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Confident, earning and looking to the future
After a rocky few years following the opening of City of Dreams, Melco Crown is now benefiting massively from the popularity of Macau’s casinos but is also carefully placing itself to continue to take advantage of the burgeoning mass market.
dreamscomingtrue MELCO CROWN
Very strong fourth quarter revenues profits rounded off a transformational year for Melco Crown. The company saw annual casino revenues rise by 44.3 per cent over 2010 to reach $3.68bn (E2.76bn): the company’s other revenue streams,
which
although totalling around $250m pale by comparison, saw a rise of 47 per cent, to bring net revenues for the year in at 45.1 per cent ahead at $3.84bn (E2.88bn). Fourth quarter net revenues alone
were $1.01bn (E758.5m), over 30 per cent ahead of the same period a year earlier.
The company’s net profit for the
quarter reached $107.5m (E80.7m), more than 6.5 times the net result in Q4/2010. The annual profit totalled $294.6m (E221.2m), overturning the $10.5m (E7.9m) loss the company reported last year. Lawrence Ho, co-chairman and CEO of Melco Crown Entertainment, said: “Our results for the fourth quarter [complete] a remarkable year for the company where we delivered full year net revenue and EBITDA growth of 45 per cent and 88 per cent respectively, demonstrating strong top-line growth together with impressive operating leverage.”
He continued: “The meaningful
ramp-up in our mass market opera- tions over the past year, which is evident in the sustained improvements in margins and group-wide profitabil- ity, is particularly pleasing… We believe our premium mass market focus at City of Dreams represents one of our key competitive advantages, giving us an ability to capture and leverage a loyal and more profitable customer base.” At City of Dreams in Q4, net rev-
enues rose 42 per cent to $695.9m (E522.6m). Rolling chip volume was
17.5 per cent, above the expected range and well beyond the previous year’s hold, which was below the range at 14.7 per cent. The Mocha Clubs slot salons saw
$20.4bn (E15.32bn) with a hold of three per cent, slightly higher than in the previous year and at the top end of the range. Drop at the mass market tables also rose 42 per cent to $811m (E609.1m) with a hold of 25.7 per cent, a big leap from the previous year’s 22 per cent and again near the top of the expected range. Slot handle rose ten per cent to $566.8m (E425.7m). At Altira Macau, net revenues were up nine per cent to $268m (E201.3m). Rolling chip volume was $12.1bn (E9.09bn), up six per cent, with the hold percentage maintained at 2.9 per cent. Mass market table games drop was up nine per cent at $144.6m (E108.6m) with a hold of
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Published by: GBmedia 54 March 2012 • businessnews corporation ltd
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revenues rise 13 per cent to $34.5m (E25.9m). The number of gaming machines rose to an average of 1,800 in the quarter, 200 more than a year earlier. Net win per machine per day, however, fell back by four per cent to $200m (E150.2m) in Q4. Ho added: “Our current exposure
to the fast-growing Cotai region, as well as our future development pipeline with Studio City, means we are well positioned to take advantage of the shift of the gaming epicentre to Cotai, particularly in the mass market segments… Our design plans [for] Studio City are effectively com- plete and we are undergoing the nec- essary government processes to obtain the required approvals to com- mence construction. At the same time, we are working through our financing plans…which will poten- tially include a bank loan and other debt financing.”
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Melco Crown’s flagship City of
Dreams is attracting both VIPs and mass- market players
Annual Nevada revenues rise again Casinos in Nevada saw revenues rise in 2011 by 2.8 per cent to $10.7bn (E8.03bn), the second year revenues increased in the state. On the Strip, revenues were up 5.1 per cent to $6.07bn (E4.56bn), crossing the $6bn threshold for the first time in four years. Even subtracting VIP baccarat, which has been a significant driver recently, statewide revenues rose 2.4 per cent, the first rise for five years. Revenues from slots were up 1.5 per cent on the previous year, while tables generated 5.2 per cent more.
Another stellar year for Wynn Resorts
everyoneawynner WYNN RESORTS
Having always avoided the debt problems experienced by some of its competitors, Wynn Resorts has consis- tently shown relatively strong figures, even in the depth of the crisis, helped by the ever-increasing contribu- tions from Macau.
As the industry picks up,
those results keep getting better. In 2011, Wynn Resorts saw group-wide net revenues of $5.27bn (E3.96bn), up 25.9 per cent on 2010. The increase was, of course, driven by a 31.2 per cent increase in rev- enues from its Macau opera- tions, but also usefully helped by a 14.2 per cent increase in those from Las Vegas. Gross gaming rev- enues at Wynn and Encore reached $776m (E582.8m), which, said chairman and CEO Steve Wynn in a confer- ence call, is the record GGR ever generated by a single operator.
In Q4 Wynn Macau and
Encore saw net revenues of $995.5m (E747.6m), up 9.1 per cent. Turnover at the 295 VIP tables reached $29.7bn (E22.3m), a rise of 7.3 per cent, with a win percentage of 3.18 per cent, above the expected range. Drop at the 198 mass market games was $692.3m (E519.9m), up 4.4 per cent from a year earlier, with a win of 30.4 per cent, far higher than even the revised range of 26 per cent to 28 per cent and more than six points ahead of the com-
parison period. Handle at the 930 slots rose 12.2 per cent to $1.3bn (E976.3m) with win per unit per day 23.2 per cent higher at $749 (E562.5m). In Las Vegas, net rev- enues were up 7.2 per cent in the fourth quarter com- pared to 2010 to $348.4m (E261.6m), of which net casino revenues accounted for $145.8m (E109.5m) them- selves up 4.7 per cent. Table games drop was $594.5m (E446.5m) with a hold of 23.3 per cent, 0.8 points higher and within the expected range. Slot machine handle was down 5.4 per cent to $660.1m (E496.7m), however, the win rate improved by 0.9 points to achieve higher revenues. Speaking of the soon-to- be announced Wynn devel- opment in Cotai in Macau, Steve Wynn said he was very relaxed about a late entrant into that area.
He said: “Our competitors have done some beautiful work. Galaxy, Sands, City of Dreams, SJM are really ter- rific. Everybody gets smarter and everybody gets better. But I have a smile on my face because we’ll be the last to go at Cotai. Maybe we’ll have some new moves to show.”
Wynn and Encore in Las Vegas recorded the highest ever annual gross gaming revenues by a single operator in Nevada
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