City of Dreams posts 46.6% jump in 2nd quarter net revenue

Integrated gaming resort City of Dreams (CoD) Manila grew its second quarter net revenue by 46.6 percent year-on-year to $176.2 million on increased earnings from the casino business.

CoD Manila’s net revenue during the period was also higher than the $157.4 million reported in the first three months of the year.

Based on a disclosure by gaming resort operator Melco Resorts and Entertainment Corp. yesterday, CoD Manila’s cash flow expanded to $62.8 million

Cash flow surged to $62.8 million in the second quarter from $36.5 million year-on-year due to increased casino revenue.

Rolling chip volume amounted to $3.2 billion in the second quarter, up by 88 percent from the level in the same period last year.

Win rate in the rolling chip segment was 3.5 percent versus 3.4 percent in the second quarter last year. This was higher than the expected rolling chip win rate of 2.7-3 percent.

A casino’s “win” or “hold” rate is based on the element of luck but is also affected by gaming limits, a player’s skill and resources and amount of time spent in the casino. While it is often said that the house always wins, sometimes it wins more and sometimes less than the statistical probability.

Bets on CoD Manila’s mass market table games increased to $169.8 million in the second quarter compared to $134.3 million year-on-year. Mass market table hold percentage was at 28.5 percent, slightly lower 29.9 percent in the same period last year.

Bets made on gaming machine handles for the quarter stood at $759 million compared with $515.4 million in the same period last year. Gaming machine win rate also inched up to 5.9 percent in the second quarter versus 5.8 percent in the same period last year.

Total non-gaming revenue at CoD Manila amounted to $28.1 million, rising from $26.2 million in the same period last year.

CoD Manila, a partnership between Sy family-led property developer Belle Corp. and gaming hub operator Melco Crown group of Macau, is expected by its principal shareholders to post the largest gross gaming revenue in the Philippine gaming space this year.

Upbeat on the performance of CoD Manila, Belle earlier said it was looking to expand the existing integrated resort and is now actively scouting for a second site to build on a new estate outside Pagcor Entertainment City.