Galaxy Shares Slump
As reported by the China Standard: "Galaxy Entertainment Group, a casino operator in Macau, said profit surged 43 times last year, but its shares slumped as earnings were well below analysts' forecasts and the company did not propose to pay any dividend. "Galaxy said net profit was HK$2.4 billion in 2005, compared to HK$55.9 million in 2004. The growth was purely the result of a HK$3.03 billion accounting gain related to the company's shift from a construction materials producer into a casino operator through the HK$18.4 billion reverse takeover last year.
"Its 2005 profit fell well short of the median estimate of HK$4.18 billion of analysts surveyed by IBES. Moreover, the company recorded revenue declines in both its original construction business and its new casino operations.
"Galaxy's board voted not to pay any dividend given the funding needs of its casino hotel projects in Macau. The company's shares fell 3.4 percent Tuesday to HK$7.15 "
<< Home