1: 56 AM EDT by Kelvin Wong, May 15, 2011
(Updates with comment from CFO in ninth paragraph.)
May 15 (Bloomberg)--Galaxy Entertainment Group Ltd., part-owned by Permira advisers LLP, open the HK $ 14.9 billion ($ 1.9 billion) casino resort in Macau today after an almost two year delay as a result of the credit crisis.The 450-room table, 2200-Macau Galaxy can help Hong Kong billionaire Lui Che-woo company reduce the dependence on high-stakes gamblers, said Donald Cheng, a Hong Kong-based analyst at Haitong Securities Ltd. Galaxy StarWorld casino made of approximately 90 percent of the first quarter sales of gamblers bet less than $ 250,000 a hand. "It will help diversify Galaxy of her company," said Cheng, who recommends to buy the stock, in an interview. "The only new casino in the city is this year, when revenue is a strong and healthy period of growth, also brings more people there."Casino Gambling revenues in Macau will probably grow 35% to about $ 32 billion this year, according to estimates by CLSA Asia Pacific markets. Galaxy is almost quadrupled in market value in the past year, Wynn Macau Ltd. has more than doubled and Sands China Ltd. climbed 87 percent as gambling increased in's world's largest casino hub.The new location will be "a strong catalyst for the growth of the market" and will help boost earnings in the so-called mass-gaming market segment, that more profitable, Aaron Fischer and Huei Suen Ng, Hong Kong-based for CLSA Asia-Pacific markets, said in a note to clients analysts.Cotai StripGalaxy Macau is on the isthmus of reclaimed land known as the Cotai Strip, where billionaire Sheldon Adelson, Las Vegas Sands Corp. Chairman and chief executive officer, has said he intended to reintroduce the Las Vegas Strip. Sands Venetian Macao, the world's largest casino by floor area, is on the Cotai Strip, with Melco Crown Entertainment Ltd., the city of dreams on the other side of it.Gambling revenues in the former Portuguese colony rose 58 percent last year to 188.3 billion patacas (23.5 billion dollars), about four times that of the Las Vegas Strip. Galaxy's Hong Kong-listed shares 174% in the period won and more than tripled in 2009. Macau casino gambling revenue grew 43 percent to 58.5 billion patacas in the three months ended March as visitors from mainland China more betting on baccarat and other card games. Yield of high-stakes or VIP gamblers 42.6 billion patacas, 73% of total first quarter revenues to casino gambling, from 70% in the same period in 2010. ' Galaxy was Chief Financial Officer Robert Drake said middle class access "We're very excited about the development of infrastructure in mainland China which will Macau more accessible for the budding middle class of China create, "in an interview. "The market Macau is expected to increase from 15 to 20 percent this year and with the development in mainland China and Macau, we are confident that we can support that growth."Galaxy shares rose 3 percent HK $ 13.94 on 13 May. The stock rose 58 percent this year, compared with the climb of 25 percent for Adelson Sands China. Wynn Macau has gained 50 percent while billionaire Stanley Ho SJM Holdings Ltd., Macau's biggest casino operator, has advanced 45 percent.Macau Galaxy, the largest casino to be completed in the city since the Melco Crown City of dreams in June 2009, is aimed at the middle-class Chinese gamblers and can boost company revenue at least 20 percent this year, Francis Lui, son of Lui Che-woo and Vice-President of the company, said in March. "Strong Turnaround '" given a strong implementation of Galaxy Macau, we expect a strong turnaround of the company in the next 12 to 18 months, the financial "UBS analysts Grant Chum and Gary Ngan wrote in a 20 April report. Analysts expect earnings per share double to HK $ 1.03 in 2012 2011. Galaxy that Macau was originally scheduled to open in the third quarter of 2009. The casino operator announced in November 2008 that it would delay the project.Galaxy may post record profit in the first half on higher sales of high-stake gamblers, Chief Financial Officer Robert Drake said in an interview from April 20, after the company reported profit before interest, taxes, depreciation and amortization jumped 71 percent to a record HK $ 712 million in the first quarter.Galaxy reported adjusted profit before interest, taxes, depreciation and amortisation of HK $ 990 million in the first half of 2010 on the sale of HK $ 8.6 billion.Sands China, Asia's largest casino company by market value, said this month first-quarter profit more than doubled as visitors to Macau increased.Wynn, a unit of the casino operator founded by billionaire Steven Wynn, last month said first-quarter profit rose 66 percent after opening her second casino in Macau in April 2010.--With the help of Robert Fenner in Melbourne. Editors: Frank Longid, Terje Langeland
#<640807.903294.2.1.87.23378.25>#-0-May/15/2011 05: 32 GMT
Contact the reporter on this story: Kelvin Wong in Hong Kong in kwong40@bloomberg.net
Contact the editor responsible for this story: Frank Longid on flongid@bloomberg.net
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