Melco Crown Q4 revenue, earnings tumble; Studio City on track

Melco Crown Entertainment posted Q4 results that missed expectations as both rolling chip revenue and mass market revenue declined.
Net revenue for the fourth quarter of 2014 was US$1.12 billion, representing a decrease of approximately 20 percent and slightly behind forecasts for $1.13 billion. Casino revenue was $1.08 billion down from $1.35 billion.
Adjusted net income per diluted ADS was $0.22, missing estimates for $0.27, according to Capital IQ.
 The decline in net revenue was primarily attributable to lower group-wide rolling chip revenues and mass market table games revenues. Adjusted property EBITDA was $278.6 million, as compared to $394.4 million a year ago.
“While 2014 was a challenging year for Macau, I am pleased with both our relative operating performance and the meaningful advancements we have made towards realizing our significant growth pipeline, positioning us to succeed now and in the future,” Co-Chairman and Chief Executive Officer Lawrence Ho said.
Net revenue at City of Dreams Macau was $895.5 million compared to $1.1 billion in the fourth quarter of 2013.
Rolling chip volume at the property totaled $18.0 billion down from $25.6 billion in the fourth quarter of 2013. The rolling chip win rate was 2.8 percent in the fourth quarter of 2014 versus 3.0 percent in the fourth quarter of 2013.
Mass market table games drop edged up to $1.31 billion compared with $1.3 billion. The mass market table games hold percentage was 36.4 percent compared to 37.6 percent a year ago.
At Altira Macau revenue was $173.1 million compared to $247.6 million in the fourth quarter of 2013. Rolling chip volume totaled $8.1 billion in the fourth quarter of 2014 versus $10.6 billion, while mass market table games segment, drop totaled $174.7 million in the fourth quarter of 2014, a decrease from $205.2 million.
Ho said the company’s new Studio City property was scheduled to open on time and on budget in the third quarter of this year, with investment of $2.3 billion.
“We believe Macau shares are close to bottoming and MPEL, as the investor-viewed “pure-play,” should benefit more than other names on the heels of any positive market sentiment shift,” Sterne Agee analyst David Bain wrote in a note. “MPEL’s opening of Macau Studio City, the next new full opening in Macau matches with easy back-half market comparables. MPEL’s valuation continues to be well below all US-listed Macau peers.”