Gaming operator Galaxy Entertainment today announced a profit of HK$608 million for the six months ended 30 June 2010, representing an increase of 153 percent over the corresponding period last year, after adjusting for theone-off gain or loss from the bond buybacks. The group achieved a net profit attributable to shareholders of HK$475 million. The first half of 2010 included a one-off loss of HK$133 million, and the first half of 2009 included a one-off gain of $819 million arising from the bond buybacks. Revenue was HK$8.6 billion, representing an increase of HK$3.2 billion or 61 percent over the corresponding period last year. For the first half of 2010, the company’s adjusted EBITDA was HK$990 million, representing a rise of HK$473 million or 91 percent over the corresponding period last year. The company didn’t declare any dividend. Meanwhile, Galaxy is accelerating the development schedule of Galaxy Macau. Accordingly, the company today announced an additional investment of HK$0.8 billion on: increasing room capacity at launch by over 50 percent to 1,400 rooms (previously 900), including the full opening of all Banyan Tree and Okura hotels; opening full complement of over 50 F&B outlets; fit-out, expansion and enhancement of the resort facilities. This additional commitment will see the total investment in Galaxy Macau reach HK$14.9 billion. This investment will be funded from the existing credit facilities, including the club loan, cash on hand and funds from operations. The company also notes that the Macau government has recently implemented a number of changes in the labour regulations. The cost implications of this for Galaxy are being evaluated, but the group says it is “currently confident these will cause no material impact on its financial performance, or the potential to achieve strong returns from its investment in Galaxy Macau,” which schedule to open “early 2011”.
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