On February 12, 2015, Melco Crown Entertainment (MPEL) reported results for the fourth quarter and full year ending December 31, 2014. Las Vegas Sands (LVS) and Wynn Resorts (WYNN) released their 4Q14 results on January 28 and February 3. MGM Resorts (MGM) is scheduled to release its 4Q14 results on February 17.
Investors may invest in all of these companies through the VanEck Vectors Gaming ETF (BJK). The Consumer Discretionary Select Sector SPDR Fund (XLY) gives investors broader exposure to the leisure industry. Melco Crown Entertainment comprises ~4% of BJK.
Net revenue for 4Q14 was $1,121.4 million—down 20% year-over-year, or YoY. The decline in net revenue was primarily attributed to lower group-wide rolling chip revenue and mass market table games revenue. We’ll discuss this later in this series.
- Net revenue at City of Dreams was $895.5 million—down 18.3% YoY
- Net revenue at Altira Macau was $173.1 million—down 30.1% YoY
- Net revenue from Mocha Clubs was $32.8 million—down 15.5% YoY
Gaming machine handle for 4Q14 was $1,351.1 million—up 4% from $1,304.2 million generated in 4Q13.
For the full year ending December 31, 2014, Melco Crown Entertainment reported net revenue of $4.8 billion—down 5.9% YoY. This was primarily attributed to lower group-wide rolling chip revenue. It was partially offset by improved group-wide mass market table games revenue.
MPEL management comments
Lawrence Ho, co-chairman and CEO of Melco Crown Entertainment, commented that “While 2014 was a challenging year for Macau, I am pleased with both our relative operating performance and the meaningful advancements we have made towards realizing our significant growth pipeline, positioning us to succeed now and in the future.”
In the next part of this series, we’ll discuss Melco Crown Entertainment’s adjusted property earnings in 4Q14.