QUOTE AND NEWS
Motley Fool  Jan 28  Comment 
Macau's gaming revenue is down but long-term the dip may be good for the region's business.
Market Intelligence Center  Jan 21  Comment 
Melco Crown Entertainment Ltd (MPEL) is a good candidate for a covered call at the $19.66 level. The Jan. '16 call at that price should fetch a credit of about $4.20, which means the entire position has a net debit of about $17.64. This trade has...
Benzinga  Jan 10  Comment 
After a 10-month long and more than 50 percent decline from peak to trough, is the collapse in Melco Crown Entertainment Ltd (ADR)’s (NASDAQ: MPEL) share price finally over? A technical assessment of Melco’s recent trading indicates that...
Benzinga  Jan 5  Comment 
Analysts at Morgan Stanley recently upgraded Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL) from Equal-weight to Overweight and setting a $28 price target. Melco owns and operates casino and entertainment properties in Macau, China. The...
MarketWatch  Jan 4  Comment 
Dual-listed casino operator Melco Crown applies to delist from the Hong Kong Stock Exchange just three years after listing its shares in the Chinese financial hub, citing limited fundraising opportunities and onerous compliance obligations and costs.
The Australian  Jan 4  Comment 
A DECISION by James Packer’s Melco Crown to delist from Hong Kong highlights one of the challenges facing Western companies in Asia.
The Australian  Jan 3  Comment 
CASINO operator Melco Crown Entertainment, the joint venture involving James Packer, plans to delist in Hong Kong.
Wall Street Journal  Jan 3  Comment 
Dual-listed casino operator Melco Crown applied to delist from the Hong Kong Stock Exchange, citing limited fundraising opportunities and onerous compliance costs.
Benzinga  Jan 2  Comment 
Melco Crown Entertainment (NASDAQ: MPEL) announced on Friday that its Board of Directors unanimously approved a proposal to voluntarily withdraw shares from trading on Hong Kong's Main Board of the Stock Exchange for "reasons of cost and...




 
TOP CONTRIBUTORS

Melco-PBL Entertainment (NASDAQ: MPEL) develops, owns and operates casinos in Macau, China. It is the only pure-play Macau casino traded on U.S. exchanges, and one of only six companies authorized to run casinos on the island (others include MGM, Wynn and Las Vegas Sands). MPEL owns and operates the Crown Macau Hotel Casino. MPEL draws day-trippers and tourists of all economic background with its various gambling establishments due to its strategic proximity to China and other fast-growing Asian economies.

Business Overview

The great majority of MPEL’s revenue is generated from its casinos. Income from other sources, including rooms, food and entertainment remains insignificant.[1] It is also important to note that MPEL’s only source of income is from Macau.[2]

Business & Financial Metrics[3]

In 2009, MPEL incurred a net loss of $308.5 million on revenues of $1.33 billion. This represents a significant increase in net loss from 2008, when the company lost $2.5 million on $1.42 billion in revenue.

Key Trends & Forces

  • Chinese Tourism: The Chinese government has eased its regulations on travel permits to Macau in recent years. This phenomenon, along with a rapid increase of wealth and disposable income of Chinese citizens , will significantly fuel Macau’s gaming industry. This trend will also be affected by the ease of currency exchange between the Chinese Yuan and the Hong Kong dollar used in Macau.[5]

Competition

MPEL holds one of only 6 authorizations to operate casinos in Macau, a privilege that serves as a significant competitive barrier against other potential market participants. Nevertheless, MPEL’s operations compete with 25 other casinos in the city. In addition, the government of Macau may allow other companies to enter the market in the future, further intensifying competition. [6]

  • Las Vegas Sands (LVS): This company owns and operates The Sands Macao. It is also developing The Venetian Macau.
  • Wynn Resorts (WYNN): Since the opening of Wynn Macau in 2006, this company has actively pursued additional opportunities, and is currently building another large resort casino.
  • MGM MIRAGE (MGM): This company opened the MGM Grand Macau in late 2007. However, like most of American companies operating in Macau, MGM operates primarily in Las Vegas, Nevada.
  • Sociedade de Turismo e Diversoes de Macau: One of the most prominent companies in Macau, This company controls 18 casinos in the city, most prominent of which is the Grand Lisboa.
  • Galaxy Casinos: Similar to MPEL, this company currently operates five casinos and is in the process of developing three more on the Cotai Strip.

References

  1. 2007 MPEL 6-k, Pg. 13
  2. 2006 MPEL 20-f, Pg. 25
  3. MPEL 2009 20-F pg. 3  
  4. "Tiny Macau Overtakes Vegas Strip", BBC News
  5. 2006 MPEL 20-f, Pg. 26
  6. 2006 MPEL 20-f, Pg. 20
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