The launch of the first stage of Galaxy Macau’s Phase 3 development will likely be postponed until mid-2020 due to delays in acquiring various government approvals, according to Union Gaming analyst Grant Govertsen.
Commenting on Galaxy Entertainment Group’s 3Q18 earnings in a Friday note, Govertsen revealed that construction work on Phase 3 has “largely maxed out for the time being” pending the approvals.
As a result, it is unlikely that Phase 3, including the first batch of new hotel rooms, will come online until mid-2020, with the project having previously been expected to open in stages from late 2019.
Govertsen added that design work on Phase 4 continues as usual.
Despite the delay, Union Gaming maintains Galaxy as “the best operator in the market today” and well placed to ward off any headwinds in the coming years as it waits to add to its Cotai presence with the addition of Phases 3 and 4.
Galaxy saw its net revenue grow 6% year-on-year to HK$13.0 billion and Adjusted EBITDA 10% to HK$3.9 billion in 3Q18, with both mass and VIP performing strongly.
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