Just three months ago Melco Crown Entertainment held 13% of the Macau gaming market with its flagship City of Dreams, the Altira Macau and its Mocha Clubs. At the end of July the company announced net revenue of US$573.6 million for the second quarter 2010, representing an increase of approximately 166% from US$215.8 million for the comparable period ended June 30, 2009. The year-over-year improvements in net revenue resulted primarily from the opening of City of Dreams in June 2009, providing only a limited contribution to the prior year.

After five years of planning and a budget of US$250 million, the water-based show ‘The House of Dancing Water’ has opened at City of Dreams in a theatre setting holding more water than five Olympic sized swimming pools. The spectacular show, described as an epic love story, is set to comply with the Macau government’s desire to diversify the entertainment offering beyond gambling and to boost Melco Crown revenue.

Last month Melco Crown beat Wynn Macau in gross gambling revenue to become the third ranking casino company in Macau, holding 16% of the market. SJM still holds 26% and Sands China holds 20% of the GGR. CEO Lawrence Ho has said that he expects Macau gaming revenue to grow over 50% this year, with more moderate growth next year. Melco Crown will be pushing its mass market and slots and at the end of July Ho commented:

"We delivered a 9% sequential quarterly increase in mass market table games revenue in the second quarter of 2010. We are seeing further modest improvement in our mass market business in the third quarter of this year and target a more marked step-up in mass market gaming volumes in the fourth quarter of this year on completion of the final planned phase of amenities at City of Dreams, the highlight of which will be the opening of The House of Dancing Water on September 17, 2010.” (E-09.17.10)

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