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Melco Crown Entertainment Announces Third Quarter 2011 Earnings
Thursday , November 10, 2011 07:53ET
NEW YORK, Nov. 10, 2011 (GLOBE NEWSWIRE) -- Melco Crown Entertainment Limited (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, today reported its unaudited financial results for the third quarter of 2011.
Net revenue for the third quarter of 2011 was US$1,056.0 million, representing an increase of approximately 45% from US$727.0 million for the comparable period in 2010. The increase in net revenue from the third quarter of 2010 was primarily a result of group-wide increases in rolling chip and mass market gaming volumes, significant improvements in mass market hold rates, and meaningful contributions from hotel sales, food and beverage outlets and other non-gaming amenities, including a full quarter of contribution from The House of Dancing Water.
Adjusted EBITDA<1> was US$240.3 million for the third quarter of 2011, an increase of 76% from US$136.3 million of Adjusted EBITDA in the third quarter of 2010. The significant increase in profitability was driven by the continued and sustained improvements in mass market operations at City of Dreams, strong rolling chip volumes at both City of Dreams and Altira Macau along with a consistent approach to junket commissions, and strong contributions from non-gaming segments, such as hotel, food and beverage and The House of Dancing Water, while maintaining our ongoing company-wide cost control focus.
On a U.S. GAAP basis, net income attributable to Melco Crown Entertainment for the third quarter of 2011 was US$113.3 million, or US$0.21 per ADS, compared with net income attributable to Melco Crown Entertainment of US$15.8 million, or US$0.03 per ADS, in the third quarter of 2010. Record net income for the third quarter of 2011 was primarily attributable to ongoing improvements in gaming and non-gaming operations across all operating segments, particularly at City of Dreams, partially offset by increased interest costs from the high yield and RMB denominated bonds, higher depreciation associated with The House of Dancing Water, increased amortization relating to Studio City's land use rights and transaction costs attributable to the proposed Hong Kong dual listing. The net loss attributable to non-controlling interests during the third quarter of 2011 of US$2.1 million was related to Studio City.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, "I am delighted to announce another quarter of record Adjusted EBITDA and net income for our Company, representing the ninth consecutive quarter of sequential improvement in hold-adjusted EBITDA. These results build on the significant achievements delivered through the first half of 2011 and demonstrate our ability to deliver sustained high-quality results, with strong company-wide performance across all segments, despite the introduction of additional supply in the market.
"We continue to show our ability to execute on our premium strategy in both the mass market and VIP segments by focusing on providing premium quality service, unique entertainment experiences and products to our target customer base, supported by world class and best of breed facilities and attractions at City of Dreams and Altira Macau. This diversified portfolio enables us to capture the rapidly expanding Macau gaming market and target multiple customer segments.
"Our Studio City project continues to move closer towards realization. We are nearing the final stages of our design plans, while working closely with the Macau Government to complete the necessary approval process. We also continue to evaluate financing plans in relation to this project, including a bank loan and other debt financing. This exciting new development further demonstrates our confidence in the region's long term growth prospects and our desire to support and meaningfully contribute to the development and diversification of the leisure and tourism offering in Macau, while creating career opportunities for our team members and driving shareholder value. Moreover, this project will complement our current portfolio of assets and will meaningfully increase our presence in Cotai.
"In relation to our previously announced proposed dual-listing on the Hong Kong stock exchange, we continue to work through the necessary steps with the relevant Hong Kong regulators, while at the same time monitoring the market conditions to ensure we maintain full flexibility as it relates to our capital structure."
City of Dreams 3Q Results
For the third quarter of 2011, net revenue at City of Dreams was US$687.2 million compared to US$504.0 million in the comparable period in 2010, an increase of 36%. City of Dreams generated Adjusted EBITDA of US$170.5 million in the third quarter of 2011, an increase of 48% when compared to US$114.9 million in the third quarter of 2010.
The year-over-year improvements were driven by a significant increase in rolling chip and mass market volumes, meaningful and sustainable improvements in mass market hold percentages, as well as strong contributions from hotel sales and The House of Dancing Water, partially offset by a lower win rate in the rolling chip segment.
Rolling chip volume for the third quarter of 2011 totaled US$20.3 billion, an increase of 41% from US$14.4 billion from the third quarter of 2010. The rolling chip win rate was 3.1% in the third quarter of 2011, lower than the win rate in the comparable quarter in 2010 of 3.4%, and slightly above the expected range for rolling chip win rate of 2.7% - 3.0%.
Mass market table games drop for the third quarter of 2011 totaled US$730.8 million, an increase of 40% from US$523.7 million for the comparable period in 2010. The mass market hold percentage was 25.5% in the third quarter of 2011, a significant increase from 21.3% in the third quarter of 2010. At City of Dreams, we expect our mass market table games hold percentage to range from 23%-26%.
Slot handle for the third quarter of 2011 was US$530.2 million, up 21% from US$437.3 million for the comparable period in 2010.
Total non-gaming revenue at City of Dreams in the third quarter of 2011 was US$55.1 million, an increase of 74% from US$31.7 million for the third quarter of 2010. Occupancy per available room in the third quarter of 2011 was 93% versus 77% in the third quarter of 2010. The average daily rate (ADR) in the third quarter of 2011 was US$170 per occupied room, which compares with US$158 in the comparable quarter of 2010.
Altira Macau 3Q Results
For the third quarter of 2011, net revenue at Altira Macau was US$329.0 million compared to US$186.8 million in the third quarter of 2010, an increase of 76%. Altira Macau generated Adjusted EBITDA of US$78.9 million in the third quarter of 2011, an increase of 174% when compared to Adjusted EBITDA of US$28.8 million in the third quarter of 2010. The significant increases in net revenues and Adjusted EBITDA were driven by substantially improved rolling chip volumes and an increased rolling chip win rate.
Rolling chip volume totaled US$13.2 billion in the third quarter of 2011, an increase of 39% from US$9.5 billion for the third quarter of 2010. The rolling chip win rate was 3.2%, compared to a win rate of 2.7% for the same period in 2010, and above the expected rolling chip win rate of 2.7%-3.0%.
Mass market table games drop totaled US$149.9 million in the third quarter of 2011, an increase of 55% from US$97.0 million generated for the comparable period in 2010. The mass market hold percentage was 15.7% in the third quarter of 2011 compared with 17.6% in the third quarter of last year. At Altira Macau, we expect our mass market table games hold percentage to range from 15.0%-17.0%.
Total non-gaming revenue at Altira Macau in the third quarter of 2011 was US$7.9 million, up slightly from the third quarter of 2010. Occupancy per available room in the third quarter of 2011 was 98% compared to 95% in the third quarter of 2010. ADR was US$192 per occupied room, compared to US$161 in the same period of 2010.
Mocha Clubs 3Q Results
Net revenue from Mocha Clubs totaled US$31.3 million in the third quarter of 2011, an increase of 13% from US$27.8 million in the comparable period of 2010. Mocha Clubs generated US$8.9 million of Adjusted EBITDA in the third quarter of 2011, an increase of 17% when compared to Adjusted EBITDA of US$7.6 million in the same period in 2010.
The number of gaming machines in operation at Mocha Clubs averaged approximately 1,600 in the third quarters of 2011 and 2010. The net win per gaming machine per day was US$208 in the third quarter of 2011, as compared with US$189 in the same period in 2010, an increase of 10%.
Other Factors Affecting Earnings
Total non-operating expense for the third quarter of 2011 totaled US$36.9 million, which included US$30.7 million in net interest expense, other finance costs of US$3.4 million, a US$2.7 million loss on foreign exchange in relation to our offshore cash balances, as well as transaction costs of US$4.2 million associated with the proposed Hong Kong listing, partially offset by US$3.3 million gain in relation to a change in fair value of an existing interest rate swap arrangement. There was no capitalized interest during the third quarter of 2011.
Depreciation and amortization totaled US$90.2 million in the third quarter of 2011, of which US$14.3 million was related to the amortization of our gaming sub-concession and US$10.7 million was related to the amortization of land use rights. The year-over-year increase in depreciation and amortization costs is primarily related to a full quarter of depreciation of The House of Dancing Water, as well as from amortization of Studio City's land use rights.
Financial Position and Capital Expenditure
Cash and cash equivalents as of September 30, 2011 totaled US$1,450.5 million including US$360.1 million of restricted cash. Total debt at the end of the third quarter of 2011 was US$2.4 billion, and total net debt to shareholders' equity as of September 30, 2011 was 33%.
Capital expenditures for the third quarter of 2011 totaled US$22.6 million, of which US$8.1 million related to design and preliminary costs associated with Studio City, US$4.9 million for the development of the new Mocha site, with the remainder predominantly attributable to various projects at City of Dreams.
Nine Month Results
For the nine months ending September 30, 2011, Melco Crown Entertainment reported net revenue of US$2.8 billion as compared with US$1.9 billion in the nine months ending September 30, 2010. Adjusted EBITDA for the first nine months of 2011 was US$577.9 million, an increase of 95% as compared with Adjusted EBITDA of US$296.6 million in the first nine months of 2010.
The year-over-year improvements in net revenue and Adjusted EBITDA were primarily driven by significantly improved gaming and non-gaming operating results at both City of Dreams and Altira Macau.
Net income attributable to Melco Crown Entertainment for the first nine months of 2011 was US$187.1 million, as compared with a net loss of US$26.8 million for the first nine months of 2010. The net income per ADS attributable to Melco Crown Entertainment for the nine month period ending September 30, 2011 was US$0.35 compared to a net loss per ADS of US$0.05 for the comparable period in 2010.
Continued at:
http://www.knobias.com/story.htm?eid=3.1.8b088bffbce18e9a7d6d6687ab4950c9844853703de350175c99c44821875dd4
I bailed today thinking a dip might be coming...I dont like fridays anyway so I dont have to watch tomarrow....
It is nice....I'll be here as long as the market looks good...
Love to see this climb :)
Yeah, I think now through the winter is best time for casino companies IMO...
Yeah , I was getting ready to buy at 15.00 and it started down with the market, so I waited untill bottom hit...GLTY
Glad I just caught the dip.... in at 7.82 looking good! :)
Not bad for friday...Down 6 cents....ZzzzzZZZzzZzZZ..
Yeah buddy, I love this stock...Been waiting a long time for a good entry on this... :)
MPEL...8.00 looks like great entry point to me...
anyone know what is going on with this stock....i have heard it is setting up for a plunge??
Melco Crown up on initiation at Outperform at Macquarie, resistance at $13.14 (TheFlyOnTheWall)
Jun 29, 2011 7:37:00 AM
news on yahoo just hit mpel is on the move on the hong kong exchange
i love it tomorrow or should i say today we gap up
Thanks for keeping me in mind Minddoc -- I think we see a double by Christmas - From someone living in this part of the world, I think this is the beginning of a VERY profitable summer gambling season in Macau.
FYI...
DJ MARKET TALK:Melco Crown May Beat Rivals To Cotai Via Studio City-CS
03/06/2011 11:06 | Galaxy Enter. Group
1006 GMT [Dow Jones] Credit Suisse's new pecking order in Macau is Melco Crown (MPEL), SJM (0880.HK), Sands China (1928.HK), MGM China (2282.HK), Wynn Macau (1128.HK) and then Galaxy (0027.HK). It keeps the first 3 at Overweight, the last 2 Neutral and starts newly listed MGM China at Neutral. "While MGM China, SJM, and Wynn Macau have all applied to the Macau government to start new projects in Cotai, we believe MPEL may surprise by opening a new project ahead of the three operators mentioned," writes analyst Gabriel Chan. Melco Crown is "likely to get Macao Studio City which, in our view, will be a powerful re-rating catalyst, countering concerns about the lack of future growth drivers." Macao Studio City is a third-party casino project for which MPEL obtained the rights to operate the casino business on a revenue sharing basis. The project has been on hold amid a dispute among its stakeholders. It raises target on MPEL to US$14.60 from US$12.70, without pricing in any earnings potential from Studio City or a new hotel tower at MPEL's City of Dreams property. MPEL closed 0.2% higher at US$11.84 in the U.S. Thursday. (kathryn.okeeffe@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
Thanks, Minddoc, I like the last paragraph, it says it all.
Wall Street Journal Article....
From below linked article:
Macau's May revenue was at the high end of a May 26 forecast from Bank of America Merrill Lynch for gambling revenue to hit between 23 billion patacas and 24 billion patacas last month. Analyst Billy Ng said the strong growth was partly due to the May 15 opening of Galaxy Entertainment Group Ltd.'s new casino resort in Macau's Cotai area.
"We see Galaxy Macau driving traffic and injecting new VIP liquidity, with growth in both mass (market) and VIP for the rest of 2011," Mr. Ng wrote.
http://online.wsj.com/article/SB10001424052702303745304576358614169648994.html
Macau May's gambling up 42%
Macau says gambling revenue surges 42 pct in May HONG KONG, June 1 | Wed Jun 1, 2011 12:39am EDT
HONG KONG, June 1 (Reuters) - Gambling revenue in Macau, the world's largest gaming market, jumped 42.4 percent in May to 24.3 billion patacas ($3 billion), the Macau government said on Wednesday, bolstered by unabated demand from mainland tourists eager to gamble in China's only legal casino destination.
Does anyone on this board know about the new casino that opened up recently on Cotai? Galaxy Entertainment GXYEF. I have been watching it and so far not much activity on message boards and stock market.
Today's doji is worrisome, but imminent MACD crossover negates much of my worry. I think we see a little downside, and then the crossover and a,great, summer of appreciation.
Good week for MPEL. Nice positive trending. I am in at an average pps of $4.30 and still holding LONG. Glad I held during that apparent shake out following earnings. Memorial Day Holiday on Monday so Markets will be closed here in America.
Good luck trading!
I can't believe the congruency of Your thoughts to mine. On the HK trades, today, Melco was the only gaming stock to finish green.
I think, that those who can stomach volatility, will be richly rewarded. Summertime is here, and I, DO, believe that there will be much action, during the next couple of months.
I am hoping for double by year end (if not sooner). I am overweight silver, and would like to deploy half of MPEL double into some gold and more oil and natural gas.
Your friend,
mark
I, too, was tempted to sell some MPEL early in the day, but did not. I made that mistake with LVS. Since I have a very good understanding of addictive behavior, I used the recession to load up on LVS because of it's depressed pps. Sold after doubling my money and then watched it go to $50.00+ a share! Started looking for another depressed gaming stock and found MPEL. Liked the fact that it was located in a dynamic and growing region that catered to a cultural population known for it's gambling propensity. IMO, we will continue to see the pps increase, but not without some pull backs. As Mr. Buffett says, invest in what you know. I know people who gamble will continue to gamble and will do so with increasing frequency as the economic environment improves. GLTA!!!
Not too bad, at all.
Was, sorely, tempted to sell some, at the open ( and deploy, elsewhere), but decided to hold all.
Most of my problems, in the market, have been selling, when I should have held.
It's 7:00 am, here in Japan, and I have to run.
Perhaps, when I return, I'll find some words, from You, as to where You see MPEL going, in the future.
Thanks, for being around, to engage in discourse with me, concerning my largest holding.
Your friend,
mark
Not too bad considering how the pre market reacted. GLTA!!!
Thanks, Minddoc.
They were down in Chinese trading today, and consensus opinion on the Yahe*l board is that they're gonna miss by a penny, in about forty-five minutes, further shredding my dilapidated portfolio.
Looking fairly strong since your post. Sentiment seems to be positive, but tomorrow morning will tell. GLTA!!!
Holding nearly a year now -- just discovered this board -- ANY thoughts on weakness leading up to earnings, would be GREATLY appreciated.
Many TIA.
mark
Here you go from today's PR....
Melco Crown Entertainment Announces Earnings Release Date GlobeNewswire
Melco Crown Entertainment Limited (Nasdaq:MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, today announced that it will file its first quarter results for 2011 on Form 6-K with the U.S. Securities and Exchange Commission on May 19, 2011, to be followed by a conference call on the same day at 8:30 a.m. Eastern Time (or 8:30 p.m. Hong Kong Time).
nice we touched the 52 week high
mpel will be 15 dollars short term and we will see a 2 to 3 dollar pop in 1 day before or next week
can anyone tell me when earnings are im now hearing mid may
great news today why is the stock down also when is earnings being released is it thursday? or tomorrow
EARNINGS UPDATE: MELCO CROWN ENTERTAINMENT RELEASES ITS QUARTERLY EARNINGS ON APRIL 28, 2011 (MPEL)
ASIANS love to gamble this stock use to be in the 30's plus
this might go to 20 over next 6 months
its on a uptrend for months this one is ready to pop in a big way
I hope you are hearing correctly
im hearing 15 with earnings this coming week
Very quiet board here
Im on board
GO MPEL!!!
9.50 and to the moon.
SHould be Raised Again
Will follow LVS now
Melco Crown Entertainment Target Raised To $6.50 Vs $4.65
Last update: 10/21/2010 3:26:05 AM(END)
Dow Jones NewswiresOctober 21, 2010 03:26 ET (07:26 GMT)
Melco Crown Target Raised To US$6.10 Vs US$4.73 - Deutsche Bank
Last update: 9/27/2010 5:07:30 AM
Dow Jones NewswiresSeptember 27, 2010 05:07 ET (09:07 GMT)
Melco Crown Target Raised To US$5.00 From US$4.70 - Morgan Stanley
Last update: 9/2/2010 12:49:55 AM
I Agree Macau is the Place to Be right Now ;o) Shes Taken a little more Pullback than Expected(From me Anyway LOL!) But Earnings are right around the Corner! GLTU
Morgan Stanley came out with an important BUY recommendation today on MPEL with a short term objective of $7.00.
Cramer was touting this last week. That, plus the positive fundamentals, should continue to propel the upward movement in this stock. For those that aren't aware, the amount of dollars waged daily is staggering - in the multi millions. All of this bodes well for MPEL.
MPEL Annotated Chart
More charts on my chartlist
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3627543
Please vote if you enjoy them!
LOL!! Yes its been Uncommonly Quiet,Too Much Momentum in Macau for it to Stay Down here Too much Longer Tho!! GLTU
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MPEL Operates in Macau China, a former Portugese colony. MGM, WYNN, LVS are all active there. Good luck to us all
PIPELINE:
Already opened: City Of Dreams, Altira, Mocha Clubs.
Development: Peninsula Macau Site, Macau Studio City
Currently trading at 8.5X EV of 2010 while others like WYNN trading at 17X, LVS 15X, MGM 12.5X
Largest holder.
MELCO INTERNATIONAL and PACKER about 30mln worthed of ADS shares but they are not converted to ADS shares. (That is the good thing, it is not trading in NASDAQ.)
LONE CAPITAL, 15mln shares.
Each ADS shares equal to 3 ordinary shares. MELCO INTERNATIONAL holds more than 90mln ordinary shares.
OUTSTANDING SHARES (ADS WORTHED including MELCO's ordinary shares) as of 2009 SEPTEMBER 30: 527mln
Authorised Shares: 1.5bln
MARKET CAP: 2.1 BLN
NET CASH: $685mln (as of September)
Q3 09 EBITDA: $55mln
Q4 predicted EBITDA: $75mln
Net income: (-0.05)
Short term Target Price: $5.5 (Early December)
Mid term Target Price: $7 (End December)
Long term Target Price: $10 (February 2010)
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