Melco Crown topped analysts’ forecasts as they released impressive results for the second quarter of 2011. Compared with the same period last year, net revenue increased by 67% to US$960m that exceeded analysts who predicted $925m.
Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment, commented, “These results represent another strong quarter for our Company, driven by significantly improved operating performance across all areas of the business. Our second quarter results reflect record consolidated EBITDA on record setting gaming volumes for our Company. Our overall profitability continues to reflect our various cost containment initiatives that help drive strong operating leverage.
In addition to the net revenue increase their adjusted EBITDA was $216m for Q2 that represented an increase of 195% compared with last year. Ho added, “We continue to deliver on our objective of profitably expanding our mass market business, particularly the premium mass segment, while delivering solid rolling chip volume growth without compromising our disciplined approach in this segment.”
As for the first six months of the year, the company reported net revenue of $1,766.5m compared with just $1.141.2m the year before. This will likely continue after the acquisition of Studio City in Cotai with Ho adding,
“This project is another significant milestone for the Company, and we believe its completion will complement and expand our current portfolio of gaming assets in Macau. Our interest in Studio City represents a unique and attractive opportunity for our shareholders and employees that further demonstrates our long term commitment to Macau. We continue to work on our design plans and are currently evaluating financing plans, including a bank loan and other debt financing, to fund this project. We look forward to working closely with the Macau government to bring this project to completion.”
Melco Crown operates three casinos on the Far East gambling enclave of Macau and saw shares shoot up by as much as 9% on production of their results.