Studio City, COD Manila boost Melco results

Melco Crown Entertainment posted a 13 percent gain in Q4 revenue as an improved performance at Studio City and City of Dreams Manila offset declines at its older properties.

Revenue came in at $1.19 billion, up from $1.05 billion a year earlier, in line with consensus estimates.

Adjusted property EBITDA was $304.3 million as compared to $236.4 million in the fourth quarter of 2015, representing an increase of 29 percent. Net income gained to $43.3 million, or $0.09 per ADS, compared with a net loss of $12.3 million, or $0.02 per ADS a year earlier.

“We delivered a strong set of results in the fourth quarter of 2016, highlighted by record mass table gross gaming revenues in Macau and a 29 percent year-on-year increase in group-wide adjusted property EBITDA,” said Chairman and CEO Lawrence Ho.

“Studio City’s mass table games revenues continued to expand, increasing almost 10 percent from the prior quarter which, combined with the rolling chip operations that began in November 2016, delivered a strong improvement in underlying earnings.”

Ho said Macau shows signs of a broader recovery going into 2017.

Net revenue at City of Dreams Macau was $661.1 million compared to $669.0 million in the fourth quarter of 2015, while adjusted EBITDA was $188.7 million, a decrease of 2%.

At Studio City revenue doubled to $246.2 million compared to US$123.2 million, while adjusted EBITDA gained to $56.7 million from $12.6 million.

City of Dreams Manila saw revenue jump to $144.7 million compared to $80.9 million, with adjusted EBITDA reaching $50.2 million from $15.5 million.

“City of Dreams performed slightly weaker than expected, largely due to low VIP hold,” said Bernstein in a note on Friday. “Studio City's ramp up is weaker than expected with Property EBITDA up 8 percent quarter-on-quarter to $57 million, largely because of a low 1.4 percent VIP hold rate.  Both of Mocha and Altira showed decline in revenue and EBITDA, which was not unexpected,” it added.

More news from this jurisdiction

MacauFriday, Aug 18, 2017

The MGS Entertainment Show, which is backed jointly by the Macau SAR Government and the largest 150 gaming and entertainment companies in Asia, will challenge conventional thinking in the agenda for its annual summit at the Venetian Macao, November 14-16, 2017.

MacauThursday, Aug 17, 2017

A substantial shareholder of Amax International Holdings has questioned the casino investor about its recent acquisition of AR/VR technology business, Explicitly Grand Investment Ltd in July.

MacauThursday, Aug 17, 2017

Gaming-focused brokerage Bernstein Research has downgraded SJM to underperform (from market-perform), due to an expected delay in its Grand Lisboa Palace and ramp up challenges.

MacauWednesday, Aug 16, 2017

MGM’s annual summer program, “A Day with MGM,” was held at MGM Macau’s Vista on Wednesday, according to a press release from the operator.

MacauTuesday, Aug 15, 2017

Wynn Resorts has been upgraded to buy from hold by analysts at Deutsche Bank due to a ramp up in the mass sector at Wynn Palace after floor reconfigurations and ongoing strength in the VIP market.

MacauTuesday, Aug 15, 2017

Sands China has joined the group’s volunteer effort to build 100,000 hygiene kids for Clean the World to help improve the health and wellbeing of people in need.

MacauMonday, Aug 14, 2017

MGM Resorts says it plans to attract more recreational gamblers than VIPs in its new Cotai property, which opens in the fourth quarter of this year.