City of Dreams Manila operator's income surges on better casino profit

MANILA, Philippines – City of Dreams Manila operator Melco Resorts and Entertainment (Philippines) Corporation saw its net income surge to P496.6 million in the 1st 9 months of the year, which was a turnaround from the P1.59-billion net loss in the same period last year.

This improvement is mainly due to higher casino revenues. (READ: Belle plans to expand City of Dreams)

In a filing with the Philippine Stock Exchange (PSE), Melco said its 9-month net operating revenues increased by 49.4% to P24.2 billion, from P16.2 billion in the same period a year ago.

Casino revenues surged by 53% to P22.5 billion for the January to September period, from P14.7 billion for the same period a year ago.

"In the Philippines, City of Dreams Manila continues to enjoy strong year-on-year growth across all gaming segments, which enabled the property to deliver over 27% year-over-year growth in adjusted property EBITDA (earnings before interest, tax, depreciation, and amortization), despite new supply in the Philippines," Melco chairman and chief executive officer Lawrence Ho said.

Meanwhile, Melco's hotel revenues were up by 8% to P771 million in the 1st 9 months of 2017, from P711 million for the same period a year ago. This was driven by occupancy rates across Crown Towers Hotel, Nobu Hotel, and Hyatt City of Dreams Manila, which averaged at 89.6%.

Other non-casino sales – including food and beverage, entertainment, and retail – reached P508.9 million in the 1st 9 months of 2017, from P378 million in the same period a year ago.

For the 3rd quarter alone, net income stood at P117.3 million, a reversal from the P173.5-million net loss in the same quarter last year. (READ: City of Dreams operator optimistic about PH gaming market)

Also in the 3rd quarter of 2017, Melco's operating revenues reached P7.5 billion, from P6.1 billion in the same quarter in 2016. This was driven by casino revenues, which reached P7 billion, and non-casino revenues of P541 million.

As of September this year, City of Dreams Manila has around 286 gaming tables, 1,605 slot machines, and 176 electronic table games. –