Interim report: Strong net revenue, group’s ownership interest in Melco Crown decreases

2013-9-23

From：Macau Daily Times

Melco International Development Limited – a group owning several hotel and casino resorts in Macau – has recently released its interim report, revealing “a strong net revenue” for the gaming business in Asia, as well as a revenue increase of approximately 58 percent in the lottery management business during the first half of 2013.
However, the group’s ownership of interest in its associate, Melco Crown Entertainment (the core gaming branch), decreased from 33.73 to 33.65 percent, representing a loss of HKD32.3 million.
According to the report, the first half of 2013 “marked another eventful period for the group with sustainable growth momentum and significant milestones achieved.” The report emphasizes the role played by City of Dreams, one of Melco’s gaming resorts, which has seen an increase in both group-wide rolling chip revenues and mass market gross gaming revenues.
Regarding gaming business in Asia, the group’s core gaming branch and the business units under its major associate, Melco Crow Entertainment, “adjusted the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) growth of 24 and 35 percent to USD2.440 million and USD603.6 million respectively during the first half of they year.” In the document, the group highlights the fact that City of Dreams has captured a significant market share in the mass-market table games segment.
The group saw a revenue increase of 58 percent on MelcoLot Limited, in which it holds an equity interest of 50.59 percent, and which serves as provider of lottery-related technologies, systems and other solutions in China.
Melco International emphasized that: “the lottery industry continues to show strong year-on-year growth as a whole, but there is still enormous potential for future growth in China’s lottery market.”
In the interim report, the group recognized a loss on deemed disposal of interest in its associate Melco Crown Entertainment, which slightly decreased from 33.73 to 33.65 percent during the period ending 30 June 2013 – mainly due to “the vesting of certain restricted shares and the exercise of share options for Melco Crown Entertainment.” “The group recognized a loss of approximately HKD32.3 million,” the report reads.
The group has confirmed that Studio City, the cinema-themed resort project under development in Cotai, “remains on budget and on track to open in the middle of 2015.”
Moreover, Melco Crown Entertainment has underlined its intention of investing beyond Macau, with the previously announced project in Manila, the Philippines, as well as its participation in the Barcelona World Project as a casino operator. In addition, the investment of 5 percent in the gaming and resort project in Russia’s Primorye Region is also emphasized in the report. “The Russian casino resort, geographically close to major target feeder markets, is expected to open in or around September 2014,” it reads.

Copyright@Macau Daily Times