Melco Crown Entertainment Ltd. announced earlier today its financial results for the three-month period ended March 31, 2015. The company operates integrated resorts across Asia and is known to be one of the six licensees authorized to provide services in Macau.
Total net revenue was down 22% to $1.05 billion during the reported period. The drop was mainly attributed to the decrease in rolling chip and mass market table games revenues.
Adjusted property EBITDA amounted to $253.3 million during the reported period compared to $387.5 million posted for the first quarter of 2014. The decline was attributed to a decrease in rolling chip volumes and rolling chip win rate, as well as to a drop in mass market table games revenue.
Currently, the company operates City of Dreams on Macau’s Cotai Strip, Altira Macau, Mocha Clubs, and City of Dreams Manila.
City of Dreams generated net revenue of $805.9 million compared to $1.07 billion for the first quarter of 2014. Adjusted EBITDA totaled $235.8 million for the reported period, down 31% from what was posted a year ago.
Net revenue at Altira Macau amounted to $148.7 million. By comparison, net revenue of $229.8 million was reported last year. The property generated adjusted EBITDA of $6.8 million during the first quarter of 2015. The amount of $34.8 million was posted for the same period a year ago.
Mocha Clubs, a chain of gaming clubs across Macau, reported net revenue of $34.9 million for the three months ended March 31. In comparison, $39.5 million were generated last year. Adjusted EBITDA decreased $3 million year-on-year to $8.3 million.
City of Dreams Manila, which had its soft opening in December 2014 and was officially launched in February 2015, posted net revenue of $52.7 million. Adjusted EBITDA for the first quarter of this calendar year totaled $2.9 million.
Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, said that he was pleased with the company’s “solid operating and financial performance”, despite the fact that the demand environment in Macau has been quite challenging in the past year.
The executive also pointed out that the hotel and casino operator would remain focused on providing “multi-faceted” customer experience and maximizing customer loyalty. Mr. Ho stated that Melco Crown has always supported the Government of Macau’s endeavor to turn the city not only into a world-class gambling destination, but also into a leisure and tourism one.
Melco Crown’s CEO also revealed that the construction of Studio City, an integrated resort, which is to be located on the Cotai Strip, is on schedule and on budget. However, no official opening date was announced. Apart from its casino floor, Studio City is planned to feature a large family entertainment center, a TV production studio, the highest Ferris wheel in Asia, etc.
