With the company’s foundation stones defined as Relevance, Innovation, Integrity and Harmony, Melco Crown Entertainment has published its Annual Report 2008. Expressing its future as building a strong, well-recognised and highly regarded industry leader by developing high quality integrated entertainment properties and delivering differentiated services and distinctive experiences to guests from around the world, the company describes the opening of City of Dreams in Macau as a ‘game changing’ transition for Melco Crown Entertainment on almost every measurable level.

Co-Chairman and CEO Lawrence Ho writes, “Our company will grow from approximately 4,000 to more than 10,000 employees. We will dramatically expand our gaming portfolio, which to date has been limited to operating approximately 1,300 slot machines across our Mocha Club network of outlets, and being almost exclusively focused on gaming promoter supported rolling chip, or VIP, baccarat play at Altira Macau. City of Dreams positions us to compete for the central ground – the premium mass-market customers and the high-rolling table game customers from across the region who drive the financial performance of our competitors.”

The company points to its financial stability, commenting that its focus on building long-term strength into its balance sheet pre-dates the volatile capital markets that are a dominant feature of the current global economy. “Successive fund raising events in the period between the initial listing of Melco Crown Entertainment on NASDAQ in December 2006 and the end of 2008 have raised in aggregate approximately US$3.65 billion. These funds, together with the cash and assets invested by the two founding shareholders, combine to ensure that Melco Crown Entertainment has one of the more conservatively funded balance sheets amongst its casino developer peers globally.”

The three business divisions of Melco Crown Entertainment are City of Dreams, Altira Macau (renamed Crown Macau) and Mocha Clubs. City of Dreams is called a ‘must experience’ combining entertainment, attractions, accommodation, dining and shopping, that will become a leading entertainment destination. Altira Macau is described as a boutique casino hotel tailored to meet the cultural preferences and expectations of its gaming promoters and its Asian rolling chip customers. The Mocha Clubs offer gaming outside the conventional casino setting with upscale décor and café ambience targeting maas market and casual gaming patrons.

In his letter to shareholders Lawrence Ho says, “We live and operate in the most dynamic region in the world where change to the status quo is inevitable. To remain relevant and competitive, we need to combine a fundamental, long-term belief in our core market with an appreciation of the ever-evolving landscape. We are ‘in the trenches’ every day, which allows us to stay vigilant to the evolving tastes and aspirations of our customers. We embrace change and recognize that we must remain nimble. To use a hockey metaphor, we don’t skate to where the puck is, we skate to where the puck is going… always anticipating, always adapting.”

He adds, “We are an Asian company catering to Asian customers. We are uniquely attuned to the evolving tastes of this demanding and discriminating audience of increasingly affluent individuals. We firmly believe that we are in the early years of the China Century with Chinese consumers providing the engine for growth for the global economy. We are confident that Macau and our business model are heavily leveraged to this tectonic shift in the global marketplace.” (E-06.23.09)

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