• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Galaxy Phase 3 open maybe mid-2021: analysts

May 14, 2020 Newsdesk Latest News, Macau, Top of the deck  


Galaxy Phase 3 open maybe mid-2021: analysts

The opening of Phase 3 of the Galaxy Macau casino resort on Cotai – including a luxury hotel tower (pictured), an Andaz-branded luxury hotel and a conference centre – is more likely to be “mid-2021″ than “early 2021″, say several investment analysts covering casino gaming. They cited comments by the resort’s promoter Galaxy Entertainment Group Ltd during a Wednesday conference call following the latter’s first-quarter earnings highlights.

The casino firm said it would “’try its best to meet the original target of early 2021′”, though it was “’not unreasonable to see it slipping into mid-2021,’” stated brokerage JP Morgan Securities (Asia Pacific) Ltd, recounting comments by Galaxy Entertainment’s management.

The casino group has for some months in official documents been referring to a “first-half 2021” launch for Phase 3, but had on occasion given guidance verbally of hopes for an “early 2021” opening.

JP Morgan had been “modelling” for a “third-quarter 2021″ launch “all along,” said analysts DS Kim, Derek Choi and Jeremy An in a Thursday note.

Galaxy Macau Phase 3 has faced a number of headwinds this year, including labour-supply disruption due to the Covid-19 pandemic. There was also a local-government-mandated suspension of activity at a worksite for Phase 3 expansion, pending an investigation, after three people died and four were injured in an incident there in late March. The pause had still been in place in late April.

The institution said Galaxy Entertainment was still giving guidance for a HKD50-billion (US6.45-billion) aggregate budget for Galaxy Macau Phase 3 and Phase 4.

“There’s still no comment on the split, but our guess is about HKD15 billion for Phase 3 and approximately HKD35 billion for Phase 4,” stated the JP Morgan team.

“That said, Galaxy continues to fine-tune its project plan and design with increasing focus on high-end and larger units; the number of rooms is expected to be 3,500 (old: about 4,000), with the split likely at 1,400 to 1,500 [rooms] for Phase 3 and 1,900 to 2,000 for Phase 4,” added the brokerage.

Galaxy Entertainment has said Phase 3 will also have casino space; a large-scale arena with 16,000 seats; and 400,000 square feet (37,161 sq metres) of meetings incentives, conferences and exhibitions (MICE) space. An Andaz hotel – a brand of Hyatt Hotels Corp – will also be featured in Phase 3.

Macau EBITDA outlook, Japan

JP Morgan stated: “…we believe Galaxy still offers the most clear-cut growth pipeline, with its Galaxy Macau Phase 3 and 4 projects that will double its capacity (hotel, gross floor area, gaming area, etc), allowing it to get the ‘last bite of apple’ as Macau’s final projects under the current concession,” cycle, which ends in June 2022.

“We forecast these projects can lift the group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) by 50 percent when ramped-up (by 2023 or so), conservatively speaking,” the JP Morgan team further noted.

The institution – along with Sanford C. Bernstein Ltd and Jefferies Hong Kong Ltd – noted in respective commentary that Galaxy Entertainment remained committed to pursuing the right to a casino project in Japan, despite having withdrawn from contention in the metropolis of Osaka.

The firm’s Macau market rival Las Vegas Sands Corp, the parent of Sands China Ltd, had announced on Tuesday that it would not pursue a Japan licence. It had been looking at Yokohama – where more lately Galaxy Entertainment has also focused its efforts – and Tokyo, although the capital has not yet flagged any wish to be in the reckoning.

The three brokerages have noted that Galaxy Entertainment had healthy cash reserves.

“Galaxy has…net cash at HKD47.5 billion and debt at HKD4.4 billion which is related to the treasury management programme. Galaxy also has HKD13 billion in revolver [credit facility] that it could tap if needed,” Sanford Bernstein analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu wrote in a Wednesday memo.

As well as being conservative with cash, the gaming operator had been “less bullish” than its peers in terms of gaming-sector recovery after Covid-19, remarked Jefferies analyst Andrew Lee in a Wednesday note.

“We sense management is confident the sector will return to normal but this will take time with limited near-term visibility, which is dependent on quarantine policies being relaxed,” Mr Lee wrote.

“Similar to its peers, management expects VIP and premium mass to lead the recovery, which is similar to new property openings,” the Jefferies analyst stated.


  • tweet
Related articles
  • Macau govt, analysts tip May Day bounty at casino resorts
    Macau govt, analysts tip May Day bounty...

    Apr 20, 2021  

  • Paradise Ent says deployment of own slots hit by pandemic
    Paradise Ent says deployment of own...

    Apr 20, 2021  

More news
  • Belle Corp 2020 gaming revenue from CoD Manila dips 79pct
    Belle Corp 2020 gaming revenue from CoD...

    Apr 20, 2021  

  • Resorts World Las Vegas set to open June 24
    Resorts World Las Vegas set to...

    Apr 20, 2021  


Latest News

Macau govt, analysts tip May Day bounty at casino resorts

Macau govt, analysts tip May Day bounty at casino resorts

Apr 20, 2021  

The average nightly occupancy rate for Macau hotels – including properties in casino resorts – could reach “70 percent to 80 percent” during the upcoming Labour Day break in May,...
Read More
Paradise Ent says deployment of own slots hit by pandemic

Paradise Ent says deployment of own slots hit by pandemic

Apr 20, 2021  

Belle Corp 2020 gaming revenue from CoD Manila dips 79pct

Belle Corp 2020 gaming revenue from CoD Manila dips 79pct

Apr 20, 2021  

Japan casino draft rules strict, but evolving: experts

Japan casino draft rules strict, but evolving: experts

Apr 20, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$4.3 billion

Budget for Genting Bhd's Resorts World Las Vegas, to open June 24



Most Popular

  • Macau gaming demand recovering comfortably: analystsMacau gaming demand recovering comfortably: analysts April 20, 2021
  • Talks on NagaWorld lay-offs amid pandemic: sourceTalks on NagaWorld lay-offs amid pandemic: source April 19, 2021
  • NUSTAR complex in Cebu slated to open 2022: UHRINUSTAR complex in Cebu slated to open 2022: UHRI April 16, 2021
  • Macau VIP GGR up 20pct sequentially in 1Q: govtMacau VIP GGR up 20pct sequentially in 1Q: govt April 16, 2021
  • Oaktree offers US$$2.3bln for Crown to buy out PackerOaktree offers US$$2.3bln for Crown to buy out Packer April 19, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us