,Hong Kong

Melco Crown Entertainment's 3Q profit down 22% to US$237mn

It still beat consensus, though.

Melco Crown Entertainment's net revenue in 3Q15 was US$946mn, down 16% yoy but improving 3.2% sequentially.

According to a research note from Jefferies, further, adjusted property EBITDA was US$237mn, down 22% yoy (but improving 16% qoq), beating Jefferies and consensus by 15%/16%.

The report noted it was mainly benefiting from mass contribution in Macau and strong performance in CoD Manila. Meanwhile, net profit was US$33mn, improved 37% qoq, but was down 75% yoy. Dividend was US$1.8 cents/ADR; at 30% payout maintained.

Here's more from Jefferies:

Mass improved sequentially; CoD Manila was strong. Both VIP and mass business outperformed the market in Macau. Total VIP GGR dropped 36% yoy vs. an industry decline of 45%. Mass declined 19% yoy, but improved 8% qoq. Propertywise, City of Dreams (COD) outperformed the market with net revenue improved 2% but EBITDA improved 7% sequentially. CoD Manila continuing ramp up, EBITDA was US$24.4mn, nearly double from US$12.6 mn in the Q2.

Studio City had a good start Studio City opened on Oct 27, it added 200 gaming tables (another 50 will be ready by Jan 2016) and 1,233 slots in the casino. For the non-gaming offering, they have 1,600 hotel rooms, 35k sqm in retail space, and a 5,000 seat entertainment centre as well as a TV studio.

During the opening week, hotel bookings were over 90% and retail occupancy was 95%. Media reported the first 5 days of operation in Oct reached US$6mn in GGR, which does not seem as good as expected with its 200 tables, but it is too early to draw a conclusion as we believe new property always needs time to ramp up.

Expecting a better Q4; reiterate Buy. The $50mn cost saving plan is on track and expect to help the numbers in Q4. The pro-active talks on debt negotiation of Studio City will help to minimize the potential impact. We expect the Studio City to gradually contribute and the non-gaming elements will help the property to accelerate the ramp up speed.
 

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The bourse’s income was dragged down by the delay in potential billion-dollar IPOs.
The city’s rival hubs such as Singapore have already reopened.
Particularly, the city is highly competitive in the high-net-worth and mass affluent space.
A study showed that it’s no longer the investment returns.
But 68% of them said their companies do not involve them in green initiatives.
The increase, however, was smaller than in the previous month's 1.6%.
Only 14% of businesses believe their situation will get better in Q4.
The number of jobless persons was down by around 7,100
This is as the weighted funding cost for deposits was steady during the month.
The 0.6% growth was driven by premium office space in the submarket.
Chief Secretary for Administration, John Lee, to take over until Lam recovers.
The airline’s overall tonnage grew MoM by more than 5% to 130,997 tonnes.
The airline carried ​​6,562 passengers on 17 September.