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Melco Crown Entertainment’s operations are focused on Asia

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Business overview

Established in 2004, Melco Crown Entertainment (MPEL) owns, develops, and operates casino gaming and entertainment resort facilities. It’s focused on Asia. The company’s American depository shares, or ADS, are traded on the NASDAQ Global Select Market under the symbol “MPEL.”

Melco Crown Entertainment is part of ETFs like the VanEck Vectors Gaming (BJK). BJK helps investors gain access to the casino industry. To learn more about the company, read Melco Crown Entertainment: An Investor’s Essential Guide To The Company.

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Operating segments

Melco Crown Entertainment operates through its subsidiary Melco Crown—Macau—in Asia. The company has two casino-based operations—City of Dreams and Altira Macau. It has operations that aren’t casino-based at its Mocha Clubs.

  • City of Dreams is an integrated casino resort that targets high-end customers and rolling chip players from regional markets across Asia
  • Altira Macau is a casino and hotel that mainly caters to Asian rolling chip customers
  • Mocha Clubs are operations in Macau that aren’t casino-based

In December 2014, Melco Crown Entertainment opened its new casino resort in the Philippines—City of Dreams Manila. It’s fully operational. It’s an integrated resort that offers about 380 gaming tables, 1,700 slot machines, and 1,700 electronic table games.

Series overview

Other companies in the industry include Las Vegas Sands (LVS), Wynn Resorts (WYNN), Galaxy Entertainment, SJM Holdings, and MGM Resorts (MGM).

In this series, we’ll discuss why Melco Crown Entertainment’s revenue decreased significantly in 4Q14. We’ll analyze its rolling and mass market segment performance. We’ll also discuss why Melco Crown Entertainment’s share price increased despite negative 4Q14 results. Finally, we’ll talk about investing in Melco Crown Entertainment and its positioning in Macau.

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