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Chinese gamblers buoy Permira-backed Galaxy Entertainment

  • Anita Davis
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Permira-backed Macau casino group Galaxy Entertainment reported an 84% year-on-year in underlying profit in the first half of 2011, attributed to strong spending by mainland Chinese gamblers. The company reported EBITDA of HK$1.8 billion ($230.9 million), up from HK$990 million a year earlier.

The financial performance exceeded market expectations, prompting Galaxy's share prices to rise more than 5% to HK$20.2.

This came despite the company also announcing a 20.4% drop net profit to HK$378.3 million, which was attributed to the opening of a new $2 billion property, Reuters reported. Galaxy said that net profit, once adjusted for the one-off HK$800 million expenses related to the opening of the new property, was HK$1.3 billion.

US buyout firm Permira took a 20% stake in Galaxy for nearly $840 million in 2007. The entertainment group manages one of only six licensed casino operators in Macau, which is poised to surpass Las Vegas' gambling revenue this year by as much as five times.

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