In preparation for MPEL's 2Q earnings release Monday, we’ve put together the recent pertinent forward looking company commentary




  • "We recently opened three new fixed junket rooms at City of Dreams, which we believe will start to contribute to our results [higher rolling chip volume] from the second quarter of 2012."
    • "We add totally about 23 tables for these three new junket operator, which means about 10% more on the VIP tables allocated in VIP in COD compared to last quarter last year."
  • "Earlier this month [May], we opened our new Premium Mass gaming and entertainment area at City of Dreams."
  • [Studio City] "We remain optimistic that we can restart construction towards the end of this quarter, subject, of course, to government approval."
  • "We now expect our mass hold percentage at City of Dreams to be in the 25% to 30% range."
  • 2Q guidance:
    • D&A: $90-95MM
    • Corp expense: $18-20MM
    • Net interest expense: $23-25MM
  • "Our $1.9 billion budget for Studio City remains."
  • "We are in active discussion with the Venetian about building the skywalk between City of Dreams and Venetian and that is progressing along."
  • [SCC impact] "And even with the limited offering, we have seen an uplift in terms of visitation into City of Dreams."
  • "We align more Grand Hyatt rooms to our high end Premium Mass segment. So continuing doing to do so, we anticipate an improvement in
    hold percentage and also result from the length of stay for this segment customers."
  • "In terms of construction schedule, we're not concerned. And obviously, with Studio City, the previous owners had put in significant foundation of piling work, which does give us quite a few months of head-start from that phase. The government has told us....when there's a need for workers, they will do the right thing and allow more foreign labor to come in to help out in the development of the city."
  • "We actually had a sequential and year-over-year decline in our receivables and our provision was roughly flat with where it's been trending for the last few quarters. We're not seeing in our Premium Direct business any change in collection cycles and we're not hearing about any change from our junket partners."
  • [Mass/VIP breakdown] "We remain our expectation on the existing ratio."

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