Melco Crown fails to halt losses

Nov 24, 2009 1:57 AM
Earnings by Ray Poirier |

Business was booming at its new City of Dreams in Macau, but still Melco Crown Entertainment (MPEL) was unable to improve its operating performance from a year ago.

The company said that in the quarter that ended Sept. 30, it lost $39.6 million or $0.08 per share compared to last year when its loss was $21.1 million or $0.05 per share.

The stylish City of Dreams project, which opened in June, accounted for nearly three-fifths of the quarterly revenue of $500.3 million. Still this was short some $20 million from analysts’ estimates. Earnings however, did meet analysts’ estimates of a $0.09 per share loss.

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For investors, Melco Crown is a pure Macau play with its City of Dreams, Grand Hyatt Macau and nine smaller gambling facilities. Competition comes from Stanley Ho’s SJM Holdings, Galaxy Entertainment Group, Las Vegas Sands Corp. (LVS), and Wynn Resorts Ltd. (WYNN).

Other gaming companies reporting quarterly results included:

Ameristar Casinos Inc. (ASCA) reported net income of $14.5 million or $0.25 per share, up slightly from last year’s $14.3 million or $0.25 per share.

Pinnacle Entertainment Inc. (PNK) showed a loss of $21.9 million or $0.37 per share compared to the previous year’s loss of $11.8 million or $0.20 per share.

Monarch Casino & Resort Inc. (MCRI) said it had income of $3.6 million or $0.13 per share on revenues of $34.8 million. Last year, the revenues were $38.8 million and the income was $6.2 million.

MTR Gaming Group Inc. (MNTG) reported a decline in revenue of 9% to $119.5 million from last year’s $130.8 million. Net income was $77,000 or $0.02 per share compared to last year’s net loss of $8.2 million or $0.30 per share.

PokerTek Inc. (PTEK) had a loss of $1.29 million or $0.11 per share compared to a loss of $1.75 million or $0.16 per share last year.

Dover Downs Gaming & Entertainment Inc. (DDE) had net earnings of $1.2 million or $0.04 per share. A year ago, the net earnings amounted to nearly $5 million or $0.16 per share.

Question? Comment? E-mail me at: Ray Poirier