Yesterday Melco Crown Entertainment reported its unaudited financial results for the second quarter ended June 30, 2010. Net revenue was US$573.6 million, representing an increase of approximately 166% from US$215.8 million for the comparable period ended June 30, 2009. Adjusted EBITDA was US$73.4 million for the second quarter of 2010, as compared with an Adjusted EBITDA loss of US$23.8 million in the second quarter of 2009. The year-over-year improvements in net revenue and Adjusted EBITDA resulted primarily from the opening of City of Dreams in June 2009, providing only a limited contribution to the prior year comparable.

Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment commented, "Good progress has been made over the past quarter at City of Dreams, as we continue to derive benefits from the growth in our patron database and as our various brand building initiatives build momentum. Rolling chip volume at City of Dreams increased 24% quarter sequentially and we are pleased with the continued improvement in the underlying fundamentals of this part of our business.”

On a U.S. GAAP basis, Melco Crown Entertainment recorded a net loss for the second quarter of 2010 of US$30.1 million, or a loss of US$0.06 per ADS, compared with a net loss of US$144.0 million, or a loss of US$0.30 per ADS, in the second quarter of 2009. The reduction in the net loss resulted from a significant year-over-year improvement in the operating performance of Altira Macau and from having a full quarter of earnings contribution from City of Dreams, partially offset by increased depreciation and amortization expenses and lower capitalized interest expenses following the opening of City of Dreams, together with certain non-recurring expenses related to the refinancing of approximately US$600 million of bank debt through the issuance of a high yield bond completed in the current reporting quarter.

Commenting on the performance of the hotel casino Altira Macau, previously Crown Macau, Ho said, "Altira Macau continues to perform much better under the traditional VIP business model to which we transitioned late last year. Profitability continues to benefit from the commission cap implemented last December. A provision of US$9 million was taken in the reported quarter against an amount due from a former contracting party. This provision is considered to be non-recurring."

The company has also announced the resignation of Greg Hawkins, President of City of Dreams, after approximately 5 years in Macau. After a comprehensive review of its operating management structure, Melco Crown Entertainment is to implement, effective next month, a new operating management structure organised along functional as opposed to dedicated property responsibilities, to be led by newly created Co-Chief Operating Officer positions. Ted Chan, currently the President of Altira Macau, has been promoted to Co-COO, Gaming, overseeing gaming activities across the entire organization. Nick Naples has joined Melco Crown Entertainment from Sands China, where he held the position of Consulting Executive Vice President, and has been named Co-COO, Operations. He will be responsible for all non-gaming operating activities across the entire company.

Net revenue for the second quarter 2010 was up at both City of Dreams and Altira as well as at the Mocha Clubs properties, the company’s gaming machine operations in Macau. Ho commented, "The time is right to implement a new operating management structure that recognizes that we have evolved as an organization and reflects our more mature business model. This new structure will facilitate a more streamlined approach to managing the operations at our three properties and will allow our senior executives to be more focused on their functional areas of responsibility. I am confident that these changes will yield meaningful benefits to our operations, both in terms of revenue generation and resource efficiency." (E-07.29.10)

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