Melco Crown Entertainment Limited (MPEL) yesterday reported its unaudited financial results for the second quarter and six months ending June 30, 2008. For the second quarter of 2008, net revenue was US$384.6 million, up from US$45.1 million for the comparable period ending June 30, 2007. The revenue increase was primarily driven by a full quarter of substantially improved operating performance at Crown Macau, which opened during the second quarter 2007. The Company recorded a net loss for the second quarter of 2008 of US$5.7 million compared to a net loss of US$69.2 million in the second quarter of 2007.

Net revenue at Crown Macau was US$361.1 million versus US$26.0 million in the quarter ending June 30, 2007. Rolling chip volume totalled US$18.5 billion for the second quarter of 2008, up from US$1.0 billion in the second quarter of 2007. The rolling chip table games hold percentage in the second quarter of 2008 (calculated before discounts and commissions) was 2.7% versus 2.4% recorded in the second quarter of 2007. The company has decided to modify its target rolling chip hold percentage from 2.7% to 2.85%, which it considers better reflects the life-to-date performance of its rolling chip operations since the commencement of material rolling chip volumes at Crown Macau.

Lawrence Ho, Chief Executive Officer and Co-Chairman of MPEL, commented, “Competition for rolling chip business in Macau during the second quarter became a lot more aggressive, with higher commission rates and a significant expansion in the facilities being offered by concessionaires to junket operators. Crown Macau, the first of our three property developments planned for Macau, is strategically skewed towards the rolling chip segment of the market and has successfully held its position as the highest volume rolling chip property in Macau during the second quarter of 2008.”

He continued, “We remain firm in our view that Macau’s future as the gaming capital of Asia is assured. This market is still in its infancy stage of development and one of the characteristics of a nascent market is rapid-fire change. In this dynamic environment, we will continue to develop innovative strategies to aggressively defend Crown Macau’s position as the market leader in the rolling chip segment.”

Commenting on MPEL’s City of Dreams project Laurence Ho said, “As our vision for City of Dreams is further realized in Cotai, we remain confident that we are developing the market-leading, must-see integrated urban casino resort in Macau. We believe that City of Dreams will help to further drive the development of the emerging multi-night stay market in Macau and we believe it will deliver attractive returns for our investors.” The company continues to review and develop its plans for the development of the Macau Peninsula project. Those plans are subject to completing the acquisition of the site and certain conditions including meeting applicable Macau regulatory requirements. (E-08.15.08)

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