MANILA: Revenue from the Philippine operations of Melco Crown Entertainment Ltd. (MCE) surged in the final quarter of 2015, helping offset the impact of a slide in its casinos in Macau.
Net revenue at City of Dreams Manila was $80.9 million in the three months to December, compared with $7.6 million a year earlier, Melco Crown (Philippines) Resorts Corp. (MCP) said in a disclosure to the stock exchange yesterday. The result reflected full operations across the entire final quarter of 2015, with the year-earlier performance accounting only for the period following the resort’s launch on Dec. 14, 2014.
MCP has yet to file its financial statement with the regulators, though MCE has submitted its financial results to NASDAQ Global Select Market.
Rolling chip volume amounted to $1.3 billion for the fourth quarter of 2015. The rolling chip win rate was 2.1% — below the expected win rate range of 2.7%-3% — during the period. Win rate refers to the casino’s win, which flows to the revenue line of the income statement.
Mass market table games drop — the amount of money wagered and “dropped” at the table — stood at $106.3 million and the mass market table games hold percentage was 27.5% in the fourth quarter of 2015.
Gaming machine handle — the amount wagered at the slot machines — hit $420.9 million, with City of Dreams Manila operating an average of about 1,700 gaming machines during the period.
Total non-gaming revenue at City of Dreams Manila hit $25.0 million in the quarter, compared with $1.7 million in the few weeks of operations in late 2014.
“In the Philippines, City of Dreams Manila continues to grow a more diversified revenue stream, with the continuing ramp of the rolling chip business complementing its mass market gaming and non-gaming segments. We remain confident in the long term success of the Philippines’ gaming market given the country’s anticipated economic growth and supportive demographics, together with an expanding and Government-supported inbound tourism market,” MCE Co-Chairman and Chief Executive Officer Lawrence Ho was quoted in the press release as saying.
Melco Crown Entertainment swung to a net loss of $12.3 million in the fourth quarter from a profit of $92.9 million in the same period in 2014. As a result, full-year earnings plunged 82.6% to $105.7 million on lower rolling chip revenues and mass market table games revenues from two resorts in Macau — City of Dreams and Altira Macau.
“We delivered a strong set of operating and financial metrics in what is a still challenging environment in Macau,” Mr. Ho said.
