MELCO Crown (Philippines) Resorts Corp., owner and operator of City of Dreams Manila, posted a wider net loss of P4.9 billion in the first half of the year, attributed to taxes, fees and expenses related to the continuous improvement of the resort and casino complex.
The net loss in the first six months was more than double the P2.4 billion net loss recorded in the same period last year, according to a financial report posted on the Philippine Stock Exchange website.
Melco Crown said the bigger losses incurred in the first half were “primarily related to gaming tax and license fees, inventories consumed, employee benefit expenses, depreciation and amortization, other expenses, payments to the Philippine parties, as well as the interest expenses (net of capitalized interest), other finance fees, net foreign exchange loss and amortization of deferred financing costs as a result of continuous development of City of Dreams Manila, partially offset by operating revenues generated during the six months ended June 30.”
City of Dreams Manila saw operating revenues soar to P5.7 billion in the January to June period from P45 million a year ago following its soft opening in December and full launch in February.
Casino revenues accounted for 85 percent or P4.85 billion of total revenues while the rest came from non-casino earnings such as food and beverages, hotels, retail and others.
Revenues from hotel rooms — consisting of Crown Towers Hotel, Nobu Hotel and Hyatt City of Dreams Manila — stood at P294.5 million while other non-casino sales, which include food and beverage and retail, amounted to P343.2 billion.
Full-time resort operations increased operating costs and expenses to P9.18 billion from P1.26 billion in the same period last year.
Melco Crown’s net loss for the second quarter alone widened to P1.82 billion from P1.43 million a year ago even if operating revenues for the period surged to P3.33 billion from P23.7 million previously.
As of end-June, City of Dreams Manila operated some 272 gaming tables, 1,588 slot machines and 130 electronic table games.
The integrated resort and casino also offers other leisure facilities such as family entertainment center DreamPlay by DreamWorks; Centerplay, a live performance central lounge inside the casino; as well as Chaos and Pangaea Ultra-Lounge, the two night clubs situated within the architecturally-unique dome-like structure called Fortune Egg.
City of Dreams Manila is owned and operated by Melco Crown, in partnership with Sy-led companies Premium Leisure Corp., which is in charge of the casino operations, and Belle Corp. and PremiumLeisure Amusement Inc., which own the titles and rights to the 30-hectare parcel of land where City of Dreams Manila is standing.