QUOTE AND NEWS
TheStreet.com  Dec 17  Comment 
NEW YORK (TheStreet) -- Shares of Melco Crown Entertainment Ltd. are down by 3.03% to $21.54 in late morning trading on Wednesday, as Macau casino stocks react negatively to the latest government crackdown on illegal activity coming out of the...
Motley Fool  Dec 10  Comment 
Melco Crown's dividend is best looked at as a long-term play.
Motley Fool  Dec 4  Comment 
Melco Crown is the latest gaming stock to pay a dividend but there are a few things you should know before jumping in.
Benzinga  Dec 1  Comment 
Entertainment Gaming Asia Inc. (NASDAQ: EGT) ("Entertainment Gaming Asia" or "the Company"), a gaming company focused on emerging gaming markets in Pan-Asia, reported today the completion of its previously announced rights offering, which expired...
Motley Fool  Nov 24  Comment 
Melco Crown's dividend is still very young, but it's built on a solid foundation that should endure for years to come.
Benzinga  Nov 21  Comment 
On CNBC's Fast Money Halftime Report Final Trade, Stephanie Link recommended Carnival Corporation (NYSE: CCL) as a buy. Jon Najarian said that he bought Melco Crown Entertainment Ltd (ADR) (NASDAQ: MPEL) on Thursday. Pete Najarian believes...
Market Intelligence Center  Nov 13  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Melco Crown Entertainment Ltd (MPEL). Look at the Jan. '15 $24.66 covered call for a net debit in the $23.80 area. This trade has...




 
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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