Melco's City of Dreams helps boost Macau's July revenues

Aug 4, 2009 5:07 PM
by Ray Poirier |

Improved gaming results in Macau for the month of July is being attributed to the opening of the city’s newest entertainment resort, the City of Dreams, built and operated by Melco Crown Entertainment Ltd. (MPEL).

Unofficial reports for Asia’s giant gaming capital had revenues increasing by 3 percent after having fallen in June by a reported 17 percent.

Giving Macau a solid boost during July was City of Dreams’ sequential increases over June in VIP play, mass market table games and in slot action.

The company said its VIP action at 136 tables was up 36 percent while its 353 mass market tables increased by 33 percent. Slot machine action jumped 13 percent, the company reported.

Melco Crown’s CEO Lawrence Ho said the City of Dreams operation was able to increase its business without cannibalizing from the company’s initial project, Altira Macau.

The hold percentage on a combined basis involving the two properties was 2.94 percent, exceeding the company’s target of 2.85 percent.

A major factor going forward was the recent agreement among all the casino operators to cap maximum commissions to gambling junket operators at 1.25 percent.

Melco Crown will report its second quarter earnings on Thursday, Aug. 6.

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