Galaxy Entertainment postpones opening of Macau casino

Nov. 24, 2008 (China Knowledge) - Galaxy Entertainment Group Ltd<27>, the Macau gaming operator controlled by the family of property and construction businessman Lui Che-woo, announced that it plans to push back the opening of its new casino in Macau to 2010 from mid-2009 due to prevailing local market condition and the substantially changed global economic environment.

The Macau casino developer said in a statement that postponing the opening of the HK$10 billion, 1,700-room Cotai resort is in line with the company's strategy amid the current economic situation.

Industry analysts speculated that Galaxy's Macau casino project is likely to be suspended because of financing burdens, following the troubled U.S. rival Las Vegas Sands, which halted its Macau projects last week.

However, Galaxy said in a statement that the company is well capitalized with about HK$6 billion in cash and is confident of funding its new casino on the Cotai Strip.

During the third quarter of this year, Galaxy's existing casino, StarWorld, recorded earnings before interest, tax, depreciation and amortisation of HK$136 million, compared with HK$112 million of the previous quarter.