Melco moves to Q1 profit, failed to meet analysts’ expectations

May 23, 2011 8:03 PM

Once again, Melco Crown Entertainment Ltd. (MPEL) was able to show a much better performance on a year-to-year comparison, but once again the Macau gaming company failed to meet analysts’ expectations in reporting the financial results for the quarter that ended on March 31.

The company said revenues climbed to $806.6 million, compared to last year’s $567.6 million and that earnings were $7.2 million compared to last year’s loss of $12.4 million. On a per share basis, the company said its earnings were $0.01. In 2010, the loss per share was $0.02.

Still, analysts were looking for a profit of between $0.05 and $0.06 per share.

In addition to playing a little on the unlucky side, the company said the low income figure was linked to depreciation and amortization expenses from the opening of the House of Dancing Water at City of Dreams resort and higher interest expenses related to refinancing.

"Our results from the first quarter of 2011 continue to illustrate our success in leveraging our high quality portfolio of assets with record gaming and non-gaming revenues," said CEO Lawrence Ho.

"With the growth in our mass market operations, as well as our ability to capture the ongoing strong growth in the rolling chip segment, our outlook remains positive," he said.

Investors appeared to agree. After watching the share price drop immediately following the quarterly announcement, shares quickly rose to the $10.40 level.