In preparation for MPEL's Q3 earnings release, we’ve put together the pertinent forward looking commentary from MPEL’s Q2 earnings release/call.




  • “We continue to see growth in our mass market business in July and we are very comfortable predicting sequential volume growth in the third quarter of this year that is not dissimilar to that in the second quarter.”
  • “While we’ve grown with the market in the second quarter and third quarter, we are targeting to take some share in the fourth quarter of this year.”
  • “Depreciation and amortization cost is expected to be approximately 78 million US. Net interest expense in the third quarter is expected to be approximately 30 million and pre-opening expense will be approximately 4 million, which is primarily related to the House of Dancing Water.”
  • [CoD mass vs VIP breakout] “I mean the best way to look at that is to break it out in terms of split of EBITDA. And we are, at the moment, we’ve up to around about 50%, at theoretical hold rates on VIP, with roundabout 50% of our EBITDA coming from our mass activities and about 40% coming from our VIP business, the rest of it is non-gaming related. Do we think that we can move that mix to near a 60% coming from mass? Yes.
  •  "We would like to think that we would be able to do that. And clearly that would come from a step-up in overall mass volumes, associated with the amenities as we’ve suggested we’re aiming for.”
  • [Restricted cash] “We have part, 133 million of those proceeds in a restricted account, and that money will be applied against repayment on the bank loan that happened in the first three quarters. The first one being in December of this year (~$35MM) and then March of next year (~$35MM) and June of next year (~$63MM). In other words, we have no repayments under our bank loan until September of 2011 that need to be funded out of free cash generated from the business.”
  • “As far as our maintenance CapEx is concerned, it’s probably around about 30 to US$35 million across our portfolio of assets, on an annualized basis.”
  • [Macau growth rate] “So I think for the last quarter of the year, we should see in excess of 30% growth”
  • [House of Dancing Water] “It’s going to be three tiered, with the lowest tier being around US$50 per ticket and the highest tier being close to US$200… day-to-day maintenance cost is US$100,000 a day.”

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