By Yi Wei Wong
Galaxy Entertainment Group Ltd. (0027.HK) said its first-half net profit fell 7%, as a challenging VIP segment weighed on earnings.
Net profit for the first half was 6.68 billion Hong Kong dollars (US$851.0 million), compared with HK$7.21 billion in the same period a year ago, the casino operator said Tuesday.
Revenue for the period was HK$26.22 billion, compared with HK$28.06 billion a year earlier, the company said.
Gross gambling revenue fell 11% to HK$30.60 billion, pulled down by the VIP market, it said. Gambling revenue from VIP players fell 25% to HK$14.80 billion, the company said, as competition from regional casinos intensified and gamblers tightened their belts amid a slowing global economy.
Galaxy Entertainment said it would proceed with a HK$1.5 billion renovation of its Galaxy Macau property, the main contributor to the group's revenues.
Write to Yi Wei Wong at firstname.lastname@example.org