Melco Crown Entertainment Limited saw a 22 per cent increase in net revenue for the third quarter of 2016, according to results released late yesterday. Revenue expanded to hit US$1.15 billion (MOP9.2 billion/HK$8.92 billion), which the group notes as ‘primarily attributable to the net revenue generated by Studio City’, among others. The results from the property, coupled with the increase in casino revenues for the group’s Philippines property – City of Dreams Manila – were ‘partially offset by lower casino revenues at City of Dreams in Macau and Altira Macau’, notes the operator in its earnings statement.
“Studio City […] delivered a sequential increase of over 24 per cent in mass table gross gaming revenues and over 110 per cent in adjusted property EBITDA (earnings before interest, taxation, depreciation and amortization)”, states the group’s Chairman and Chief Executive Officer, Lawrence Ho.
The group’s City of Dreams Macau property saw an 11 per cent decrease in its adjusted EBITDA during the period, amounting to a 11 per cent year-on-year decrease, hitting US$170.4 million during the third quarter, which the group attributes to ‘lower mass market table games revenues and gaming machine revenues’.
Further abroad, and right at home
Rolling chip volume at the City of Dreams property amounted to US$10.6 billion during the quarter, according to the group, amounting to nearly a 14 per cent increase year-on-year. The group’s Studio City property saw mass market table games drop at US$657.6 million.
The group’s Manila operations saw net revenue amounting to US$131 million, with rolling chip volume reaching US$1.6 billion during the third quarter. Mass market table drop hit US$146.8 million during the quarter.
“City of Dreams Manila delivered improvements in all gaming segments which, together with our company-wide focus on managing reinvestment costs and other operating expenses, resulted in an increase in adjusted property EBITDA of approximately 85 per cent on a year-over-year basis,” says the CEO. “City of Dreams Manila provides us with a diversified earnings stream which complements our operations in Macau.”
Net income attributable to Melco Crown for the quarter amounted to US$62 million.
The CEO notes that as “trends stabilise” in the local market, the operator is positioned to benefit from the city’s “evolution into a mass-focused, multi-day stay destination.” To do this the aim is to “lead Macau in its transformation to the integrated resort model and away from the traditional gaming model through the development of diversified, mass-focused integrated resorts that deliver world-class entertainment and other non-gaming amenities which cater to a broad spectrum of customers,” says Ho.
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