Melco Crown sees Q3 2015 revenue fall 16%

The Hong Kong company saw net revenue fall 16% to US$945.7m for the three months to September 2015 as rolling chip and mass market table games revenues were down in Macau.

The decline in net revenue at Melco Crown’s flagship City of Dreams Cotai was slightly offset by City of Dreams Manila, which started its operations in December 2014. The company reported Adjusted property EBITDA decreased 22pc year-on-year for the Group during the period, primarily due to the downtrend of VIP and mass table play in Macau.

“Our results in the third quarter of 2015 were impressive, particularly given the challenging demand backdrop in Macau. This performance highlights our world-class gaming and non-gaming amenities and market-leading, premium positioned flagship integrated resort, City of Dreams, together with ongoing commitment to managing costs,” said co-Chairman and CEO Lawrence Ho.

At City of Dreams Macau, net revenue was US$665.6m at the end of the quarter compared to US$911.6m for the same period last year. Rolling chip volume totalled US$9.3bn compared to the US$17.3bn, mass market table games drop was down to US$1.1bn compared to the US$1.3bn, slot handle was US$1.2bn compared to US$1.5bn, and non-gaming revenue was US$66.8m compared to US$74.2m in the third quarter of 2014.

Net revenue at Altira Macau was US$140.3m during the quarter compared to the US$160.4m and Mocha Clubs reported net revenue of US$36.1m as compared to US$38.5m in the prior year period. Net win per machine at Mocha Clubs, however, grew from US$306 to US$318 due to the transfer of approximately 100 terminals.

In the Philippines, City of Dreams Manila generated US$91.7m net revenue in the third quarter of 2015. Rolling chip volume totalled US$1.2bn for the period and mass market table drop was US$116.7m. Slot machine handle for the quarter was US$508.4m with about 1,700 machines in operation generating an average per-day win of US$184 per machine.

The opening of Studio City on October 27 opens the company to a wider demographic and cements Melco Crown Entertainment as a key player in global gaming, tourism, hotel and resort sectors. It aims to bring a more diversified entertainment offering to Macau that will attract tourists and families from across Asia and the rest of the world.

“Studio City features a wide array of entertainment options for visitors of all ages to enjoy. 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,” said Ho in the earnings release.