City of Dreams operator optimistic about PH gaming market

MANILA, Philippines – Melco Crown (Philippines) Resorts Corporation, the operator of City of Dreams Manila, remains optimistic about the Philippine gaming market despite increasing competition and the declining regional gaming market.

Melco Crown chairman and president Clarence Chung said on the sidelines of the company’s annual stockholders’ meeting that the firm narrows its losses by reducing expenses and focusing on non-gaming amenities.

“While we continue ramping up our financial performance – and I think we are more focused on cash flow and EBITDA (earnings before income tax, depreciation, and assets) in the time being, although accounting wise – hopefully our accounting losses will be reduced given improved operations in the following years,” Chung said.

“The Philippine gaming market probably last year posted if not the highest growth in the world, at least the highest in the region, for [Asia]. Philippines’ gaming market has grown. So we are optimistic. We will do what we will do best to continue to make this as attractive as possible and give customers great experience,” Chung added.

Meanwhile, Melco Crown property president Geoff Andres is also optimistic about City of Dreams Manila, given the improving infrastructure in the Philippines. (READ: Overview: What you’ll see at the City of Dreams Manila)

“We have built a good product. We are just getting started. With improved infra there is nothing but upside for all of us,” Andres said.

Andres, however, noted that if the government decides to ease visa restrictions, this would lure more foreign players to come to the Philippines.

In the first quarter of 2016, Melco Crown narrowed its net loss to P1.13 billion from the P3.08 billion net loss recorded in the same period last year, due to improved operating revenues and minimal increase in expenses.

First quarter operating revenues nearly doubled to P4.53 billion from P2.34 billion, primarily due to the ramping up of resort operations since the opening in December 2014.

Casino revenues – which accounted for 83% of total net operating revenues for the 3 months ending March 31, 2016 – stood at P4.05 billion, up 108% from P1.95 billion recorded in the same period a year ago.

Non-casino revenues, including hotels, food and beverage, entertainment, and retail, also amounted to P388.6 million in the first quarter of 2016.

The share price of Melco Crown on Monday jumped 12.8% to P3.35 per share. – Rappler.com