Melco Crown (Philippines) Resorts Corp., operator of the $1-billion City of Dreams Manila casino facility, said it remains optimistic about the Philippine gaming market despite increasing competition and a declining regional gaming market.
Melco Crown chairman and president Clarence Chung said in an interview following the annual stockholders’ meeting the company was narrowing its losses by reducing expenses and focusing on non-gaming amenities.
“While we continue ramping up our financial performance and I think we are more focused on cash flow and Ebitda in the time being... hopefully our accounting losses will be reduced given improved operations in the following years,” Chung said.
“The Philippine gaming market probably last year posted if not the highest growth in the world at least the highest in the region for the Asian region. Philippines gaming market has grown. So we are optimistic. We will do what we will do best to continue to make this as attractive as possible and give customers great experience,” Chung said.
Melco Crown property president Geoff Andres is also optimistic about City of Dream Manila given the improving infrastructure in the Philippines.
“We have built a good product, we are just getting started. With improved infra there is nothing but upside for all of us,” Andres said.
Andres noted that if the government decided to ease visa restrictions, it would lure more foreign players to come to the Philippines.
Melco Crown in the first quarter of 2016 narrowed its net loss to P1.13 billion from P3.08 billion in the same period last year on improved operating revenues and minimal increase in expenses.
First quarter operating revenues nearly doubled to P4.53 billion from P2.34 billion, due to bigger resort operations since the opening in December 2014.
Casino revenues, which accounted for 83 percent of the total net operating sales in the three months ending March 31, 2016, stood at P4.05 billion, up 108 percent from P1.95 billion recorded in the same period a year ago.
Nn-casino revenues, including hotels, food and beverage, entertainment and retail, amounted to P388.6 million in the first quarter of 2016.
Share price of Melco Crown on Monday jumped 12.8 percent to P3.35.