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Melco Resorts (MLCO) Misses on Q2 Earnings, Stock Falls
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Melco Resorts & Entertainment Limited (MLCO - Free Report) posted mixed second-quarter 2017 results, wherein though earnings lagged the Zacks Consensus Estimate, revenues beat the same. Consequently, shares were down more than 2% in yesterday’s trading session.
Earnings and Revenue Discussion
Adjusted earnings per share of 16 cents missed the Zacks Consensus Estimate of 20 cents by 20%. However, earnings increased significantly from the prior-year quarter figure of 5 cents on higher revenues.
Notably, quarterly net revenue of $1.30 billion surpassed the Zacks Consensus Estimate of $1.21 billion by over 7% and also increased 21.3% on a year-over-year basis. This improvement in the top line was primarily driven by better group-wide rolling chip revenues.
Adjusted Property EBITDA (earnings before interest, taxes, and amortization) was $329.5 million in the quarter under review, up 34% year over year. The upside was prompted by improved performance in the group-wide rolling chip segment.
City of Dreams Macau
Net revenue at City of Dreams was $644.6 million, up 2.3% year over year. Adjusted EBITDA was however $175.3 million, reflecting a decrease of 1.4% year over year.
Rolling chip volumes totaled $12.2 billion, up 23.2% year over year. The rolling chip win rate was 2.9%, down 10 basis points (bps) year over year and within the projected range of 2.7% to 3%.
Table drop in the mass market table games segment amounted to $1.07 billion, up 4.4% year over year. However, mass hold percentage was 32.4%, down 330 bps.
Total non-gaming revenue at City of Dreams in the quarter was $74.6 million, up 18.8% year over year.
Altira Macau
Net revenue at Altira Macau was $107.6 million, up 9% year over year. Altira Macau generated adjusted EBITDA of $5.1 million in the reported quarter, up significantly from the prior-year quarter’s figure of $1.7 million. The improvement came on the back of higher rolling chip revenues, offset to an extent by lower mass market table games revenues.
Conversely, Rolling chip volume was $4 billion, down 4.8% from the prior-year quarter. The rolling chip win rate was 3.3% up 60 bps and higher than the projected range of 2.7% to 3%.
Table drop in the mass market table games segment was $91.9 million, down 26% year over year. Moreover, mass market table games hold percentage was 15.2%, down 330 bps.
Meanwhile, total non-gaming revenue at Altira Macau was $6.1 million, down 18.8% year over year.
Mocha Clubs
Net revenue from Mocha Clubs was $29.3 million, up 4.6% year over year. Moreover, adjusted EBITDA of $5.6 million was up 16.7% year over year.
Studio City
Studio City started operations on Oct 27, 2015. In the reported quarter, net revenue at this property was $332.1 million, up a whopping 80.7% year over year. Also, adjusted EBITDA of $80.7 million was up significantly on a year-over-year basis. The upside was backed by commencement of rolling chip operations in Nov 2016 and enhanced performance in mass market table games segment.
Rolling chip volume totaled $4.7 billion, while the rolling chip win rate was 3.3% in the quarter (above the guided range of 2.7—3%).
Mass market table games drop was $661.4 million, up 11.7% year over year. Meanwhile, the mass market table games hold percentage was 26.8%, up a significant 400 bps year over year.
However, total non-gaming revenue at Studio City in the quarter was $48.6 million, down 4.9% year over year.
City of Dreams Manila
In the second quarter, net revenue at City of Dreams Manila was $176.2 million, up 46.6% year over year. Adjusted EBITDA was $62.8 million, up 72.1% from the year-ago quarter, thanks to increased casino revenues.
Rolling chip volume totaled $3.2 billion, up 88.2% from the year-ago quarter figure. The rolling chip win rate was 3.5% up 10 bps on a year-over-year basis and above the projected range of 2.7% to 3%.
Mass market table games drop came in at $169.8 million, up 26.4% year over year. However, the mass market table games hold percentage was 28.5% in the quarter, down 140 bps year over year.
Total non-gaming revenue at City of Dreams Manila was $28.1 million, up 7.3% year over year.
MGM Resorts International (MGM - Free Report) reported second-quarter adjusted earnings per share of 31 cents, beating the Zacks Consensus Estimate of 28 cents by 10.7%. Also, earnings came above the year-ago quarter figure of 26 cents by 19.2% on account of higher revenues.
Las Vegas Sands Corp.’s (LVS - Free Report) second-quarter 2017 adjusted earnings of 73 cents per share surpassed the Zacks Consensus Estimate of 61 cents by 19.7% and soared 37.7% year over year owing to higher revenues.
In second-quarter 2017, Wynn Resorts Ltd. (WYNN - Free Report) posted adjusted earnings of $1.18 per share that outpaced the Zacks Consensus Estimate of $1.09 by 8.3%. Further, earnings increased 10.3% from the year-ago figure of $1.07, mainly backed by higher revenues.
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Melco Resorts (MLCO) Misses on Q2 Earnings, Stock Falls
Melco Resorts & Entertainment Limited (MLCO - Free Report) posted mixed second-quarter 2017 results, wherein though earnings lagged the Zacks Consensus Estimate, revenues beat the same. Consequently, shares were down more than 2% in yesterday’s trading session.
Earnings and Revenue Discussion
Adjusted earnings per share of 16 cents missed the Zacks Consensus Estimate of 20 cents by 20%. However, earnings increased significantly from the prior-year quarter figure of 5 cents on higher revenues.
Notably, quarterly net revenue of $1.30 billion surpassed the Zacks Consensus Estimate of $1.21 billion by over 7% and also increased 21.3% on a year-over-year basis. This improvement in the top line was primarily driven by better group-wide rolling chip revenues.
Adjusted Property EBITDA (earnings before interest, taxes, and amortization) was $329.5 million in the quarter under review, up 34% year over year. The upside was prompted by improved performance in the group-wide rolling chip segment.
City of Dreams Macau
Net revenue at City of Dreams was $644.6 million, up 2.3% year over year. Adjusted EBITDA was however $175.3 million, reflecting a decrease of 1.4% year over year.
Rolling chip volumes totaled $12.2 billion, up 23.2% year over year. The rolling chip win rate was 2.9%, down 10 basis points (bps) year over year and within the projected range of 2.7% to 3%.
Table drop in the mass market table games segment amounted to $1.07 billion, up 4.4% year over year. However, mass hold percentage was 32.4%, down 330 bps.
Total non-gaming revenue at City of Dreams in the quarter was $74.6 million, up 18.8% year over year.
Altira Macau
Net revenue at Altira Macau was $107.6 million, up 9% year over year. Altira Macau generated adjusted EBITDA of $5.1 million in the reported quarter, up significantly from the prior-year quarter’s figure of $1.7 million. The improvement came on the back of higher rolling chip revenues, offset to an extent by lower mass market table games revenues.
Conversely, Rolling chip volume was $4 billion, down 4.8% from the prior-year quarter. The rolling chip win rate was 3.3% up 60 bps and higher than the projected range of 2.7% to 3%.
Table drop in the mass market table games segment was $91.9 million, down 26% year over year. Moreover, mass market table games hold percentage was 15.2%, down 330 bps.
Meanwhile, total non-gaming revenue at Altira Macau was $6.1 million, down 18.8% year over year.
Mocha Clubs
Net revenue from Mocha Clubs was $29.3 million, up 4.6% year over year. Moreover, adjusted EBITDA of $5.6 million was up 16.7% year over year.
Studio City
Studio City started operations on Oct 27, 2015. In the reported quarter, net revenue at this property was $332.1 million, up a whopping 80.7% year over year. Also, adjusted EBITDA of $80.7 million was up significantly on a year-over-year basis. The upside was backed by commencement of rolling chip operations in Nov 2016 and enhanced performance in mass market table games segment.
Rolling chip volume totaled $4.7 billion, while the rolling chip win rate was 3.3% in the quarter (above the guided range of 2.7—3%).
Mass market table games drop was $661.4 million, up 11.7% year over year. Meanwhile, the mass market table games hold percentage was 26.8%, up a significant 400 bps year over year.
However, total non-gaming revenue at Studio City in the quarter was $48.6 million, down 4.9% year over year.
City of Dreams Manila
In the second quarter, net revenue at City of Dreams Manila was $176.2 million, up 46.6% year over year. Adjusted EBITDA was $62.8 million, up 72.1% from the year-ago quarter, thanks to increased casino revenues.
Rolling chip volume totaled $3.2 billion, up 88.2% from the year-ago quarter figure. The rolling chip win rate was 3.5% up 10 bps on a year-over-year basis and above the projected range of 2.7% to 3%.
Mass market table games drop came in at $169.8 million, up 26.4% year over year. However, the mass market table games hold percentage was 28.5% in the quarter, down 140 bps year over year.
Total non-gaming revenue at City of Dreams Manila was $28.1 million, up 7.3% year over year.
Melco Resorts currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
MGM Resorts International (MGM - Free Report) reported second-quarter adjusted earnings per share of 31 cents, beating the Zacks Consensus Estimate of 28 cents by 10.7%. Also, earnings came above the year-ago quarter figure of 26 cents by 19.2% on account of higher revenues.
Las Vegas Sands Corp.’s (LVS - Free Report) second-quarter 2017 adjusted earnings of 73 cents per share surpassed the Zacks Consensus Estimate of 61 cents by 19.7% and soared 37.7% year over year owing to higher revenues.
In second-quarter 2017, Wynn Resorts Ltd. (WYNN - Free Report) posted adjusted earnings of $1.18 per share that outpaced the Zacks Consensus Estimate of $1.09 by 8.3%. Further, earnings increased 10.3% from the year-ago figure of $1.07, mainly backed by higher revenues.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>