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MANILA, Philippines (UPDATED) – Casino operator Melco Crown (Philippines) Resorts Corporation reported that its net loss ballooned to P3 billion ($67.21 million) in the first 3 months of 2015.
The net loss ballooned from P970.1 million ($21.73 million) recorded in the same period in 2014 on higher expenses due to the continuous development of the $1.2-billion City of Dreams Manila.
Based on a financial filing with the Philippine Stock Exchange, Melco Crown registered total net operating revenues of P2.34 billion ($52.41 million) for the 3 months ended March 31, 2015, versus the P21.3 million ($477,067.01) posted in the same period in 2014, driven by the opening of the integrated casino resort in December 2014.
Casino revenues accounted for 83% of total operating revenues at P1.95 billion ($43.70 million). Non-casino revenues, which contributed to 17% of total net revenues, reached P388.6 million ($8.71 million).
Operating expenses however surged to P4.74 billion ($106.19 million) during the first quarter of the year from only P430 million ($9.63 million) posted in the same period a year ago due to spending related to the opening of City of Dreams Manila.
Payment of gaming tax and license fees, employee benefit expenses and marketing, and promotional and entertainment expenses are among the major expenses recorded in the first 3 months of 2015.
For the previous quarter, Melco Crown has spent P1.65 billion ($36.97 million) in capital expenditures for the fit-out construction costs of City of Dreams Manila.
The resort is the second of 4 integrated resorts planned for the 297-acre Entertainment City, a Las Vegas Strip-style casino hub to compete with those in Macau and Singapore.
City of Dreams Manila has 981 hotel rooms under the Crown Towers, Nobu and Hyatt brands.
Melco Crown said average occupancy of the 3 hotels in City of Dreams, namely Crown Towers Hotel, Nobu Hotel, and Hyatt City, stood at 76.2%.
It also operates 380 gaming tables, 1,700 slot machines, and 1,700 electronic table games for the VIP and mass market.
On May 4, Melco Crown reported that its unit MCE Leisure (Philippines) Corporation also obtained a regular casino license from state-owned Philippine Amusement and Gaming Corporation (PAGCOR). It applied for the issuance of a regular gaming casino license with PACGOR on January 30, 2015. – Rappler.com
$1 = P44.63
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