City of Dreams Manila revenues surge in Q4
REVENUE from the Philippine operations of Melco Crown Entertainment Ltd. (MCE) significantly increased in the final quarter of 2016 driven by improved volumes across all gaming segments.
Net revenues of City of Dreams Manila reached $144.7 million in the October to December period, 79% higher than the $80.9 million in the same period in the prior year, Melco Crown (Philippines) Resorts Corp. (MCP) said in a disclosure to the stock exchange on Friday.
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 jumped 62% to $2.1 billion from $1.3 billion, as the win rate -- or the casino’s win, which flows to the revenue line of the income statement -- accelerated to 3.5%, surpassing the expected range of 2.7%-3% and the 2.1% booked in 2015.
Mass market tabled games drop -- the amount of money wagered and dropped at the table -- rose 40% to $149 million from $106.3 million. The hold percentage picked up slightly to 27.8% from 27.5% in the previous year.
Gaming machine handle -- the amount wagered at the slot machines -- went up by 59% to $671.3 million from $420.9 million The win rate declined to 5.9% from 6.2% in 2015.
Non-gaming revenues climbed 12% year-on-year to $28.1 million from $25 million.
As a result of the higher revenues, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) -- a good proxy for cash flow -- during the period more than tripled to $50.2 million from $15.5 million.
City of Dreams Manila is the second casino to rise in Entertainment City, the Philippines’ answer to Macau and Las Vegas, after Bloomberry Resorts Corp.’s Solaire Resorts & Casino.
Henry S. Sy, Sr.-led Belle Corp. took in the Macau casino operator, owned by Australian billionaire James Packer and Lawrence Ho, to operate its casino in Entertainment City in 2013. Lawrence is the son of Macau gaming mogul Stanley Ho.
Shares in MCP added four centavos or 0.79% to end at P5.10 each on Friday. -- Krista Angela M. Montealegre