MPEL Q1 REPORT CARD

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. 
  • COMMISSIONS/CREDIT
    • 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

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