THE operator of City of Dreams Manila reported a six percent decline in revenues last year, as the VIP market’s slowdown tempered the growth in the mass gaming segment.

In a disclosure to the stock exchange on Monday, Melco Resorts and Entertainment (Philippines) Corp. said net revenues stood at $612.9 million in 2018, lower than the $649.3 million it booked in 2017.

The VIP gaming segment saw rolling chip volume of $11.097 billion, 3.6% lower year on year. Win rate also improved to 3.2% from 3.1% a year ago.

Mass market table drops reached $787.3 million, 14.6% higher than the $686.9 million posted in 2017. Hold percentage was also higher at 31.7% against 29.6% last year.

For gaming machines, volumes amounted to $3.55 billion, 16.6% higher compared to 2017’s $3.04 billion. Win rate slowed to 5.5% versus 5.8% last year.

As of end-2018, the City of Dreams Manila had an average of 1,708 slot machines, 221 electronic gaming tables, and 300 gaming tables.

Meanwhile, non-gaming revenues were flat at $117.1 million for this year.

Despite the lower net revenues, adjusted earnings before interest, taxation, depreciation, and amortization firmed up 15% to $269.2 million.

“In the Philippines, City of Dreams Manila delivered another solid year underpinned by robust mass gaming revenue growth,” Melco International Development Ltd. Chairman and Chief Executive Officer Lawrence Yau Lung Ho said in a message to shareholders disclosed on the Hong Kong Stock Exchange.

Melco International is the largest shareholder of Melco Resorts & Entertainment Ltd., which in turn is the largest shareholder of MRP.

Melco International said it will continue to expand its premium offerings in the country due to the integrated resort and casino’s stable growth performance alongside the development of more transportation infrastructure projects.

“(T)he Group anticipates continued growth in this market since it is expected that regional and global tourist arrivals, overnight visitors from ASEAN countries and overall gaming activity at our resort in Manila will be further boosted,” the company said.

The City of Dreams Manila is one of three integrated resort and casino complexes inside the Philippine Amusement and Gaming Corp.’s Entertainment City in Parañaque City. It stands alongside Bloomberry Resorts Corp.’s Solaire Resort & Casino and Universal Entertainment Corp.’s Okada Manila.

Trading of shares in MRP are currently suspended as the company has yet to comply with the minimum public ownership rule set by the Securities and Exchange Commission. — Arra B. Francia

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