Casino Billionaire's Profit Misses Estimates

Galaxy Entertainment Group's Lui Che Woo

Billionaire Lui Che Woo reported a 22% drop in earnings at Galaxy Entertainment Group on Wednesday.

The Hong Kong-listed casino operator announced a net profit of 898 million Hong Kong dollars ($115 million) for 2010 that fell short of analysts’ expectations of $1.2 billion Hong Kong dollars, according to Thomson Reuters

Although Galaxy’s revenue surged 57% to $19.3 billion Hong Kong dollars, the company said its drop in earnings was “mainly because of one-time special gain/loss from bond buyback and early note redemption.”

Lui was recently ranked the 13th richest person in Hong Kong on the Forbes World’s Billionaires list, with a fortune valued at $3.8 billion. The 81-year-old tycoon’s son, Francis Lui, is Galaxy’s deputy chairman. The family’s assets include the InterContinental hotel and 3 Stanford hotels in Hong Kong. They also control the property firm K. Wah International that was founded by the elder Lui in 1955.

Galaxy plans to open its new $2 billion resort on May 15, featuring three hotels with a total of 2,200 rooms, more than 50 food and beverage outlets and the world’s largest sky-top pool.

Galaxy is one of six license holders allowed to operate casinos in Macau, the only place in China where gambling is legal. The total revenue for Macau’s casino market soared 58% to $23.5 billion last year.

Galaxy’s competitors include U.S. operators Sheldon Adelson’s Sands China and Steve Wynn’s Wynn Macau as well as the market leader SJM Holdings, which is controlled by the Stanley Ho family.

Vice Chairman Francis Lui