Topline growth optimism outweighs cost overrun concerns

    Published in: Latest IntelligenceSome of Macau’s multi-billion dollar resort plans on the Cotai strip are running over budget amidst rising labor and construction costs, though analysts and industry players remain optimistic the potential for topline growth will eventually outweigh the sky-high expense.News of the cost overruns comes as gross gambling revenue in the world’s biggest gambling hub shows signs of slowing down, squeezed by a combination of factors, such as the weakening macro-environment in China, a clampdown on illegal money transfers and the distraction of the FIFA 2014 World Cup.The mix has sent stock investors running for the exits in recent weeks, with Hong Kong-listed gambling stocks down about 35 per cent from their 52-week high late last year.Still, casino and resort operators remain positive about the developments in Cotai and the budget overruns should be well managed, Robert Drake, chief financial officer of Galaxy Entertainment, told AGBrief on...

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