Melco Crown trims loss, gaming revenues surge

CITY of Dreams Manila operator Melco Crown (Philippines) Resorts Corp. pared down its first semester net loss by 71 percent year-on-year to P1.42 billion on the back of higher gaming and hotel revenues.

In the second quarter alone, the Philippine unit of the Macau-based gaming firm Melco Crown trimmed its net loss by 84 percent year-on-year to P288.5 million as casino revenues surged to P5.11 billion from P2.9 billion in the same period last year.

Total gaming revenues in the first six months surged by 89 percent year-on-year to P9.16 billion. Gaming thus accounted for 90 percent of revenues in the semester compared to 85 percent in the same period last year.

Rolling chip win rate improved to 3.1 percent for the semester compared to 1.5 percent in the same period last year.

A casino’s “win” or “hold” rate is based on the element of luck but is also affected by the spread of table limits, a player’s skill and resources and amount of time spent in the casino.

In the mass market table games segment, clients’ drop or volume of bets amounted to P12 billion for the six months ended June 30, up by 23 percent year-on-year. The “hold” percentage was 28.7 percent, rising from 25.3 percent last year.

Gaming machine bets for the six months stood at P45.4 billion versus P37.9 billion last year. The win rate in this segment was stable at 6 percent relative to last year.

Revenues from hotel rooms during the six-month period rose by 6 percent to P471 million, accounting for 5 percent of total business. Room revenues primarily came from Crown Towers Hotel, Nobu Hotel and Hyatt City of Dreams Manila. The increase was attributed to improved occupancy as a result of more available rooms open for sales compared to the previous year alongside higher revenues per room.