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
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» Melco Crown Entertainment Ltd. Q4 2009 Earnings Call Transcript
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Pleasingly, Altira's table yields have stabilized and have reached a more competitive level. We now work towards ramping up those tables, which have been mobilized to alternative uses in order to drive future operating performance. We continue to proactively manage our table allocation to ensure we not only maximize near-term performance, but ensure that we have appropriate operational flexibility to take advantage of the changing landscape in Macau.Notably, our performance in the Junket Rolling Chip segment on a volume basis was better than the estimated market-wide performance sequentially, despite the introduction of new supply. As another example of our commitment in driving our current portfolio of assets, we recently introduced a limited-run cabaret style show at City of Dreams. This better utilizes our Club CUBIC space, and provides another exciting entertainment offering to further differentiate City of Dreams. Importantly for Melco Crown, the market-wide mass market table games segment continues to demonstrate strong year-over-year growth, expanding over 33% during the second quarter of 2012. This once again reinforces our mass market focus strategy, particularly at the higher end of the market, which we believe will provide a more stable, loyal and profitable customer base for the foreseeable future. Visitation numbers from China continue to increase, with visitors from Chinese provinces and further abroad, such as Henan and Sichuan Province, delivering strong year-over-year growth, reflecting the broadening of the catchment area of Macau. We believe Macau is perfectly positioned to take full advantage of the increase in infrastructure spend and development in the region, improving access to the expanding addressable markets, particularly throughout China. We remain fully confident in the future of Macau and believe its future success as well supported by the long-term growth and increasing consumerism in our core feeder market, China, as well as a progressive and stable regulatory environment, together with an exciting infrastructure and development footprint from Macau and the broader region. We look forward to playing a key role in the development of Macau into the leading leisure and tourism destination in Asia.
Now moving on to our exciting pipeline of future growth opportunities. We recently received our revised formal land grant for Studio City. We are very grateful that the Macau Government has given us this unique opportunity to bring another world-class integrated resort to Macau, which we believe will further drive and broaden Macau's appeal as a world-class entertainment and leisure destination. We have also received our permit from the Macau Government, which allows us to restart our construction work at Studio City, giving us the ability to expedite the development of this exciting project.Studio City will aim to focus on the mass market segment, and will have approximately 1,600 5-star and luxury hotel room, approximately 200,000 square feet of retail, numerous food and beverage outlets, a range of uniquely themed interactive attractions, a multi-purpose theater, as well as capacity for approximately 400 to 500 additional gaming tables. As mentioned previously, the property's location is one of its key competitive advantages. Not only is Studio City directly adjacent to the increasingly important Lotus Bridge immigration center. And it also has direct access to one of only three light rail casino stops in Kotai, and it enables to book in the North and the South of the Kotai strip. We also recently entered into a memorandum of agreement for the development and operation of an integrated casino resort in Manila. This project represents an attractive opportunity to expand our footprint in Asia, allowing us to diversify and expand our sources of earnings and cash flow without impacting our ability to fully leverage our current portfolio of assets in Macau, or impact our ability to pursue either our strong pipeline with the development opportunities in Macau, or any other future regional opportunities. We look forward to keeping you updated on our progress in relation to both these important milestones for our company. Read the rest of this transcript for free on seekingalpha.com