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Macau casino Galaxy earnings in line with forecasts; upbeat on outlook
April 27, 2016 / 1:52 AM / 2 years ago

Macau casino Galaxy earnings in line with forecasts; upbeat on outlook

HONG KONG, April 27 (Reuters) - Macau’s Galaxy Entertainment posted a 6 percent rise in first-quarter earnings on Wednesday, in line with forecasts, and sounded a positive note for the coming year.

Macau casino revenues have tumbled over the past 23 months due to slowing economic growth in China and an anti-corruption campaign which has kept high roller gamblers away from the baccarat tables in the southern Chinese enclave.

A former Portuguese colony, Macau is the only place where Chinese nationals can gamble in the country.

Galaxy’s quarterly adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were HK$2.4 billion, down 2 percent on the previous quarter and up 6 percent year on a year earlier.

Revenue for the first three months of the year was $13.4 billion, down 2 percent on a year ago.

In a statement to the Hong Kong stock exchange on Wednesday, Galaxy said it remained confident in the medium to long term outlook for Macau but would “continue to exercise caution in light of the unpredictable and volatile business and economic environment.”

Shares in the casino operator fell nearly 1 percent in Hong Kong on Wednesday, lagging a 0.6 percent drop for the benchmark index.

Galaxy’s shares have risen 16 percent since the start of the year, outperforming the benchmark Hang Seng Index which has fallen 2 percent in the same period.

Reporting by Farah Master; Editing by Richard Pullin

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