Universal Entertainment 2Q Results; Melco Crown Philippines reports losses

TAGs: Kirby Garlitos, Manila Bay Resorts, melco crown philippines, Philippines, Universal Entertainment

Kazuo Okada’s Universal Entertainment has posted a consolidated net income of JPY4.33 billion ($38 million) in the second quarter of its fiscal year compared to the JPY671 million it earned a year ago. The firm also reported an increase to its non-operating income from JPY230 million in 2Q 2013 to JPY698 million in 2Q 2014.

Universal Entertainment 2Q Results; Manila Bay Resorts construction update; Melco Crown Philippines reports losses on construction and hiring costsHowever, the company posted extraordinary losses of JPY442 million, 237% more than the JPY131 million in the prior year. Universal said that a majority of the extraordinary losses can be attributed to “subsidiaries and associates”.

Likewise, the company reported a 31% increase in consolidated net sales to JPY38.4 billion while consolidated operating income shot up 73% to JPY9.2 billion.

Meanwhile, construction of Manila Bay Resorts continues to take shape. Okada said framework construction on the hotel towers is now on its ninth floor, adding another three floors since its last update during its first quarter fiscal results on June 30.

“The development strategy of this project, including the opening schedule and financial policy, which is being examined, will be disclosed in a timely manner,” the company said.

Okada earlier hinted a late 2015 timetable for the opening of Manila Bay Resorts. But Okada and Universal Entertainment must still navigate their way through a maze of legal cases in the Philippines, including bribery charges slapped against the Universal chairman and Universal’s lack of a local business partner. Delays on the latter prompted PAGCOR to warn the company in October about the possibility of forfeiting a Php100 million guarantee tied into Okada’s casino project.

Melco Crown (Philippines) losses mount as City of Dreams Manila launch nears

Melco Crown (Philippines) Resorts Corp reported Php1.79 billion in losses in the third quarter of 2014, largely brought about by ballooning expenses ahead of the launch of City of Dreams Manila.

The Philippine arm of Macau’s Melco Crown Entertainment submitted a filing to the Philippine Stock Exchange, detailing the 162% jump in costs compared to the Php684.09 million it spent in third quarter of 2013.

“We are currently in the development stage and as a result, there is no revenue and cash provided by our intended operations, except for a management fee income from MCE (Philippines) Investments Ltd,” the company said in its filing.

The 3Q losses adds up to a nine-month loss amounting to Php4.19 billion, 147% more than the Php1.69 billion it lost in the same period a year ago.

The large scale recruitment drive ahead of next month’s soft opening saw Melco Crown (Philippines) increase its workforce by adding 2,200 employees in the last quarter. That brought the total number to 4,679 jobs as of September 30.

The losses in Q3 2014 aren’t particularly concerning for the casino developer. Melco foresaw these numbers as “typical for a development stage company” and believes more losses will come as it continues to spend for construction and employment before the resort and casino makes its grand opening in the first quarter of 2015.

Melco Crown (Philippines) did post revenues of Php26.29 million in the third quarter of 2014, marginally higher than last year’s numbers.


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