By JONATHAN CHENG and PETER STEIN
May 25, 2009HONG KONG -- Even as some of its high-profile rivals struggle, Galaxy Entertainment Group Ltd. executives believe the casino operator has the financial breathing space to wait out uncertainties in the Asian gambling capital of Macau.
In an interview, Galaxy Vice Chairman Francis Lui cited the Hong Kong-traded company's buyback of US$223 million of debt at roughly 50 cents on the dollar, its cost-cutting efforts and its decision to slow construction of a new showpiece casino project. Galaxy, the No. 4 gaming concern in Macau by market share, now sits on about HK$5 billion (US$645 million) in cash.
Galaxy's StarWorld casino in Macau has seen its gambling share shrink.
"Before, it was about expanding at all costs, and that meant a lot of over-investing," Mr. Lui said Friday. In 2004, Macau had 450 gaming tables, and at its peak last year that number had risen tenfold, he noted. "The growth was not sustainable, and an adjustment should be expected," he said.
Two big stumbling blocks last year got in the way of Macau's growth. Mainland China tightened visa approvals, cutting into the territory's biggest source of traffic. Shortly afterwards the global financial crisis went into overdrive.
Mr. Lui said he turned down pitches>>>
Posts
0 comments:
Post a Comment