MPEL YOUTUBE

In preparation for MPEL's Q4 earnings release Tuesday morning, we’ve put together the pertinent forward looking commentary from MPEL’s Q3 earnings call.

YOUTUBE

  • “As we’ve said in the past, the improvement in our mass market whole percentage is intangible, sustainable, and reflects operational improvements in our business. The improvement indicates that we are providing a better experience for our customers, and they are staying longer at our tables as a result. We believe our mass market hold percentage at City of Dreams will remain between 20% and 22% going forward, with the bulk of our mass market gains coming mainly from increased volumes.”
  • “Looking forward, we expect our growth at City of Dreams to come from a combination of the introduction of new amenities over the next few quarters, and from tactical initiatives designed and implemented by the new management team. These include leveraging The House of Dancing Water in our marketing campaign and broadening our geographic reach into China, as well as into the Asia-Pacific region. We’re also improving our relationships with tour group operators and asking companies in China to help us to drive more traffic through the property at attractive customer acquisition cost.”
  • “Looking forward, we expect to continue to participate in the growth of the growing chip market in Macau, while maintaining our disciplined approach to junket pricing and avoiding unsustainable commissions.”
  • “More specifically, fourth quarter got off to a good start, with the business generating record monthly levels of consolidated rolling chip volume, mass table drop and mass win in the month of October. Standalone, City of Dreams is also hitting new records on each of these operating metrics. From a balance sheet perspective, our first financial covenant test commences with our 4Q results and we remain comfortable with our ability to meet these tests.”
  • [4Q] “Depreciation and amortization cost is expected to be approximately 84 million, which reflects a full quarter of depreciation from The House of Dancing Water. Net interest expense in the fourth quarter is expected to be approximately 29 million. We do not expect any pre-opening expense or capitalized interest for the fourth quarter.”
  • [Singapore impact] “And as we predicted, I think Singapore took some of the Southeast Asian VIP business, because from a geographical and traveling standpoint it’s just a lot easier and a lot closer to go there. But I think with the amount of quality resorts and hotel in Macau right now, Macau has its own appeal. So, I think at 60% year-on-year growth, there’s been very little impact.”
  • “Over the medium to longer term and beyond Macau in some of the major jurisdictions like Japan and Taiwan, we have quietly done some study trips and some lobbying work. So, we will continue to keep an eye on those markets as well.”
  • “And the expansion area will be around 20 tables. Hopefully, we will be bringing two to three junket operators before Chinese New Year, that’s the plan.”
  • [Unused land adjacent to CoD] “I think more likely than not it is probably going to be a hotel tower.”
  • “So, I think when sites five and six and Galaxy opens up, that will certainly appeal to their visitors, and will certainly draw some traffic into our property.”
  • [Junket market] “So, we’ve stuck very firm on our pricing since over a year ago, and also, on credit support as well. So, I think if you look at some of our receivable is actually going down.”
  • “In terms of Altira, the majority of junkets on the turnover basis.”
  • “In COD, the revenue share and turnover basis ratio is 50-50.”