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
- IN-LINE: While EBITDA came in short of our expectation, it was in-line with consensus. We had projected too high of a hold percentage and the hold/junket mix was unfavorable. On a positive note, Q4 is off to a good start.
CITY OF DREAMS PREMIUM MASS/NON-GAMING
- BETTER: This property continues to outperform expectations with premium mass driving the business. 3Q EBITDA beat the Street estimate by 6%. Visitation in 3Q increased 8% YoY to 46,000/day.
- PREVIOUSLY: We're very much focused on one segment, the premium mass, whereby most of our competitors they have (been focusing) between portfolios (of segments)...Non-gaming improvement, really, really help us to improve our length of stay for those customers.
STUDIO CITY
- SAME: Studio City remains on budget and on track to open in mid-2015 with clear progress being made on the main superstructure following the successful completion of the foundation and piling work.
- PREVIOUSLY: Studio City, our unique cinematically themed integrated resort remains on budget and on track to open in mid-2015.
CITY OF DREAMS MANILA
- SAME: MPEL is working hard to meet the opening date of mid-2014.
- PREVIOUSLY: The development of our Philippines project is also moving forward as anticipated with the opening date remaining unchanged at around the middle of 2014.
CITY OF DREAMS 5TH TOWER
- SAME: Tower 5 at CoD will open in late 2016/early 2017. The project will be focused on attracting premium mass and premium direct VIP business
- PREVIOUSLY: We anticipate starting construction on a fifth tower at City of Dreams before the end of 2013. This iconic development will provide another powerful lever to drive our premium mass business and expand our high-end patronage at City of Dreams, in turn enhancing property-wide return on invested capital.
CAPITAL ALLOCATION
- SAME: Board is crafting a dividend policy. MPEL will update investors in Q4 2013 or Q1 2014.
- PREVIOUSLY: I think the board is committed to look at a regular dividend policy because unlike some of our competitors, I think our board and the management team would prefer if we had stuck to one dividend policy. So we don't want to kind of make the decision like hastily. So anyways, it's going to be some time at the end of this year, early next year that we're going to sit down to discuss.