VIP Segment Weighs on Galaxy Finances in January-March 2019 Period

Galaxy Entertainment saw its results weighed down by a challenging VIP segment in the January-March 2019 period, with the high-roller focused segment falling 25% year-on-year.

While the company posted stronger mass performance in the quarter, with total mass GGR rising 9% year-on-year to US$7.3 billion, it also posted a 25%t drop in VIP GGR, down to US$7.4 billion. Total electronic GGR was up slightly, to US$606 million. Galaxy’s total GGR in the quarter amounted to US$15.4 billion.

Galaxy Chairman Lui Che-Woo said a number of events impacted the market, most notably in the VIP segment, including the introduction of a full smoking ban and increased competition from local and regional casinos. “We continue to progress with the previously announced US$1.5 billion renovation enhancement program in both Galaxy Macau and StarWorld Macau. Whilst there has been some disruption, we believe this enhancement program will make our resorts even more attractive to guests. We anticipate completing this program in the early part of 2020,” stated Lui.

Lui said he remains confident in the medium to longer term outlook for Macau given the continued growth in demand for tourism, leisure, and travel from mainland China. (AGB)