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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

  • WORSE:  While Mass was strong, VIP was worse than expectations after the Q1 conference call.  EBITDA missed our estimate by a little bit but the MSC commentary seemed positive on the margin.

 PERFORMANCE OF NEW JUNKET ROOMS AT COD

  • WORSE:  We did not see a sequential or YoY in RC volume despite the additions below.  RC volume increased 0.5% QoQ and was flat YoY despite opening of the new junket rooms at CoD. 
  • PREVIOUSLY: "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."

PERFORMANCE OF NEW PREMUIM MASS AREA AT COD

  • SAME:  Hold rate did improve but Mass drop fell 5% QoQ 
  • PREVIOUSLY: "Earlier this month [May], we opened our new Premium Mass gaming and entertainment area at City of Dreams. We aligned more Grand Hyatt rooms to our high end Premium Mass segment...we anticipate an improvement in hold percentage and also result from the length of stay for this segment customers."

MSC UPDATE

  • BETTER:  MPEL "received from the Macau Government the revised formal land grant approval and permit to restart construction" which we already knew.  However, management seemed very optimistic about gaining the necessary casino approvals
  • PREVIOUSLY: [Studio City] "We remain optimistic that we can restart construction towards the end of this quarter, subject, of course, to government approval. Our $1.9 billion budget for Studio City remains."

SCC IMPACT

  • WORSE: MPEL saw a temporary impact on their mid and lower end business, although they claim that since July that business has rebounded and come back to them
  • PREVIOUSLY: "And even with the limited offering, we have seen an uplift in terms of visitation into City of Dreams."

 MPEL 2Q12 REPORT CARD - MPEL