Post-Earnings Expert Notes - Melco Crown Entertainment

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Aug 14, 2014, 09:30 ET from Investor-Edge

LONDON, August 14, 2014 /PRNewswire/ -- has issued free post-earnings review on Melco Crown Entertainment Ltd (NASDAQ: MPEL) as the company featured in the headlines on Thursday, August 07, 2014, for reporting a 10.6% year-over-over decline in the adjusted property - earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second quarter of 2014. Additionally, the company's net revenue fell by 7.4% year-over-over during the reported period. Our free coverage report can be accessed at:

Earnings Overview 

For the quarter ended June 30, 2014, the company's adjusted property EBITDA declined to $313.64 million from $350.77 million in the year ago period, primarily due to lower group-wide rolling chip volumes and rolling chip win rate, which was partially offset by growth in the mass market table games segment. Melco Crown Entertainment Ltd's net non-operating expenses declined to $35.82 million in Q2 2014 from $55.57 million in the year-ago quarter, primarily due to higher capitalized interest in the current quarter. During the reported period, the company incurred capital expenditures of $318.8 million, primarily on Studio City and City of Dreams Manila as well as for various projects at City of Dreams (Macau), including the fifth hotel tower. The free research on MPEL can be downloaded as in PDF format at:

Melco Crown Entertainment Ltd's City of Dreams Macau, generated net revenue $967.5 million in Q2 2014, compared to $967.0 million in the second quarter of 2013. The company's Altira Macau registered net revenues of $181.6 million as compared to $278.8 million in the year ago quarter. While, it's Mocha Clubs' net revenue fell 2% year-over-year to $36.5 million in Q2 2014 from $37.2 million in Q2 2013.

The CEO and Co-Chairman of Melco Crown Entertainment Ltd, Lawrence Ho, said in a recent press release that the revenue from mass market table games business at City of Dreams grew by approximately 38% year-over-year and was the key driver to the company's solid underlying financial performance. Mr. Ho asserted that City of Dreams Manila, which is due to open later this year, will mark the company's evolution as regional player in the gaming and entertainment industry. He further added that the company's second large-scale resort in Cotai, Studio City will provide for entertainment proposition not yet available in the region and is on track to open in mid-2015.

During the second quarter of 2014, the Macau-based company's net revenue came in at $1,199.54 million, versus the Bloomberg estimate of $1,256.00 million. The company reported GAAP net income of $143.64 million, or $0.26 per diluted American Depositary Shares (ADS) in Q2 2014, compared with $181.05 million, or $0.33 per diluted ADS, in the second quarter of 2013. Bloomberg GAAP net income Expectation was $203.83 million, or GAAP EPS of $0.38 per diluted ADS. Sign up and read the free analyst's notes on MPEL at:

Stock Performance    

On the day of the earnings release, Thursday, August 7, 2014, Melco Crown Entertainment Ltd's shares declined 4.89% to end the session at $28.55. However, on the last close, Wednesday, August 13, 2014, the stock gained 2.44% to close at $29.38. The stock vacillated between $28.69 and $29.58 during the session. A total of 4.01 million shares were traded, which was marginally above its three months average volume of 3.98 million shares. Over the previous three trading sessions and over the last one month, the company's shares have fallen by 0.44% and 11.21%, respectively. Further, from the beginning of 2014, the stock has lost 24.45%. Melco Crown Entertainment Ltd's shares are trading below their 50-day and 200-day moving averages of $32.90 and $36.54, respectively. The stock traded at a PE ratio of 23.98 and has a Relative Strength Index (RSI) of 35.96. Visit Investor-Edge and access the latest research on MPEL at:

Sneak Peek to Corporate Insider Trading  

In the last one month, Melco Crown Entertainment Ltd has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on MPEL is available at:


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