Melco Crown posts narrower net loss in Q3

Melco Crown (Philippines) Resorts Corp. narrowed its losses in the third quarter of the year, on the back of better operating revenues from City of Dreams Manila.

The casino resort operator reported a P1.177 billion net loss in the July to September, 34 percent compared with P1.789 billion in net loss a year earlier.

The company said it registered “... better operating revenues... during current quarter.”

Net operating revenues ballooned to P4.242 billion, up 15,713 percent from P26.8 million.

“The increase in revenue was due to the opening of the integrated casino resort since December 2014,” Melco said.

From a soft opening on December 2014, City of Dreams Manila formally launched in February 2015. It considered the third quarter its development stage.

Revenues from casino operations amounted to P3.883 billion, which accounted for 90 percent of total revenues. Non-casino revenues reached P409 million.

However, taxes and license fees, inventories, depreciation and amortization, and other expenses ate up on revenues. Payments to Philippine parties, foreign exchange losses, and development expenses also helped drive costs and expenses higher.

Operating costs and expenses rose to P4.677 billion, up 236 percent from P1.391 billion. 

Melco's third quarter results widened its year-to-date net loss to P6.087 billion. It was better by 45 percent from P4.190 billion in net loss a year earlier. Expenses rose by 422 percent to P13.866 billion from P2.654 billion in the comparable nine months to September.

Net operating revenues totaled P9.921 billion, up 13,712 percent from P71.835 million. – Jon Viktor Cabuenas/VS, GMA News