CasinoFirst-quarter earnings for Macau casino operators Wynn Macau Ltd. and Galaxy Entertainment Group Ltd. were reported to be up sharply from a year earlier due to the continuing soar in the world’s largest gambling market.

Controlled by the family of Hong Kong tycoon Lui Che Woo, Galaxy reiterated its preparations for a US$2 billion casino-resort on May 15. On the timing or budget, Wynn Macau Chairman Steve Wynn did not offer any updates for the company’s next project in the Chinese territory. For U.S.-based casino operators, Chinese territory has become a crucial source of revenue as business in Las Vegas remains lethargic.

Galaxy is the only new casino property anticipated to open in the former Portuguese colony this year. Wynn Macau and Galaxy compete with Sheldon Adelson’s Sands China Ltd (1928.HK), MGM Resorts International’s MGM Macau and tycoon Stanley Ho’s SJM Holdings Ltd (0880.HK).

In the past 12 months, casino operators such as Wynn Macau have rushed forward about 130 percent, although analysts remain bullish on the sector. J.P. Morgan gaming analyst Kenneth Fong in Hong Kong said that in the midst of the recent strong revenue trend, the sector persists to outperform. While they believe the trend could persist in the near term in the midst of positive sentiment, Wynn Macau’s and the sector’s valuations are testing new highs.

As of March 31, the company said it had $1.4 billion in cash and $3.2 billion in debt.
On the conference call, Wynn said that the company’s board had endorsed a cash dividend of 50 cents per common share. Recovering what they lost in regular trading Tuesday, when they fell $1.57, or 1.1 percent, to close at $138.93, Shares of Wynn raised $3.97, or 2.9 percent, in aftermarket trading.