Macau's Galaxy Entertainment reports H1 profit hike

January-June net profit reached HK$2.6 billion ($335.31 million), Galaxy said in a statement to the Hong Kong's stock exchange. Group revenue rose 1 percent, with a 15 percent decline in revenue from VIP visitors dulling gains from mass market visitors.

Galaxy, like the five other listed casino operators in the Chinese territory, has been hit by sagging demand from high-roller Chinese gamblers as economic growth on the mainland slows and as the government in Beijing discouraged demonstrations of wealth among public officials.

The former Portuguese colony, now a special administrative region, is the only place in China where gambling is legal.

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Galaxy said it remained optimistic about Macau's prospects in the medium term citing gradual signs of stabilization in the broader mass segment

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Galaxy occupies the biggest plot on Macau's Las Vegas-style Cotai strip, where Wynn Macau Ltd (1128.HK) this week opened the $4 billion Wynn Palace resort.

U.S. billionaire Sheldon Adelson is will open his $3 billion Parisian property there on Sept. 13 via local subsidiary Sands China Ltd (1928.HK).

"While we do acknowledge that there might be increased competition with the opening of additional properties in Cotai, we are hopeful that the new properties will also be a catalyst for increased visitation," Galaxy said.

Galaxy, whose Cotai plot is only half developed, said it is planning to develop a non-gaming resort on the neighboring Chinese island of Hengqin to complement its casino in Macau.

Non-gaming facilities have risen in priority as gaming revenue declines and as authorities reduce the territory's reliance on casinos.

($1 = 7.7541 Hong Kong dollars)