Melco Crown Entertainment Limited (MPEL), a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, yesterday reported its unaudited financial results for the first quarter ending March 31, 2009. For the first quarter of 2009, net revenue was US$216.5 million, down from US$482.9 million for the comparable period ending March 31, 2008. The decrease in revenue was primarily driven by an abnormally high win rate and greater rolling chip volume at Altira Macau (previously Crown Macau) in the first quarter of 2008.

Lawrence Ho, Co-Chairman and Chief Executive Officer of Melco Crown Entertainment commented, "As previously announced, City of Dreams is scheduled to open on June 1, and the budget is unchanged. The opening of City of Dreams is a turning point for our company and a major milestone for Macau in its transformation into Asia's premier leisure destination. We are less than two weeks away from the realization of many years of hard work and determination. Our aim was to meaningfully raise the bar for gaming entertainment in Asia, particularly for the emerging premium mass market customer, and to profitably diversify our portfolio of assets into the most attractive market segment in Macau. I believe that we will be successful on both counts, which should be a major driver of shareholder value."

Mr. Ho continued, "Our financial position remains strong and our balance sheet is one of the best in the gaming industry. We held approximately US$755 million of cash, excluding cage cash, at the end of the first quarter, and we expect to spend approximately US$244 million on construction activities and pre-opening preparations at City of Dreams from the start of the current quarter through its opening. Subsequent to the end of the first quarter of 2009, we completed a follow on offering that injected approximately US$174 million of net proceeds into our balance sheet, further solidifying our financial structure and positioning us for growth going forward."

For the quarter ending March 31, 2009, net revenue at Altira Macau was US$183.6 million versus US$459.9 million in the quarter ending March 31, 2008. Mr. Ho added, "Although we had a difficult comparison for Altira Macau in the first quarter, we are pleased with the property's results. Despite an 11% decline in rolling chip volume and a lower hold percentage, our sequential EBITDA performance remained solid due to strong cost containment programs."

Rolling chip volume totaled US$9.1 billion for the first quarter of 2009, down from US$19.4 billion in the first quarter of 2008. The rolling chip table games hold percentage in the first quarter of 2009 (calculated before discounts and commissions) was 2.79% versus 3.13% recorded in the first quarter of 2008. Our target rolling chip hold percentage is 2.85%. In the mass market table games segment, drop (non rolling chip) totaled US$76.0 million in the first quarter of 2009, down from US$95.5 million generated in the first quarter of 2008. The mass market table games hold percentage was 13.7% in the first quarter of 2009, below our expected range for mass market table games hold percentage of 16%-18%. The mass market table games hold percentage for the first quarter of 2008 was 15.8%.

Total non-gaming revenue at Altira Macau in the first quarter of 2009 was US$7.8 million, down from US$9.4 million in the first quarter of 2008. Occupancy per available room in the first quarter of 2009 was 89% and the average daily rate (ADR) was US$234 per occupied room. This compares with occupancy and ADR of 92% and US$233, respectively, in the first quarter of 2008.

Net operating revenue from Mocha Clubs totaled US$24.7 million in the first quarter of 2009, up from US$22.9 million in the first quarter of 2008. Mocha Clubs generated US$6.8 million of adjusted EBITDA in the first quarter of 2009, which compares with US$6.5 million in the first quarter of 2008. The number of gaming machines in operation at the Mocha Clubs averaged 1,273 in the first quarter of 2009, an increase from 1,045 in the first quarter of 2008. Average net win per gaming machine per day was US$211 in this period, as compared with US$241 in the same period in 2008. On February 20, 2009, Mocha Clubs' Mocha Square venue reopened, which added 75 gaming machines to its market-wide installed base at eight locations throughout Macau.
(E-05.21.09)

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