City of Dreams Manila’s EBITDA rises 26% in Q4

THE operator of City of Dreams Manila reported a 26% increase in adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA), driven by the better performance across all gaming segments.

In a disclosure to the stock exchange on Wednesday, Melco Resorts and Entertainment (Philippines) Corp. (MRP) said adjusted EBITDA stood at $67.9 million in the fourth quarter of 2018, higher than the $53.8 million it posted in the same period a year ago.

However, MRP said City of Dreams Manila’s net revenues slumped 7% to $155.2 million in the fourth quarter from $167.5 million during the same period in 2017.

The results were disclosed in a financial report submitted by MRP’s controlling shareholder, Melco Resorts & Entertainment Limited (Melco), to the US Securities and Exchange Commission. Melco’s financial results were prepared in accordance with generally accepted accounting principles in the US, which are different from Philippine financial reporting standards.

“In the Philippines, City of Dreams Manila delivered another solid quarter underpinned by robust mass gaming revenue growth,” Melco Chairman and Chief Executive Officer Lawrence Ho said in the filing posted on the company website.

City of Dreams Manila’s rolling chip volume reached $2.4 billion during the October to December period, 17% lower than the same period a year ago’s record of $2.9 billion.

The company noted that win rate for the segment was higher at 3.7% against the fourth quarter of 2017’s 3.1%. This was also beyond the rolling chip win rate range of 2.7-3%.

For the mass gaming segment, mass market table games drop went up to $197.3 million, four percent higher year on year. Hold percentage for table games also improved to 31.4% during the quarter, versus 30.9% in the same period a year ago.

Gaming machine handle for the quarter surged by 18% to $933.6 million, as win rate slowed to 5.3% versus 5.5% in the same period last year.

Meanwhile, non-gaming revenues at the City of Dreams Manila slipped by six percent to $29.4 million, versus $31.4 million in the same period a year ago.

MRP has yet to disclose its own full-year 2018 financial results.

City of Dreams Manila is among the three integrated resort and casinos operating in the state-run Entertainment City in Parañaque City, with the others being Solaire Resort and Casino and Okada Manila.

The Philippine Stock Exchange, Inc. earlier said that MRP is “de facto delisted” from the local market, after it has made no commitments to increase its public float to reach the minimum requirement of 10%. Its public float currently stands at 2.06%.

MRP’s parent had conducted a tender offer for all shares held by the public last year, supposedly to consolidate its shareholdings in the company. Prior to that, the company sought to voluntarily exit the stock market as it cited it has no longer able to raise capital through the exchange, which is the company’s main reason for listing in the first place.

Shares in the company are priced at P7.25 each, based on its closing price last Dec. 10. —