTION TO QUARTERLY EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION SPIRALLED FROM HKD76 MILLION IN THE FIRST QUARTER OF 2007 TO HKD3 MILLION.
Last month Galaxy announced it would be entering into a 뱂umbo  deal with a junket operator for use of 100 VIP tables at StarWorld.
ALTHOUGH NO FURTHER DETAILS HAVE BEEN ANNOUNCED THE COMPANY YESTERDAY SAID THE DEAL HAS BEEN DONE.
 [In response] to the competitive market and increased Junket commissions, we reached an agreement with a leading operator to promote up to 100 new VIP tables in StarWorld,  a press release said.
밯E BELIEVE THAT THE STARWORLD EXPANSION AND VIP PROMOTER AGREEMENT THAT WE HAVE REACHED WILL SIGNIFICANTLY INCREASE GALAXY뭩 EBITDA AND RETURN ON INVESTMENT,  SAID MR LUI.
밫he scale of the agreement gives Galaxy and our partner the capacity to expand StarWorld뭩 VIP offering in-line with market demand”
THE COMPANY'S COTAI RESORT IS ON SCHEDULE TO OPEN MIDWAY THROUGH NEXT YEAR.
밯ITH THE SIGNING OF TWO EXCITING AGREEMENTS WITH LUXURY HOTEL OPERATORS BANYAN TREE AND OKURA, OUR PLANS FOR THE ENTIRE FIRST AREA OF THE GALAXY MEGA RESORT ARE NOW IN PLACE,  SAID MR LUI.

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