Galaxy Macau Phase 4 Launch Advanced by 1 Year

Simoni797

According to financial services company Jefferies, Galaxy Entertainment Group (GEG) is considering advancing the launch date of Phase 4 of the Galaxy Macau complex from 2027 to 2026. This adjustment follows the delay in the launch of Phase 3 of the Galaxy Macau complex. Phase 4 will offer 1,600 larger, higher-quality rooms, with a focus on the upscale mass market, rather than the originally planned 2,500 rooms that were part of the initial Galaxy Macau Integrated Resort. With this modification, there will now be 7,500 rooms available.

Given GEG's strong financial position and expectations of profit recovery to 2019 levels, Jefferies analyst Andrew Lee anticipates an increase in GEG's dividend distribution in the medium to long term. GEG has approximately HKD 12 billion in net cash (USD 1.53 billion) and around HKD 13.2 billion in cash and bonds (USD 1.69 billion), allowing room for increased dividends.

With revenue gradually increasing, the Phase 3 project is expected to come closer to 2019 levels. Galaxy's VIP gaming accounts for only 12% of total revenue, compared to 15% previously, with a focus on direct VIPs and players residing outside Mainland China. This indicates a strong performance in the upscale mass market.

With the opening of The Ritz-Carlton hotel, the upscale mass gaming tables are expected to return to pre-pandemic levels. Lee predicts that as Macau continues to be a popular international destination, GEG's revenue will further increase. The company's strong financial position and profit recovery ensure future dividend payments."

Samiksha

Expanding indicates profitability.

divya939393

Galaxy is also a very large casino, isn't it?

Yamini003

You can still look forward to it.