Inside Asian Gaming

September 2010 | INSIDE ASIAN GAMING 61 Briefs world. This, the first phase in our Cotai development, represents the culmination of six years of careful and detailed planning. We are hugely excited about the opening of Galaxy Macau and are confident that it will transform the Macau market just as it is now transforming the Cotai skyline.” “As a result of our confidence, we are seizing the opportunity to increase our investment and exploit surging market demand.” Strong growth was maintained into and throughout the first half of 2010. GEG reported revenue and net profit attributable to shareholders of HK$8.5 billion and HK$475 million, respectively, for the six months ended 30th June 2010. This was in comparison to revenue of HK$5.3 billion and net profit of $1.1 billion for the six months ended 30th June 2009. The first half of 2010 included a one- off loss of $133 million, and the first half of 2009 included a one-off gain of $819 million arising from the bond buyback reported during the periods. After adjusting for these one-off items, reported net profit would have been HK$608 million for the first half 2010 versus $240 million for the first half 2009. On this basis, the Group’s 2010 first half net profit increased 153%. The VIP-dominated StarWorld is currently the Group’s flagship property, and one of the most popular and highest volume casinos in Macau. During the first six months of 2010 it achieved total revenues of HK$7.27 billion and EBITDA of $884 million; a 111% increase over the same period in 2009. In the second quarter of 2010, StarWorld reported revenues of $3.9 billion and its eighth consecutive quarter of EBITDA growth, an all-time record EBITDA of $515 million. Recognizing the significant momentum in the Macau market and the limited new capacity scheduled to open during at least the next 12 months, the GEG is accelerating the development schedule of Galaxy Macau on Cotai. GEG is also enhancing a number of the property’s unique features in order to fully exploit this window of opportunity. Accordingly, GEG announced an additional investment of HK$800 million on increasing room capacity at launch to 1,400 rooms (from 900 previously), opening the full complement of over 50 F&B outlets and expanding and enhancing the resorts other 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. When complete, the 550,000 sq. m Galaxy Macau will feature approximately 2,200 rooms, suites and floating villas across three luxurious hotels; the ultra exclusive Banyan Tree, Japan’s legendary Hotel Okura, and the highly anticipated five star Galaxy Hotel which is modelled on the award-winning StarWorld Hotel. Sitting high above five auspiciously themed gaming areas will be the signature 52,000 square metre oasis resort, incorporating the world’s largest sky wave pool, a white sandy beach, lush gardens, numerous water features and extensive alfresco dining. LVS attorney claims businessman did “nothing” in Macau An attorney representing Las Vegas Sands Corp (LVS) told the Nevada Supreme Court on 2nd September that a Hong Kong businessman “did virtually nothing” to help LVS win a lucrative gaming license in Macau, reports the Las Vegas Review-Journal . Inseekingtooverturn the 2-year-old nearly US$60 million landmark verdict, attorney David Frederick told the seven justices that a Clark County District Court jury relied on three levels of conjecture when it ruled against the casino operator following a 29- day trial. The Supreme Court heard nearly an hour of arguments from attorneys representing LVS and Hong Kong businessman Richard Suen before taking the matter under advisement. One lawyer speculated it could be as long as four months before a decision is rendered. Mr Suen sought compensation fromLVS after he arranged a series of meetings in Beijing in July 2001 between company executives and members of the Chinese government. Mr Suen contended the meetings paved the way for LVS to earn a lucrative gaming license in Macau. In May 2008, a Clark County jury agreed with Mr Suen, awarding him US$43.8 million. Another $14.8 million in interest was tacked onto the verdict. “There is no evidence that his actions had any effect on the Macau license,”Mr Frederick told the court. He said the meetings in Beijing didn’t have anything to do with LVS ultimately getting a license. Mr Frederick argued that the evidence showed the former chief executive of Macau, Edmund Ho, ultimately changed the process and awarded LVS a sub-concession to operate in Macau after the company couldn’t agree with its partner in the process, Hong Kong- based Galaxy Entertainment Group. “There is not a shred of evidence that China had anything to do with the decision,” Mr Frederick said. “They inferred the existence of that evidence. The claim was built on one conjecture, on top of another conjecture and on a third conjecture.” Galaxy Macau Richard Suen