Billionaire casino tycoon Lui Che-woosays Macau’s gaming industry was heading into a “new era”, following a sharp drop in revenue caused by Beijing’s crackdown on corruption and ostentatious spending.
Mr Lui’s Galaxy Entertainment yesterday reported a 9 per cent rise in full-year revenue to HK$71.8bn (US$9.3bn), making it one of the sector’s better performing operators in 2014. Melco Crown, for example, suffered a 6 per cent drop in income over the same period. However, Galaxy admitted 2014 was a year of two contrasting halves, with group revenue falling 15 per cent in the quarter ending December 31. Mr Lui called last year “one of the most challenging periods in the history of Macau”.
Robert Drake, Galaxy’s chief financial officer, acknowledged that China’s high-profile campaign to root out corruption, along with the slowdown in the economy, had taken its toll on the sector in the second half of the year. Turnover in Galaxy’s VIP gaming rooms dropped 16 per cent in the fourth quarter, in keeping with broader trends in the sector.