Casino operator expects work to start end of 2013
Casino operator Galaxy Entertainment (0027) is set to submit building plans for expansion of its casino gaming complex soon with work due to start as early as at the end of this year.
“The planning for Phases 3 and 4 has almost been finalised. Proposals are due to be submitted shortly and construction is targeted to commence by the end of 2013 or early 2014,” the company said in its interim results notice on the stock exchange.
On completion in stages between 2016 and 2018, the HK$50-60 billion project would double the footprint of the first two phases with non-gaming amenities accounting for 95 percent of the total floor area.
Piling work for Phase 2 was completed at the end of last year.
“Currently we are working on the hotel tower. We expect it to complete on budget and on schedule by mid-2015 and to be the next major project to open in Macau,” the company said.
HCCG Building and Construction (Macau), a subsidiary of listed contractor Hsin Chong Construction (0404) is the main contractor on Phase 2 which includes two hotels, hotel villas and retail and gaming facilities.
Galaxy’s interim profit for the six months to 30 June 2013 jumped 35 percent year-on-year to HK$4.6 billion on the back of record half year revenue of HK$30.8 billion, which had climbed nine percent year-on-year.
According to Macau government statistics, total gaming revenue in the first half of 2013 in the former Portuguese enclave increased 15 percent year-on-year to HK$166.5 billion while visitor arrivals edged up four percent to 14.1 million.
Galaxy bought out the neighbouring Grand Waldo casino complex last May for HK$3.25 billion and its stock exchange notice gave a hint that perhaps something might happen to it.
“It is located adjacent to Galaxy Macau and the group’s Cotai landbank and is strategically important as [Galaxy] develops its development pipeline,” the company said.
Apart from the casino business, the company also has a construction materials business.
The construction materials segment generated revenue of HK$1.01 billion during the first half.
The company said increased spending in Hong Kong on major infrastructure and construction projects by the government contributed to strong demand for aggregates, ready-mixed concrete and asphalt.
For Macau, the situation was the same with increased public works and casino infrastructure spending leading to increased demand for ready-mixed concrete.