Today Melco Crown Entertainment, developer and owner of casino entertainment facilities focused on the Macau market, has reported its unaudited financial results for the third quarter and nine months ending 30 September 2009. Third quarter net revenue was up nearly 70% at US$500.3 million from third quarter 2008. The company says the increase was driven by the opening in June of City of Dreams.

The company recorded a net loss of US$39.5 million for the third quarter. The year-over-year increase in the net loss was primarily due to increased depreciation and amortization expenses and lower capitalized interest following the opening of City of Dreams. For the nine months ending September 30, 2009, the Company reported net revenue of US$932.7 million versus US$1,162.6 million in the nine months ending September 30, 2008. The year-over-year decrease in net revenue was driven by lower rolling chip volume and lower rolling chip hold percentage at Altira Macau in the first nine months of 2009 as compared to the same period in 2008.

Mr. Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment commented, "Our third quarter results reflect the first full quarter of contribution from City of Dreams. Rolling chip and premium mass volumes at City of Dreams hit the ground running, and continue to perform in-line with our expectations. We are especially pleased that we have delivered a strong rolling chip performance at City of Dreams without any negative impact on volumes or operations at Altira Macau. Our estimated share of gross gaming revenue in Macau in the third quarter of 2009 was approximately 17%. It is important to note that our gross gaming revenue market share has been achieved with player rebate rates at City of Dreams set at a level that is compliant with the announced commission cap legislation.”

He added, "Our grind mass market business has demonstrated sequential volume improvements across the reporting quarter and this growth trend has continued into the fourth quarter of this year. We have not yet reached our full potential in this segment and the recent opening of the Grand Hyatt Macau is now having a positive impact on performance. We remain on target to complete and open a number of major new entertainment attractions at City of Dreams in the coming months as part of the second phase of development, which will culminate in the launch of the Dragone-inspired show at the Theater of Dreams in approximately six months' time.”

The number of gaming machines at Mocha Clubs in Macau averaged 1,547 in the third quarter, an increase from the 1,029 average in third quarter 2008. Net win per machine per day fell to US$168 for the period compared to US$252 in the same period of 2008. However, according to Lawrence Ho, Melco Crown Entertainment remains confident in its outlook for Macau and believes its assets are strategically positioned to capitalize on the expected growth in the market. (E-11.17.09)

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