* On EBITDA basis Galaxy to be strongly cash flow positive
* No further plans to issue renminbi debt
* Galaxy Macau to have 450 tables, potential to increase
(Adds quotes, detail)
By Farah Master
HONG KONG, March 10 (Reuters) - Macau casino operator Galaxy Entertainment Group (0027.HK) is confident of hitting its target returns with the launch of its new casino, as the overall market continues to grow this year.
One of six companies licensed to operate casinos in the world's largest gaming market, Galaxy's new HK$15 billion ($1.9 billion Galaxy Macau resort is expected to be the only new casino to open in the former Portuguese enclave this year.
Chief Financial Officer Robert Drake said he expected percentage returns to be in the mid to high teens and that on an EBITDA basis the operator will be strongly cashflow-positive.
"We are quite confident that even though the projected growth rate (for the Macau market) is in the 20 percent range, that translates into absolute dollars of $50 billion of growth. That is a lot to spread among one market," Drake told a media briefing.
Galaxy's Hong Kong-listed shares, about 20 percent owned by European private equity firm Permira, have nearly tripled in value over the past 12 months, outperforming casino magnate Sheldon Adelson's Sands China Ltd (1928.HK), Steve Wynn's Wynn Macau Ltd (1128.HK), and Macau tycoon Stanley Ho's SJM Holdings Ltd (0880.HK).
Eleven out of seventeen analysts covering the stock have a "strong buy" or "buy rating, according to Thomson Reuters Starmine and the firm is expected to report annual results later this month.
Macau, the only Chinese territory that permits casino gambling, has transformed in recent years from a sleepy outpost on the South China sea into a pulsating maze of neon lights and Galaxy already has five casinos there.
"Sure, our market share will increase, but at the same time we are not as focused on market share as on driving profitable volume," said Drake.
Galaxy, controlled by Hong Kong billionaire Lui Che Woo, said earlier on Thursday it will open the new 550,000 square metre Galaxy Macau on May 15, with the timing roughly in line with analysts' expectations.
The company said it has no immediate plans to issue more renminbi debt after its debut as the first high-yield issuer to sell renminbi bonds in Hong Kong. [ID:nL3E6ND07V]
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