Although Melco Crown Entertainment said on Thursday that visitor trends after one month of trading at the newly opened City of Dreams ‘continue to provide a solid foundation’ for the casino and entertainment resort, it also reported a lower than expected market share. The rolling chip hold percentage was 0.8%, well below the 2.8% target. The hold percentage on mass market table games was within the anticipated 16%-18% range.

Gaming machine handle on the approximately 1,320 machines operating last month was around US$81 million. Total rolling chip volume was US$1.94 billion for the period but performance demonstrated significant week to week sequential improvement. On average some 41,000 people visit the resort each day but the casino failed to reach the expected minimum 10% of the Macau market, reaching only 7%.

It has been reported that Macau’s gross gaming revenue has fallen 12% in the first half of this year from the first six months last year. In the second quarter revenue fell 2%. In June revenue was down 17% compared to June 2008. Melco Crown Entertainment, which had just the one operation – the Altira - for most of the first half, held around 9% of the Macau market. SJM, controlled by Stanley Ho, holds about 30% with 19 casinos. It is considered to early to tell if City of Dreams will be a success. (E-07.06.09)

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