Melco Crown Entertainment's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Melco Crown Entertainment Limited (MPEL)

Q2 2012 Earnings Call

August 7, 2012 8:30 am ET

Executives

Geoffrey Stuart Davis – Chief Financial Officer

Lawrence (Yau Lung) Ho – Executive Co-Chairman and Chief Executive Officer

Analyst

Anil J. Daswani – Citigroup Global Markets Asia Ltd.

David Bain – Stern Agee & Leach, Inc.

Billy Ng – BofA Merrill Lynch

Cameron McKnight – Wells Fargo

Simon Cheung – Goldman Sachs (Asia) LLC

Praveen K. Choudhary – Morgan Stanley Asia Ltd.

Presentation

Operator

Geoffrey Stuart Davis

[Call Starts Abruptly] everyone for joining us today for our second quarter 2012 earnings call. On the call with me today are Lawrence Ho, Ted Chan, Constance Hsu, and Ross Dunwoody.

Before I get started, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provision of federal securities laws. Our actual results could differ from our anticipated results.

I will now turn the call over to Lawrence.

Lawrence (Yau Lung) Ho

Thanks Geoff. And thank you everyone for joining. In the second quarter of 2012 we've reported EBITDA of US$204 million on approximately US$940 million of net revenue, delivering an EBITDA margin of approximately 22%. These results highlight the importance of our mass market segment and delivering a more stable earnings and cash flow stream. At City of Dreams, our mass table games GGR grew 34% year-on-year, slightly ahead of the market-wide growth rate, despite the introduction of new supplying in Kotai.

Our Rolling Chip segment continues to be impacted by our table optimization strategy. This strategy has resulted in further table is being shifted from Altira to City of Dreams, as well as the movement of some tables from VIP to mass, during the second quarter of 2012. Whilst somewhat disruptive as it is happening, this initiative should set us up favorably going forward. The majority of this table optimization strategy has been implemented, and we're optimistic that we should see a more efficient use of tables on a group-wide basis in the longer-term.

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