In preparation for the MPEL Q2 earnings release on July 28th, we’ve put together the pertinent forward looking commentary from MPEL's Q1 earnings release/call.



Q1 Conference Call

  • For 2Q, "Depreciation and amortization cost is expected to be approximately US$77 million.  Net interest expense in the second quarter is expected to be approximately US$20 million.  Preopening expense will be approximately US$4 million, which is primarily related to The House of Dancing Water."
  • "The increase in our mass-hold percentage [from 16 to lower 20s] is sustainable, real and driven entirely by the fundamental improvement to our business.... our stated range of 18 to 20 is the right guidance, I think we’ve been at the upper end of that."
  • "We will continue to drive additional benefit going forward by pushing occupancy at Grand Hyatt into the 90% plus level.... About 85% of the occupancy in the hotel is represented from Hong Kong or PRC with the rest of it from other markets to date. So, we expect to grow occupancy in there quite strongly into Q2."
  • "We expect to derive the majority of our EBITDA of City of Dreams from the mass market going-forward."
  • "I will venture that I have confidence in preserving a substantial portion of the low market priced bank debt facility, which fully matures in 2014, will allow us to construct a refinancing that will keep our blended cost of debt below that of most of the other global gaming companies.... our debt will drop down to 150bps over, substantially below any market price, which had just clearly been established at 450 over by one of our competitors.... We will complete a refinance transaction during 2Q."

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