Melco Resorts and Entertainment Ltd (MLCO)

[MCArmel1]

Melco Crown Entertainment misses by $0.05, misses on revenue

Nov 5 2015, 08:12 ET | About: Melco Crown Entertainme... (MPEL) | By: Mohit Manghnani, SA News Editor

Melco Crown Entertainment (NASDAQ:MPEL): Q3 EPS of $0.06 misses by $0.05.

Revenue of $945.7M (-15.6% Y/Y) misses by $8.09M.

Press Release

http://seekingalpha.com/news/2901256-melco-crown-entertainment-misses-by-0_05-misses-on-revenue?uprof=45#email_link


Melco Crown Entertainment Announces Unaudited Third Quarter 2015 Earnings and Declares Quarterly Dividend
Thu November 5, 2015 8:10 AM|GlobeNewswire | About: MPEL

MACAU, Nov. 05, 2015 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited (MPEL) (Melco Crown Entertainment or the Company or we), a developer, owner and operator of casino gaming and entertainment resort facilities in Asia, today reported its unaudited financial results for the third quarter of 2015.


Net revenue for the third quarter of 2015 was US$945.7 million, representing a decrease of approximately 16% from US$1,124.1 million for the comparable period in 2014. The decline in net revenue was primarily attributable to lower rolling chip revenues and mass market table games revenues in Macau, partially offset by the net revenue generated by City of Dreams Manila, which started operations in December 2014.

Adjusted property EBITDA(1) was US$237.3 million for the third quarter of 2015, as compared to Adjusted property EBITDA of US$305.7 million in the third quarter of 2014. The 22% year-over-year decline in Adjusted property EBITDA was attributable to lower contribution from the group-wide rolling chip segment and mass market table games segment.

On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the third quarter of 2015 was US$33.2 million, or US$0.06 per ADS, compared with net income attributable to Melco Crown Entertainment of US$132.2 million, or US$0.24 per ADS, in the third quarter of 2014. The net loss attributable to noncontrolling interests during the third quarter of 2015 of US$34.1 million was related to Studio City and City of Dreams Manila.

Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, Our results in the third quarter of 2015 were impressive, particularly given the challenging demand backdrop in Macau, with our Macau Property EBITDA expanding over 10% sequentially. This performance highlights our world-class gaming and non-gaming amenities and market-leading, premium-positioned flagship integrated resort, City of Dreams, together with our ongoing commitment to managing costs.

Our ability to compete strongly in the mass segment in a disciplined manner and our strict approach to cost management, particularly in marketing, player reinvestment and payroll expenses, is demonstrated by a greater than 200 basis point increase in our Macau Property EBITDA margins during the recent quarter.

I am delighted to announce the recent successful opening of our highly anticipated integrated resort in Macau, Studio City, which brings to Macau the most diversified entertainment-focused property ever contemplated in Macau. Our newest large-scale property represents a major milestone for our Company that enables us to further diversify our offering of entertainment-focused non-gaming attractions, which are unrivalled in Macau.

Studio City features a wide array of entertainment options for visitors of all ages to enjoy. The art-deco inspired façade houses the iconic Golden Reel the worlds only figure-8 Ferris wheel, as well as a 4D flight simulation ride, Batman Dark Flight; a 40,000-square-foot family entertainment center, Warner Bros. Fun Zone; an incredible live magical experience showcasing the world's greatest magicians, The House of Magic; Macaus first-ever Ibiza-style nightclub, Pacha Macau; and a 5,000-seat multi-purpose entertainment center, Studio City Event Center, hosting exciting live concerts, theatrical and top sports offerings in addition to award shows and other special feature events.

The property also delivers world-class accommodation at the approximately 1,600-room Studio City Hotel, and a diverse range of international restaurants, cafes and relaxed bars and lounges. Studio City also significantly expands our Companys retail capacity in Macau with over 35,000 square meters of distinctive retail showcasing sophisticated and prestigious fashion brands.

Studio Citys location directly adjacent to the Lotus Bridge immigration point, which connects with Hengqin Island, and a future station-point for the Macau Light Rapid Transit, provides a strategic location in Cotai, enabling the property to enjoy ideal access to visitors from the fast growing and increasingly important Hengqin Island.

We anticipate that Studio City will provide a strong complement to our current operating assets in Macau, allowing us to deepen our customer mix. The opening of Studio City highlights our Companys commitment to help evolve and greatly enhance Macaus non-gaming entertainment proposition, which in turn supports Macaus evolution into a multi-faceted entertainment destination. Studio City also deepens our investment in the local community by offering unique and rewarding career opportunities not currently available in Macau.

We thank the Macau and Central governments for their support and recognition of our Companys contribution to the true diversification of Macau into a world leading leisure and tourism destination.

In Manila, City of Dreams delivered 93% sequential growth in Property EBITDA, as a result of strong traction in the rolling chip segment and further expansion of its mass table and slot machine revenue. Hotel occupancy was maintained at a high 88% for the quarter. City of Dreams Manila maintained strong visitation statistics, leading all other integrated resorts in Manila, as its unique array of gaming and entertainment offerings continued to captivate patrons, both domestic and international. We believe that City of Dreams Manila is well positioned for long term success as Manila transforms into an exciting and diverse tourism destination for the region.

City of Dreams Third Quarter Results

For the quarter ended September 30, 2015, net revenue at City of Dreams was US$665.6 million compared to US$911.6 million in the third quarter of 2014. City of Dreams generated Adjusted EBITDA of US$191.5 million in the third quarter of 2015, representing a decrease of 31% compared to US$276.0 million in the comparable period of 2014. The decline in Adjusted EBITDA was primarily a result of lower rolling chip revenues and mass market table games revenues.

Rolling chip volume totaled US$9.3 billion for the third quarter of 2015 versus US$17.3 billion in the third quarter of 2014. The rolling chip win rate was 2.9% in the third quarter of 2015 versus 2.7% in the third quarter of 2014. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop decreased to US$1,190.3 million compared with US$1,340.4 million in the third quarter of 2014. The mass market table games hold percentage was 35.1% in the third quarter of 2015 compared to 38.9% in the third quarter of 2014.

Gaming machine handle for the third quarter of 2015 was US$1,211.3 million, compared with US$1,551.7 million in the third quarter of 2014.

Total non-gaming revenue at City of Dreams in the third quarter of 2015 was US$66.8 million, compared with US$74.2 million in the third quarter of 2014.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2015, net revenue at Altira Macau was US$140.3 million compared to US$160.4 million in the third quarter of 2014. Altira Macau generated Adjusted EBITDA of US$13.3 million in the third quarter of 2015 compared with Adjusted EBITDA of US$20.3 million in the third quarter of 2014. The year-over-year decrease in Adjusted EBITDA was primarily a result of lower rolling chip revenues.

Rolling chip volume totaled US$5.2 billion in the third quarter of 2015 versus US$7.2 billion in the third quarter of 2014. The rolling chip win rate was 3.0% in the third quarter of 2015 versus 2.7% in the third quarter of 2014. The expected rolling chip win rate range is 2.7%-3.0%.

In the mass market table games segment, drop totaled US$156.7 million in the third quarter of 2015, a decrease from US$181.4 million generated in the comparable period in 2014. The mass market table games hold percentage was 19.4% in the third quarter of 2015 compared with 16.2% in the third quarter of 2014.

Gaming machine handle for the third quarter of 2015 was US$11.2 million.

Total non-gaming revenue at Altira Macau in the third quarter of 2015 was US$8.1 million compared with US$9.0 million in the third quarter of 2014.

Mocha Clubs Third Quarter Results

Net revenue from Mocha Clubs totaled US$36.1 million in the third quarter of 2015 as compared to US$38.5 million in the third quarter of 2014. Mocha Clubs generated US$8.5 million of Adjusted EBITDA in the third quarter of 2015 compared with US$9.9 million in the same period in 2014.

The number of gaming machines in operation at Mocha Clubs averaged approximately 1,200 in the third quarter of 2015, compared to approximately 1,300 in the comparable period in 2014. The reduction in gaming machines reported by Mocha Clubs was primarily due to the transfer of the reporting of one club to Altira Macau in 2015. The net win per gaming machine per day was US$318 in the third quarter of 2015, as compared with US$306 in the comparable period in 2014.

City of Dreams Manila Third Quarter Results

For the third quarter of 2015, net revenue at City of Dreams Manila was US$91.7 million. City of Dreams Manila generated Adjusted EBITDA of US$24.4 million in the third quarter of 2015.

Rolling chip volume totaled US$1.2 billion for the third quarter of 2015. The rolling chip win rate was 2.9% in the third quarter of 2015. The expected rolling chip win rate range is 2.7%-3.0%.

Mass market table games drop was US$116.7 million and the mass market table games hold percentage was 27.0% in the third quarter of 2015.

Gaming machine handle for the third quarter of 2015 was US$508.4 million. The number of gaming machines in operation at City of Dreams Manila averaged approximately 1,700 in the third quarter of 2015. The net win per gaming machine per day was US$184 for the third quarter of 2015.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2015 was US$26.4 million.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2015 were US$34.6 million, which mainly included interest income of US$4.2 million and interest expenses, net of capitalized interest, of US$23.2 million, US$9.5 million of other finance costs and US$6.5 million of net foreign exchange loss. We recorded US$40.3 million of capitalized interest during the third quarter of 2015, primarily relating to Studio City and the fifth hotel tower at City of Dreams.

The year-on-year decrease of US$4.2 million in net non-operating expenses was primarily due to higher capitalized interest in the current quarter, partially offset by higher interest expenses resulted from the drawdown of the Studio City US$1.3 billion term loan facility in late July 2014.

Depreciation and amortization costs of US$114.3 million were recorded in the third quarter of 2015, of which US$14.3 million was related to the amortization of our gaming subconcession and US$16.1 million was related to the amortization of land use rights.

More...

http://seekingalpha.com/pr/15253756-melco-crown-entertainment-announces-unaudited-third-quarter-2015-earnings-and-declares-quarterly-dividend