Melco reports results

August 29, 2008 at 12:13 pm · Filed under Online Gambling

Stripping out non-cash and non-operating items, the Group's results actually improved from a net loss of approximately HK$323 million in 1H07 to a net profit of approximately HK$16 million in 1H08.

-- The Group's Macau gaming business, operated through 37.9%-owned NASDAQ listed Melco Crown Entertainment Limited ('MPEL') staged a major turnaround. The Group's attributable profit from MPEL amounted to approximately HK$131 million in 1H08 (1H07: attributable loss of HK$298 million).

-- Adjusted EBITDA of MPEL increased dramatically from a negative amount of US$13.3 million to a positive amount of US$113.5 million.

-- Crown Macau delivered impressive returns with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

-- Mocha Clubs continued to deliver a steady source of income to MPEL.

-- City of Dreams has its first phase and four hotels topped out and is scheduled for opening in 1H09.

Melco International Development Limited ('Melco' or the 'Group', HKEx Code: 200) announced its interim results for the six months ended June 30, 2008.

For the six months ended 30 June 2008, net loss attributable to shareholders amounted to approximately HK$614 million. However, stripping out those non-cash and non-operating items, results actually improved from a net loss of approximately HK$323 million in 1H 2007 to a net profit of approximately HK$16 million in 1H 2008. Please refer to the Results Announcement on the Stock Exchange website for detailed Financial Review.

Mr Lawrence Ho, Group Chairman and CEO of Melco, said, 'I am delighted that Melco secured separate listing for most of its business units at different stock exchanges in major financial centres around the world. In addition to giving the different business units their independent financing platform for supporting development, the endeavour has also helped to consolidate Melco's leadership in the leisure, gaming and entertainment sector in Asia. All business units are moving on the right tracks and we are confident that their efforts in streamlining their businesses are going to bear fruits soon and in turn have better contribution to Melco.'

Business Review

LEISURE, GAMING AND ENTERTAINMENT

Melco Crown Entertainment Limited (Nasdaq: MPEL - News)

The Group's gaming operation is principally conducted through 37.9%-owned NASDAQ listed associate Melco Crown Entertainment Limited ('MPEL'). The Group's attributable contribution from MPEL swung from a loss of approximately HK$298 million in 1H07 to a profit of approximately HK$131 million in 1H08. The turnaround was primarily due to Crown Macau's strategy to enhance its focus on the VIP rolling chip segment in Macau.

Crown Macau, the Group's first hotel-cum-casino project targeting high rollers segment, reported substantially improved operating performance with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

Mocha Clubs also reported improved results with solid growth in net operating revenue and adjusted EBITDA. Average net win per machine per day also improved to US$228 in the second quarter of 2008 from US$223 for the corresponding period in 2007.

Development of City of Dreams remains on track. The first phase of the project was topped out in April 2008 and is scheduled to open in 1H09. All four hotel towers in the project, namely, Crown Towers, Hard Rock and the twin-towered Grand Hyatt hotels, had topped out and interior fit-out work is well underway.

Elixir Gaming Technologies, Inc. (AMEX Ticker: EGT)

Elixir Gaming Technologies, Inc. (AMEX: EGT - News; 'EGT'), in which the Group has an effective equity interest of 39.8%, has made solid progress. As at 12 August 2008, there were 1,262 gaming machines installed on a revenue participation basis across 14 venues in the Philippines and Indo China. As a result of some start-up problems and delay in ramping up, contribution from EGT in 1H08 was below expectation. However, management have proactively made significant effort and initiatives to improve performance. These initiatives have started to bear fruits, as evidenced by the net win per machine per day improving to US$51 in July 2008, up from US$29 for the second quarter and US$33 in the month of June. Management expects to see continuing improvement in the second half of this year.

Melco LottVentures Limited (HKEx: 8198)

Melco LottVentures Limited, in which the Group has an effective interest of 37.5% on a fully diluted basis (assuming full conversion of all outstanding convertibles), made its first move to build a Pan Asian portfolio of lottery business. In March 2008, it announced the acquisition of the entire issued share capital of KTeMS Co. Ltd., which has a 14% equity interest in Nanum Lotto Co. Ltd., a consortium holding exclusive rights to operate off-line lotto games in South Korea. The acquisition was approved by shareholders at an extraordinary general meeting on 15 April 2008. Detailed due diligence check is near completion and the transaction is scheduled for formal closing before the end of September 2008.

Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT)

In May 2008, the Group successfully obtained a listing status for its ski resort business in China on the TSX Venture Exchange in Toronto, Canada. Through a series of complex transactions involving the reverse take-over of Virtual China Travel Services Co., Ltd. ('VCTS') (formerly NEX: CTX.H), the Group now owns 49.3% of Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT) ('MCR'). This is an important step for MCR which aspires to build a portfolio of premier ski resort destinations in China.

MCR acquired 5 ski resorts last year and plans to develop them into world- class luxury all-year mountain resorts. These mountain resorts also have significant potential for the development of premium real estates for discerning buyers. Related works have commenced, beginning with Sun Mountain Yabuli, situated in Harbin. The development at Yabuli comprises three new five-star hotels and is expected to be re-opened for business in the coming winter season towards the end of 2008. It has topped out two of the hotels and broken ground on its first luxury home project which will be available for sale later this year. Initial improvement work of the Sky Mountain Beidahu and Star Mountain Beijing resorts were completed. Planning for the development of Adventure Mountain Changchun resort and the private Lotus Mountain Club, is also underway.

'Melco is expanding its portfolio of leisure and entertainment facilities to serve the needs of an increasing number of middle-income leisure seekers in Asia. Despite economic uncertainties and tightening of travel restrictions for Mainland tourists visiting Macau, we remain optimistic on the medium and long term growth potential of China and the Asia-Pacific region. We will continue to respond to changing dynamics with well-thought-out strategies and imaginative products. While pursuing these ambitious goals, Melco will continue upholding the highest standards of corporate governance and social responsibility, while remaining committed to bringing its shareholders the highest possible returns,' Mr. Ho concluded.

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CET to sell casino stake

August 29, 2008 at 12:11 pm · Filed under Online Gambling

Cape Empowerment Trust (CET) - which expended much effort accumulating gaming assets over the last three years - on Friday made the surprise announcement that it intended selling off its significant minority holding in recently listed Grand Parade Investments (GPI).

The timing of the announcement is rather curious as GPI, which owns a major empowerment stake in the GrandWest casino in Cape Town along with smaller casino interests, is due to announce results early next week.

CET's sale of its GPI stake will be done "a competitive process", which means the best bid (or bids) for all or part of CET's GPI shares will be considered.

It would seem CET is hoping to get a better price for its GPI shares by this process. Selling the shares on the open market would be tricky because GPI has traded rather weakly since listing on the JSE a few months ago.

CET CEO Shaun Rai said GPI - while still "a very attractive company" - did not fit with CET's investment approach of investing in businesses it could control or enjoy significant influence over.

Rai told Fin24.com at the group's annual general meeting on Thursday night that CET was keen to focus on its property business and service sector offerings (like its fast growing security business).

On Friday Rai said much of the proceeds from the GPI sale could be used to reduce debt, chase new opportunities and re-invest in existing CET businesses.

He said CET would also consider buying back shares - something that would show directors' confidence in the group's longer term prospects.

GPI holds roughly 50m GPI shares, which means at current prices the group could fetch between R150m to R200m for its stake. A good number of GPI shares are held indirectly via trusts and empowerment companies, which might make selling the whole parcel of shares difficult.

The bottom line is that CET will realise a fair profit on its GPI shares - most of which were bought at markedly lower levels than GPI's current share price.

Possible buyers for CET's shares could include Trematon Capital Investments and Blue Bay Fund Managers, which rank as two of the bigger GPI shareholders.

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Mohegan Sun Opens Casino of the Wind with a Full House

August 29, 2008 at 12:09 pm · Filed under Online Gambling

An eager crowd, all wanting to be the first on the shiny, new slots and un-christened tables, were among the first to see Mohegan Sun’s 64,000 square-foot Casino of the Wind, which opened Friday.
After a Tribal blessing ceremony and brief press conference, the 100-foot curtain that has masked the casino as it was prepared for the public, was parted to reveal the space designed to reflect Mohegan Tribal traditions honoring the wind.

The space opened just 14 months after it broke ground in June 2007.

Designed by the Rockwell Group and WATG, the space includes a 42-table poker room and additional slots and table games, creating 45,000 square feet of new gaming space. Jimmy Buffett’s Margaritaville and Chief’s Deli, which returns to Mohegan Sun after a two-year hiatus, are also located within Casino of the Wind.

“Today, we begin a new phase of Mohegan Sun’s continuing growth as one of the premier gaming and entertainment destinations in the world,” said Bruce “Two Dogs” Bozsum, Chairman of the Mohegan Tribe. “Following in the footsteps of Casino of the Earth and Casino of the Sky, the Rockwell Group again utilized our Tribal traditions in their design and conception for the new Casino of the Wind.”

Casino of the Wind draws inspiration from solar phenomena, artistic representations of some of the Mohegan Tribe’s most timeless traditions are highlighted, including the spirits of the four winds: north, south, east and west.

“The central idea behind the design of Casino of the Wind is the re-interpretation of wind as it moves through space, transforming the surface it touches,” said Rob Holecek, CEO of WATG. “WATG has created an addition that blends gracefully and seamlessly, both aesthetically and functionally with the existing Casino of the Sky entrance, and yet is large enough to contain gaming, food & beverage and casino support functions.”

Some of the key design elements of the new space include a 35-foot high by 50-foot wide electronic and animated waterwall which acts as a projection screen, four 35-foot stacked solid glass clad columns and a custom chandelier over the new 30-seat bar.

“We have worked countless hours with the Mohegan Tribe to ensure their vision became a reality,” said David Mexico, Senior Designer for the Rockwell Group.

Casino of the Wind is part of Mohegan Sun’s second major expansion, Project Horizon, a $925 million expansion which will be complete in 2010. The first major expansion, Project Sunburst brought Casino of the Sky, The Shops at Mohegan Sun and Mohegan Sun’s hotel to the property in 2001.

“Just months shy of the 13th anniversary of Mohegan Sun, we stand here today to celebrate yet another major milestone in our history – the opening of Casino of the Wind,” said Mitchell Etess, President and CEO for Mohegan Sun. “As we get ready to celebrate Labor Day this coming weekend, I would like to thank the core of our success, our employees, and congratulate those staff who have recently been hired as we grow with Casino of the Wind.”

Over 350 new permanent positions were created for Casino of the Wind, as well as over 850 construction jobs. In total, Mohegan Sun projects adding 1,500 jobs to Mohegan Sun upon completion of Project Horizon in 2010.

Poker Room

With classic games like Texas Hold’ Em, Seven-Card Stud and Omaha, the 42-table poker room is designed to please gamers of all levels. Whether a novice or a pro, the new room filled with over twenty-three LCD 50-inch television, will have something for everyone, including a semi-private high-level area featuring seven high-limit tables.

Jimmy Buffett’s Margaritaville

The island experience is coming to New England just in time for the autumn chill, as Jimmy Buffett’s Margaritaville prepares to open its doors in late September to early October.

“We’re very excited about bringing the Margaritaville experience to Mohegan Sun,” said Craig Wilson, General Manager of Jimmy Buffett’s Margaritaville. “We believe we’ve found a perfect complement to that island state of mind in New England’s largest and most exciting gaming destination.”

The new 16,000 square-foot two-level restaurant, designed like a marina, will feature two unique floors of dining space, a retail boutique, concert stage and multiple bars and will be the only venue at Mohegan Sun with a waterfront view of the Thames River. The second floor will have open-air seating that will allow guests unobstructed views for miles while dining and relaxing. Besides serving up some serious margaritas, frozen concoctions, boat drinks and cold beer, Margaritaville offers its signature Cheeseburger in Paradise alongside island-inspired favorites such as Jamaica Mistaica Wings, Calypso Mahi Mahi and Key Lime Pie.

Chief’s Deli

After a two-year hiatus, Chief’s Deli makes its triumphant return to Mohegan Sun in the new Casino of the Wind. The walk-up restaurant will feature seating for over fifty to enjoy soups, salads, lox, grilled and cold sandwiches and desserts. The centerpiece of the menu is The Sturges, a Roasted Turkey Sandwich with American Cheese on White Bread, made just the way the late Chief Ralph Sturges ordered it at Chief’s Deli’s previous location in Casino of the Earth.

Gaming Galore

Complimenting the 300,000 square feet of existing gaming space in Mohegan Sun, Casino of the Wind adds 45,000 additional square feet of gaming space. With games like Blackjack, Roulette and Craps, the new 28 traditional table games under four decorative trellises offer something for everyone. For slot lovers, over 650 new machines from leading slot manufactures like WMS, Bally, Aristocrat and IGT will be on-hand.

With the addition of Casino of the Wind, Mohegan Sun is now home to over 6,700 slot machines and has over 375 table games throughout the 3.5 million square-foot facility.

About Mohegan Sun

Mohegan Sun is currently in the midst of Project Horizon – a multi-million dollar expansion that calls for a new 920-room hotel, featuring 261 House of Blues-themed rooms and an exclusive members-only House of Blues Foundation Room™. The expansion also includes additional retail and restaurant space, and the newly-opened 64,000 square-foot Casino of the Wind. Upon full completion in 2010, Project Horizon is expected to add more than 1.4 million square feet to Mohegan Sun’s existing structure.

Mohegan Sun, owned by the Mohegan Tribe, is one of the largest, most distinctive and spectacular entertainment, gaming, shopping and meeting destinations in the United States. Situated on 240 acres along the Thames River in scenic southeastern Connecticut, Mohegan Sun is within easy access of New York, Boston, Hartford and Providence and located 15 minutes from the museums, antique shops and waterfront of Mystic Country.

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Eastside Cannery Casino & Hotel Now Open to the Public

August 29, 2008 at 11:59 am · Filed under Online Gambling

Eastside Cannery Casino & Hotel opened its doors to the public Thursday, August 28 at 8 p.m. The $250 million Eastside Cannery Casino & Hotel is the latest addition to the Cannery Casino Resorts family and is the newest casino in the Boulder Highway gaming area.

"Eastside Cannery is an outstanding addition to Cannery Casino Resorts,"said William Wortman, co-owner and principal of Cannery Casino Resorts. "We are excited to have opened our doors to the public and we are confident the property will set the standard for casinos catering to the local Las Vegas market."

Located in the Boulder Highway gaming corridor, Eastside Cannery Casino & Hotel features a 16-story tower of bronze, glass and steel, with a distinctive saw-tooth roofline, making an iconic impression. Within the new 16-story hotel tower, there are 307 guest rooms and suites that showcase floor to ceiling glass windows giving the guests spectacular views of the mountains and the bright lights of the Las Vegas Strip. The oversized 450 square foot guest room decor and furnishings are reminiscent of the ongoing industrial theme of the property, but have a fresh 21st Century feel with wide screen plasma televisions in every room. Guests who book the corner suites are treated to an exceptional view while soaking in their in-room spas in their 600 square foot surroundings. Guests who book one of the five executive suites on the top floor are able to enjoy all the amenities in their 900 square foot surroundings.

On the casino level, guests can enjoy 65,000 square feet of gaming space complete with more than 2,000 slot machines, 26 table games, a 450-seat bingo hall, a live keno lounge, a first-class poker room and a top-of-the-line Race & Sports Book. For meeting planners, the Eastside Cannery Casino & Hotel has 20,000 square feet of ballroom and meeting space to service a variety of meeting and convention needs. The main ballroom is 17,000 square feet and can be divided into five rooms. There are two additional meeting rooms as well as two boardrooms off the main ballroom.

In addition, Eastside Cannery offers an array of dining options to fit any budget and craving, from the succulent prime rib served at Carve(SM) to the delectable seafood ceviche at Casa Cocina(R). Sweet Lucy's Tableside Buffet(SM) offers up a warm family atmosphere with a variety of dishes to choose from that the whole family can enjoy. The Deli(SM) provides a quick pick-me-up while watching the action in the Race & Sports Book or taking a break from the excitement of the casino floor. Snaps 24-Hour Cafe(SM) features traditional favorites from super-sized sandwiches to garden-fresh salads to hand-cut steaks. Slated to make its debut in the fall is the much-anticipated lounge and kitchen, ONE SIX(SM). Set atop the 16th floor, the ONE SIX will feature an amazing view of the Las Vegas skyline.

Cannery Casino Resorts, LLC, owns and operates the Cannery Casino & Hotel in North Las Vegas; the Rampart Casino within the Resort in Summerlin, also home of the J.W. Marriott Resort; and the brand new Eastside Cannery Casino & Hotel which will open its doors in August 2008. The company also owns and operates the Meadows Racetrack & Casino in Washington County, PA.

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