Melco Crown Philippines posts big losses for 2014

Melco Crown Philippines, a subsidiary of Hong Kong-based Melco Crown Entertainment, posted net losses of P6.30 billion ($141 million), an increase of 156 percent on the prior year’s losses of P2.46 billion.

The company said the depreciation of the Philippine Peso has had a negative impact on the company’s expenses and revenues.

The company said it experienced a loss on foreign exchanges of P101 million for the year, due to the currency’s weakness against the Hong Kong and US dollars.

“Because Philippine Peso fluctuated against H.K. Dollar and U.S. Dollar during the year ended December 31, 2014, foreign exchange loss decreased by P=11.2 million from P=112.2 million for the year ended December 31, 2013 as a result of the foreign exchange revaluation on foreign currencies payables/USD denominated bank accounts during the year.”

“The Group will collect revenues and pay expenses in various currencies and the appreciation and depreciation of other major currencies against the Philippine peso may have a negative impact on the Group’s reported levels of revenues and profits.”

Following the soft opening of the City of Dreams Manila, the company’s total revenue grew to P430.2 million in 2014, representing an increase of P377.3 million, from P53.0 million in 2013.

Casino revenues for the year were P300.0 million, representing  70 percent of total net revenue, including mass table games and gaming machine revenues.

City of Dreams Manila had its soft opening on December 14, 2014 and a grand opening on February 2, 2015. The Group incurred losses for the year ended December 31, 2014 and 2013 since the Group only had half a month resort operations in 2014.