Macau casino operator Galaxy Entertainment Group (GXYEF) posted a 28% rise in net profit in the third quarter from a year earlier as the world’s biggest gambling hub showed tentative signs of a turnaround after plummeting growth in the past two years.
The company reported profit of HK$2.7 billion ($348.13 million) for the quarter ended in September, while revenue rose 5% to HK$12.9 billion. Profits beat analyst estimates of about HK$2.4 billion, sending shares up about 3.8% in Hong Kong to their highest in more than a year, according to Bloomberg.
Galaxy, one of six listed casino operators in the Chinese territory of Macau, has been hit by sagging demand from high roller Chinese gamblers due to a pervasive crackdown on corruption and slowing economic growth.
Conversely, the number of tourists coming from the mainland reached a record high of nearly 1 million during the country’s so-called “Golden Week,” China’s weeklong break for National Day. Bloomberg reports it’s the most tourists to visit Macau from mainland China during that period over close to 10 years.
This year, Macau ranks as one of the top destinations for Chinese tourists, Coins2Day’s Scott Cendrowski reported.
“The Macau market is clearly transitioning to a mass market focused environment and Galaxy continues to align its operations with the changing market conditions,” the company said in a statement.
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The former Portuguese colony, now a special administrative region belonging to China, is the only place in the country where citizens are legally allowed to gamble.