Melco Crown Entertainment announced yesterday net income for the third quarter of 2010 of US$15.8 million (MOP126.4 million), compared with a net loss of US$39.5 million, in the third quarter of 2009. The improvement in “bottom line results was driven by a significant year-over-year improvement in the operating performance at City of Dreams, partially offset by increased depreciation and amortization expense associated with the opening of the Grand Hyatt and The House of Dancing Water, and higher net interest expense related to the refinancing of approximately US$600 million of bank debt”, the company said. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) was a record US$136.3 million for the third quarter of 2010, as compared to adjusted EBITDA of US$55.6 million in the third quarter of 2009. Lawrence Ho, co-chairman and chief executive officer of Melco Crown Entertainment, commented: "We are pleased to report record net revenue and record adjusted EBITDA during the third quarter of 2010. These milestones are driven by continued progress in expanding our mass market gaming volumes and by further success in our already robust VIP business, along with a favourable rolling chip hold percentage in the third quarter of 2010. "We opened The House of Dancing Water in September and it has been well received by the market and our guests. This is one of several new amenities that we plan to introduce into City of Dreams over the coming months, including Cubic nightclub and Hard Rock Cafe. We believe that these amenities, against a backdrop of solid market growth, will continue to drive improving gaming volumes at City of Dreams.” Mr Ho said that: “Though our new operating management structure has only been in place for approximately two months, we are encouraged by its initial impact on our business and are already seeing tangible results from its implementation.”
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