Galaxy Entertainment Group says it will continue to adopt a multi-regional approach in its pursuit of a Japan IR license, with a particular focus on both Osaka and the Kanto region – which includes Tokyo and Yokohama.
Holding a press conference in Osaka on Wednesday ahead of the IR Gaming Expo 2019, which opens at Intex Osaka today, Galaxy confirmed it won’t limit itself to one single city or prefecture and will continue to keep an eye on the RFP schedules and specifics from the national and regional governments.
The company also pointed to its strong cash flow as a major advantage it holds over many of its Japan IR rivals, including net profit of JPY190 billion in 2018, alongside Adjusted EBITDA of JPY238 billion and 19% EBITDA growth. Galaxy emphasized its cash and liquid investment holdings of JPY645 billion and market capitalization JPY3.6 trillion.
In response to a question from local media regarding potentially developing more than one Japanese IR should the opportunity present itself, Chief Operating Officer Japan, Ted Chan, said Galaxy would be in a unique position to do so.
“The likelihood is low but I would love to be in two cities,” he said. “We are an IR operator that can handle multiple trillion-scale JPY projects.
“We are the fastest growing IR operator. We are confident that we can build a high-quality facility that will meet the needs of the Japanese government.”
Chan did make it clear, though, that Galaxy is primarily focused on bigger cities, in an effort to meet the Japanese government’s stated target of doubling inbound tourism to 60 million annual visitor arrivals by the 2030s.
“We surveyed Osaka for over seven months. The facility needs MICE that can hold large-scale exhibitions and international conferences. Osaka’s facilities have a low reputation globally. Osaka simply needs a better facility.”
Galaxy expressed no problem with the idea of potentially having to contribute JPY20 billion to extend Osaka’s subway system to Yumeshima island, the planned site for the city’s IR development. However, Osaka’s goal of opening an IR by 2024 was greeted less enthusiastically.
“We may not make it if we don’t start today,” Chan said. “One option may be a partial opening, so we could, for example, work on it by opening a hotel first, but we will not compromise on quality.”
