Melco net loss narrowed by 86%

Lawrence Ho, Group Chairman and CEO of Melco, said: “In 2010, Melco Group celebrated its 100th anniversary with significant progress in its business results, primarily driven by continued improvements in our core business of ‘Gaming and Macau’. Our strategies in driving operating leverage and in improving the profitability of our portfolio of assets in Macau, particularly in ramping up our mass market and VIP business, have been proven effective, resulting in new records in quarterly rolling chip volume, mass table drop and slot handle in the fourth quarter of 2010.”

“The new operating management structure at Melco Crown Entertainment has also shown positive impact on our business within the few months since it has been implemented,” Ho added.

During the year, the group’s business mix continued to shift favorably with greater contribution from the higher-margin mass market segment. One of its key strategies in enhancing mass gaming infrastructure was the opening of The House of Dancing Water in September.

The success of the spectacular extravaganza has created a truly phenomenal attraction in the eyes of general public in Hong Kong, Macau and overseas visitors since its opening. It has not only earned plaudits from audiences and critics alike, but also generated significant positive ripple effects throughout the business including additional revenue and collateral visitation.

Through the end of 2010, the group’s database grew to more than 560,000 members, and it continues to fuel its growth in the mass market. To sustain this upward trend, the Group has
implemented strategies to further leverage the success of its world-class production, The House of Dancing Water.

The group is expecting the opening of additional entertainment amenities in 2011, including the largest nightclub across Hong Kong and Macau, Club Cubic; and the worldfamous Hard Rock Café, to add significant contributions to the resort’s visitation and mass market revenue.