THE OPERATOR of integrated resort and casino City of Dreams Manila reported flat revenue growth for the second quarter of 2018, weighed down by higher commissions and a change in accounting practices.
In a disclosure to the stock exchange on Wednesday, Melco Resorts and Entertainment (Philippines) Corp. (MRP) said net revenues at City of Dreams Manila reached $173.9 million for the three months ending June, 1.3% lower than the $176.2 million it generated in the same period a year ago.
“The decrease was mainly due to higher commissions reported as a reduction in revenue upon the adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board, partially offset by improved gross gaming revenues,” the company said.
Without a change in accounting standards, MRP said revenues would have increased by around 8% year-on-year to $191 million.
The integrated resort and casino recorded a 39% increase in earnings before interest, taxation, depreciation, and amortization (EBITDA) for the quarter to $87.3 million, which the company attributed to the better performance of its gaming segments.
Rolling chip volume generated $3 billion for the period, slightly lower than the $3.2 billion seen in the same quarter a year ago. Rolling chip win rate increased to 3.7%, with an expected win rate range of 2.7% to 3%.
Revenues from mass market table games grew by 16% to $196.9 million, after hold percentage went up to 29.4%, against a hold rate of 28.5% in the same period a year ago.
Gaming machine handles reported a 13% increase to $855.9 million, with a win rate of 5.9% — steady from the same quarter a year ago.
Meanwhile, non-gaming revenue from the City of Dreams Manila climbed by 3.9% to $29.1 million for the April to June period. The entertainment complex observed a 98% occupancy rate from its hotel rooms, improving from the 95% average occupancy rate in the same period a year ago.
The City of Dreams Manila is one of the 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.
The earnings report was part of the unaudited financial results for the second quarter of MRP’s controlling shareholder, Melco Resorts & Entertainment Limited, which was submitted to the United States Securities and Exchange Commission.
Shares in MRP surged 11.20% or 71 centavos to close at P7.05 each. — Arra B. Francia
