In an effort to evaluate performance and as a follow up to our YouTube, we compare how the quarter measured up to previous management commentary and guidance.
OVERALL: BETTER - Another big beat by MPEL driven by hold percentage and Mass volumes. They beat our Street high EBITDA estimate.
- JUNKET EXPANSION
- SAME: still expects to add 3 junkets by end of Q2 at City of Dreams. CoD junket table productivity is doing 30% better than those at Altira.
- SAME: Do not see much change in junket commissions and credit policies. Provision for doubtful accounts has been stable.
- MACAU STUDIO CITY
- SAME: remains optimistic that construction can restart by the end of Q2. Construction/design budget of $1.9BN is unchanged.
- FINANCING OF MSC
- BETTER: management has no plans to raise equity in either Hong Kong or US
- LARGE MASS EBITDA CONTRIBUTION
- BETTER: 75% of 1Q EBITDA came from the mass segment. Market share and EBITDA better than expected
- 1Q D&A GUIDANCE
- SLIGHTLY WORSE: 1Q D&A was $95.1MM, slightly worse than company guidance of $90-95MM
- 1Q CORPORATE EXPENSE GUIDANCE
- SAME: 1Q corp expense came in at $20MM, at the high end of its $18-20MM guidance
- 1Q NET INTEREST EXPENSE
- BETTER: 1Q net interest expense came in at $23MM, below company guidance of $25-30MM