Galaxy no fear of Singapore

Gaming operator Galaxy Entertainment believes that casinos in Singapore pose no threat to Macau’s economy, saying that the two cities target different markets, Singapore daily The Standard reported.
Galaxy expects to see its Macau gambling market’s share and net profits to boost after the opening of Galaxy Macau early next year. Currently, Galaxy owns 12 percent of the local market.
The operator’s vice chairman Francis Liu stressed that “Macau aims to lure customers from Greater China, while Singapore targets Southeast Asians.”
He continued: “Carving out market share is not our main target. Profit growth is more important. But our new resort hotel may help us increase market share and be our profit driver.”
Liu did not reveal the expected return on investment for Galaxy Macau, while the rate of return on property StarWorld has exceeded 35 percent.  Last month, the company announced a profit of HKD 608 million for the six months ended June 30, 2010, representing an increase of 153 percent over the corresponding period last year, after adjusting for the one-off gain or loss from the bond buybacks.
The group achieved a net profit attributable to shareholders of HKD 475 million. The first half of 2010 included a one-off loss of HKD 133 million, and the first half of 2009 included a one-off gain of 819 million arising from the bond buybacks.
Revenue was HKD 8.6 billion, representing an increase of HKD 3.2 billion or 61 percent over the corresponding period last year.