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

MacauThursday, Mar 23, 2017

Wynn Macau will raise the wages of non-management staff by between 3 percent and 6.5 percent, the company said.

Macau, PhilippinesWednesday, Mar 22, 2017

Gaming suppliers, facing the challenge of changing audience demographics and new technology, need to move to “bigger and brighter” machines to lure clients into casinos, industry experts say.

MacauWednesday, Mar 22, 2017

Melco Crown Entertainment has followed Macau rivals in announcing a pay rise for non-management employees, as analysts warn cost pressures in the territory are on the rise again.

MacauMonday, Mar 20, 2017

Macau’s casino operators are likely to facing increasing margin pressure in 2017 as overall costs rise and promotional pressures gain with the uptick in VIP gaming, Morgan Stanley wrote in a note.

MacauMonday, Mar 20, 2017

Authorities suspect foul play in a fire that broke out at the construction site of SJM Holding’s new casino on Cotai, the Grand Lisboa Palace, local media reports.

MacauMonday, Mar 20, 2017

Sands China said its board has recommended a final dividend of HK$1.00 ($0.13) per share for 2016, unchanged from the prior year.

MacauMonday, Mar 20, 2017

Bernstein has revised its GGR estimates for the first quarter of 2017, forecasting 10 percent growth, led by 12.5 percent growth in VIP and 9 percent growth in mass.