Inside Asian Gaming

inside asian gaming JUNE 2015 24 Cover Story adds, “I love the gaming floor. It reminds me of old days Macau.” The casino has street-level picture windows looking out toward Galaxy that, along with its compact layout, lends it a boutique feel. In its first four and a half days of operation, Broadway’s gaming floor reportedly tallied HK$5.3 million in gaming revenue. Investment bank analysts have also been impressed with Galaxy Phase 2 and Broadway. Galaxy “nailed it,” Union Gaming Macau Managing Partner Grant Govertsen and Analyst Felicity Chiang write. “The expansion will enable Galaxy, for the first time, to fully compete across all market segments, and to provide a much more meaningful IR experience. This should allow the company to be a near-term market share taker across all gaming segments.” Credit Suisse Research Analysts Kenneth Fong and Isis Wong praise Galaxy’s range of products catering to the high-, middle- and low-market segments, the “wide variety and uniqueness of non- gaming offerings that help diversify Macau and lengthen players’ stay” and “traditional local brands that not only support SMEs but preserve Macau tradition.” The report warns, “Despite our full confidence in management’s solid execution and the product, the current weak demand, especially high-end demand which Phase 2 focuses on, may create a challenging backdrop for the new property to ramp up.” Unless the expanded resort stimulates new demand, Galaxy’s expansion “may raise investors’ concern over ‘industry over-supply’ and may trigger a sector de-rating. We remain cautious.” Credit Suisse’s review of May gaming revenue estimates Macau’s average daily revenue rose during the week of the Galaxy opening to MOP691 million from MOP625 million the previous week. Whatever customers, analysts and investors may say, Galaxy seems convinced that giving the authorities more of the non-gaming amenities they want will pay off in the long run. Editor at large Muhammad Cohen also blogs for Forbes on gaming throughout Asia and wrote “Hong Kong On Air,” a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie. Investment bank analysts have also been impressed with Galaxy Phase 2 and Broadway. Galaxy “nailed it,” Union Gaming Macau Managing Partner Grant Govertsen and Analyst Felicity Chiang write. “The expansion will enable Galaxy, for the first time, to fully compete across all market segments.”