Galaxy Entertainment Group’s (GEG) Lui Che Woo expressed his belief that suggested proposals to the gaming law, if implemented, would improve the industry’s regulatory oversight, increase the sectors transparency, and secure the long-term viability of Macau’s most important economic pillar.
The public consultation sessions regarding the draft proposals for amendments ended on October 25.
The amendments aim at three main aspects: perfecting the inspection juridical regime, raising the general competitiveness, and developing a healthy and stable gaming sector.
Although the casino concessions are due to re-bid next year, the government has not yet provided guarantees that existing concessions will be renewed following their slated expiration in June 2022.
In a statement released by the gaming operator, GEG chairman said that the company would continue to invest in Cotai Phases 3 and 4, “which will support the ongoing economic development and industry diversification of Macau including the MICE market, particularly following the opening of the Galaxy International Convention Center.”
Phase 3 includes Raffles at Galaxy Macau, which features an approximately 450 all-suite tower, which GEG intends to open in step with prevailing market conditions in 2022.
“We intend to follow this with the opening of the GICC and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets. We are also continuing to proceed with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai,” said the business magnate.
“We remain highly confident about the future of Macau [in which] Cotai Phases 3 and 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure,” Lui added.
During the third quarter, GEG’s net revenue was HKD4.3 billion, in contrast to a net revenue of HKD1.6 billion in Q3 2020 and HKD5.6 billion in Q2 of 2021.
As of September 30, 2021, cash and liquid investments were HKD38.4 billion and net cash was HKD27.8 billion. Total debt accrued was HKD10.6 billion on 30 September 2021, including HKD10.2 billion associated with GEG’s treasury yield enhancement program and HKD0.4 billion in core debt.
Revenue bounce back in October
Analysts from brokerage Sanford C. Bernstein Ltd have noted that Galaxy saw “business immediately bounce back to the high level [measured] before the July [Covid-19] outbreak, in both casino and non-gaming.”
This comes after the relaxation of travel restrictions between Macau and Zhuhai on October 19.
Sanford C. Bernstein Ltd analysts Vitaly Umansky, Louis Li, and Kelsey Zhu recalled that October was “almost breakeven” after just 10 days of normal operation, as cited in a report issued by GGRAsia.
According to the brokerage firm, “Galaxy remains prudent, and will launch [Cotai] in prevailing market conditions in 2022, together with the Raffles and Andaz hotels and the rest of the features in Phase 3.”
