Benzinga  Apr 15  Comment 
In a report published Wednesday, analysts at BNP Paribas downgraded Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL) from Hold to Reduce. The target price has also been revised down from $21.66 to $17.09. Following the smoking ban, Melco...
TheStreet.com  Apr 9  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment  closed up 6.36% to $25.08 on Thursday as casino stocks rallied. Macau gaming companies have begun to explore options outside of the Chinese gambling territory. Macau Resources Group...
TheStreet.com  Apr 2  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment  rose 5.53% to $23.17 in afternoon trading Thursday despite Macau gaming revenue declining for the tenth consecutive month. Gross gaming revenues (GGR) for March fell 39.4%...
Benzinga  Mar 30  Comment 
Analysts at Bank of America downgraded Melco Crown Entertainment Limited (NASDAQ: MPEL) from Neutral to Underperform. The price target for Melco Crown Entertainment is set to $21.40. Melco Crown shares closed at $21.70 on Friday. Analysts at...
Benzinga  Mar 23  Comment 
Analysts at Bernstein initiated coverage on Melco Crown Entertainment Limited (NASDAQ: MPEL) with a Outperform rating. The target price for Melco Crown Entertainment is set to $32. Melco Crown Entertainment shares have dropped 41.09% over the...
TheStreet.com  Mar 19  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment were gaining 5.2% to $23.02 Thursday after Brean Capital initiated coverage of the casino operator with a "buy" rating. The analyst firm set a price target of $31 for Melco Crown....
TheStreet.com  Mar 16  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment Ltd. are lower by 1.89% to $20.99 in mid-afternoon trading on Monday, as stocks belonging to casinos operating in China's Macau gambling district take a hit following data from the...


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]


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.


  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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