Melco Crown Entertainment has just officially announced its 3Q financial report. It appears that the performance of the renowned owner of casino gaming facilities, based predominantly in Macau, failed to meet the forecasts of Zacks’ analysts, concerning both its profits and turnover. And this was undoubtedly due to the overall complicated situation in the Chinese administrative region, known to be a particularly popular gambling hub. But despite the poor results, the company demonstrated a 0.4% rise in the price of shares, purchased in the aftermarket hours. The most probable reason for this is that investors might have been detecting some stability in the undifferentiated market.
Melco reported that its pro-forma earnings amounted to 28 cents per share, despite Zacks’ prognosis for 29 cents per share. What is more, this year’s earnings fell by 15 percent as compared to last year’s 33 cents per share.
Although Zacks’ experts predicted net profits of $1.15 billion for this third quarter, Melco announced them to be $1.12 billion as opposed to $1.27 billion in 2013. All segments were affected mainly because of the decreased turnover from VIP players and the increased turnover from table games, intended for mass market.
The company’s EBITDA amounted to $305.7 million, marking a 10% decline as opposed to last year’s 3Q. This was mainly due to an overall decrease in both the turnover from VIP players as well as the win rate of rolling chips. Mass-market intended games, however, indicated a rise.
Melco’s Top Facilities’ Performance
City of Dreams, Altira Macau, and Mocha Clubs are Melco’s most profitable facilities, providing countless accommodation, gaming and other entertainment options to their visitors. And here is how they performed in the last three months.
According to Melco’s financial statement, City of Dreams’ net income of $911.6 million fell by almost 5% as compared to last year. Earnings before interest, taxes, depreciation, and amortization totaled $276 million, which was 8% less than those in 2013. As already mentioned, the reason for the decrease was rooted in the fall in both rolling chip volume and win rate and the increase in hold percentage and non-VIP intended table games turnover. The volume of rolling chips generated the sum of $17.3 billion, which was almost $4.2 billion less than last year.
As for Altira Macau, its net income amounted to $160.4 million, marking a 33.8-percent fall as compared to 2013. The fall in the rolling chips turnover brought about a 32% year-on-year decline in the EBITDA. In other words, the earnings barely reached $20.3 million in the past three months. A decline was also marked in the rolling chip volume, adding up to a total of $7.2 billion, as compared to last year’s sum of approximately $10 billion. A small 0.3-pecent fall in turnover from games, intended for non-VIP players, totaling $181.4 million, was also marked.
Mocha Clubs’ net income, amounting to $38.5 million, showed a 0.2-percent drop as compared to last year. Adjusted earnings added up to $9.9 million, 11% less than those generated in the former year’s third quarter.
