NEW YORK, Apr 28, 2010 (GlobeNewswire via COMTEX) –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 first quarter ended March 31, 2010.
For the first quarter of 2010, net revenue was US$567.6 million, representing an increase of approximately 162% from US$216.5 million for the comparable period ended March 31, 2009. The increase in net revenue resulted primarily from the opening of City of Dreams in June 2009.
Adjusted EBITDA (1) was US$86.9 million for the first quarter of 2010, as compared with Adjusted EBITDA of US$21.3 million in the first quarter of 2009. The year-over-year increase in Adjusted EBITDA in the first quarter of 2010 was attributable to the opening of City of Dreams, combined with various expense management initiatives across the Company’s three operating units.
The combined rolling chip table games hold percentage (calculated before discounts and commissions) across City of Dreams and Altira Macau in the first quarter of 2010 was 2.9%, within the expected rolling chip hold percentage range of 2.7% to 3.0%.
The company-wide mass market table games hold percentage (non rolling chip) in the first quarter of 2010 was 19.7%, which is above the previous target hold percentage range of 16.0% to 18.0%, but consistent with the mass market hold percentage at mass market focused properties, such as City of Dreams. Going forward, we target 18% to 20% for our company-wide mass market table games hold percentage.
On a U.S. GAAP basis, Melco Crown Entertainment recorded a net loss for the first quarter of 2010 of US$12.5 million, or a loss of US$0.02 per ADS, compared to a loss of US$35.3 million, or a loss of US$0.08 per ADS, in the first quarter of 2009. The year-over-year decrease in the net loss resulted from the earnings contribution from City of Dreams, partially offset by increased depreciation and amortization expenses and lower capitalized interest following the opening of City of Dreams.
Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment commented, “The first quarter of 2010 was the first reporting period to benefit from the full complement of hotel rooms and the opening of other non-gaming amenities at City of Dreams. VIP gaming volume at City of Dreams remained strong and our mass market gaming volume continued to show meaningful sequential growth. Additionally, the improvement in our mass market hold percentage is an important driver of revenue and EBITDA and is a consequence of operational improvements rather than table game volatility. We are pleased that our first quarter results provide an early indication of this property’s potential, though we continue to believe there is considerable room for additional improvement.
“At Altira Macau, not only has rolling chip turnover returned to pre-commission cap levels, but it has exceeded those levels. Our smooth transition into a traditional rolling chip business model has sustainably improved the profitability of our VIP business at this property.
“We are pleased to see company-wide profitability improve beyond what would be expected from increased gaming volume. Cost containment efforts, combined with reduced commission expense, are sustainably driving margin improvement across the Company.
“Additionally, as City of Dreams ramps up, our mix of business continues to shift favorably with a greater contribution from the higher margin mass market segment. This is enhancing our overall EBITDA margin and is expected to result in more stable and predictable earnings going forward.
“Overall, we continue to believe that the volume and profitability improvements to our business over the last two quarters are sustainable. We remain confident that our mass market gaming volume can continue to grow, as we roll out additional amenities at City of Dreams, such as The House of Dancing Water which is scheduled to open in the third quarter of this year.”
City of Dreams 1Q Results
For the quarter ended March 31, 2010, net revenue at City of Dreams was US$336.3 million and Adjusted EBITDA was US$70.9 million.
Rolling chip volume totaled US$9.8 billion for the first quarter of 2010 and mass market table games drop (non rolling chip) totaled US$479.4 million. Slot handle was US$441.0million.
On a sequential basis from the fourth quarter of 2009, rolling chip volume increased 5%, mass market table drop increased 13%, and slot handle increased 18% in the first quarter of 2010.
Total non-gaming revenue at City of Dreams in the first quarter of 2010 was US$29.4 million. Occupancy per available room in the first quarter of 2010 was 75% and the average daily rate (ADR) was US$152 per occupied room.
Altira Macau 1Q Results
For the quarter ended March 31, 2010, net revenue at Altira Macau was US$197.2 million versus US$183.6 million in the quarter ended March 31, 2009. Altira Macau generated Adjusted EBITDA of US$21.8 million in the first quarter of 2010 compared with Adjusted EBITDA of US$20.2 million in the first quarter of 2009.
Rolling chip volume totaled US$9.9 billion in the first quarter of 2010, up from US$9.1 billion in the first quarter of 2009. In the mass market table games segment, drop (non rolling chip) totaled US$71.1 million in the first quarter of 2010, down from US$76.0 million generated in the comparable period in 2009.
Total non-gaming revenue at Altira Macau in the first quarter of 2010 was US$7.4 million, down from US$7.8 million in the first quarter of 2009. Occupancy per available room in the first quarter of 2010 was 92% and the ADR was US$166 per occupied room. This compares with occupancy and ADR of 89% and US$234, respectively, in the first quarter of 2009.
Mocha Clubs 1Q Results
Net revenue from Mocha Clubs totaled US$26.7 million in the first quarter of 2010, up from US$24.7 million in the first quarter of 2009.
Mocha Clubs generated US$6.5 million of Adjusted EBITDA in the first quarter of 2010, which compares with US$6.8 million in the first quarter of 2009.
The number of gaming machines in operation at the Mocha Clubs averaged approximately 1,564 in the first quarter of 2010, an increase from an average of approximately 1,273 in the first quarter of 2009. The net win per gaming machine per day was US$187 in this period, as compared with US$211 in the same period in 2009.
Other Factors Affecting Earnings
Total non-operating expenses for the first quarter of 2010 were US$18.8 million, which included US$15.5 million in net interest expense and other finance costs of US$3.4 million. Capitalized interest during the first quarter of 2010 totaled US$3.7 million.
Depreciation and amortization costs of US$76.1 million were booked in the first quarter of 2010, of which US$14.3 million was related to the amortization of our gaming sub-concession and US$4.9 million was related to the amortization of land use rights.
Financial Position and Capital Expenditure
Cash and cash equivalents as of March 31, 2010 totaled US$380.0 million, including US$127.1 million of restricted cash. Total senior secured debt at the end of the first quarter of 2010 was US$1.68 billion. Total debt to shareholders’ equity as of March 31, 2010 was 72%.
Capital expenditures for the first quarter of 2010 were US$36.3 million, primarily attributable to City of Dreams.
