Melco Resorts & Entertainment Limited (MLCO - Free Report) posted robust first-quarter 2017 results, with earnings and revenues beating the Zacks Consensus Estimate.
Earnings and Revenue Discussion
Adjusted earnings per share of 24 cents outpaced the Zacks Consensus Estimate of 8 cents by a momentous 200%. Earnings also increased significantly from the prior-year quarter figure of 7 cents on higher revenues.
Notably, quarterly net revenue of $1.28 billion surpassed the Zacks Consensus Estimate of $1.20 billion by nearly 7% and also increased 15.7% on a year-over-year basis. This improvement in the top line was primarily driven by better group-wide rolling chip and mass market table games revenues.
Adjusted Property EBITDA (earnings before interest, taxes, and amortization) was $353.3 million in the quarter under review, up 42% year over year. The upside was prompted by improved performance in group-wide rolling chip and mass market table games segments.
City of Dreams Macau
Net revenue at City of Dreams was $693.2 million, up 2.2% year over year. Adjusted EBITDA was $213.5 million, reflecting an increase of 3.8% year over year. The upside was owing to greater rolling chip gross gaming revenues and increased non-gaming revenues in the reported quarter.
Rolling chip volumes totaled $12.6 billion, up 28.6% year over year. The rolling chip win rate was 2.7% compared with 3.2% in the year-ago quarter.
Total non-gaming revenue at City of Dreams in the quarter was $77.8 million, up 25.5% year over year.
Altira Macau
Net revenue at Altira Macau was $109.1 million, up 0.6% year over year. Altira Macau generated adjusted EBITDA of $3.7 million in the first quarter, which compared favorably with the prior-year quarter’s figure of a negative $14 million. The improvement came on the back of a lower provision for doubtful debt.
However, Rolling chip volume was $4.1 billion, down 10.9% from the prior-year quarter. The rolling chip win rate was 3.1% compared with 2.8% in the year-ago quarter.
Mocha Clubs
Net revenue from Mocha Clubs was $31.1 million, down 2.2% year over year. But adjusted EBITDA of $7.1 million was up 9.2% year over year.
Studio City
Studio City started operations on Oct 27, 2015. In the reported quarter, net revenue at Studio City was $277.9 million, up 55.5% year over year. Also, adjusted EBITDA of $67.8 million was up significantly on a year-over-year basis. The upside was on the back of commencement of rolling chip operations in Nov 2016 and enhanced performance in mass market table games segment.
Rolling chip volume totaled $3.6 billion, while the rolling chip win rate was 2.4% in the quarter.
Mass-market table games drop was $656.3 million, up nearly 20% year over year. Meanwhile, the mass-market table games hold percentage was 26.4% in the quarter compared with 22.8% in the year-ago quarter. However, total non-gaming revenue at Studio City in the quarter was $50.8 million, down 12.7% year over year.
City of Dreams Manila
In the first quarter, net revenue at City of Dreams Manila was $157.4 million, up 65% year over year. Adjusted EBITDA was $61.1 million, up over 100% from the year-ago quarter, thanks to increased casino revenues.
Rolling chip volume totaled $2.4 billion, up 60% from the year-ago quarter figure. The rolling chip win rate was 3.4% compared with the year-ago level of 2.8%.
Melco Resorts presently has 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 first-quarter adjusted earnings per share of 38 cents, beating the Zacks Consensus Estimate of 26 cents by 46.2%. Moreover, earnings were significantly above the year-ago quarter figure on account of higher revenues.
Las Vegas Sands Corp.’s (LVS - Free Report) first-quarter 2017 adjusted earnings of 66 cents per share surpassed the Zacks Consensus Estimate of 62 cents by 6.45% and increased 40.4% year over year owing to higher revenues.
In first-quarter 2017, Wynn Resorts Ltd. (WYNN - Free Report) posted adjusted earnings of $1.24 per share that outpaced the Zacks Consensus Estimate of 74 cents by 67.6%. Further, earnings increased 15.9% from the year-ago figure of $1.07 mainly due to higher revenues.
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Melco Resorts & Entertainment Limited (MLCO - Free Report) posted robust first-quarter 2017 results, with earnings and revenues beating the Zacks Consensus Estimate.
Earnings and Revenue Discussion
Adjusted earnings per share of 24 cents outpaced the Zacks Consensus Estimate of 8 cents by a momentous 200%. Earnings also increased significantly from the prior-year quarter figure of 7 cents on higher revenues.
Notably, quarterly net revenue of $1.28 billion surpassed the Zacks Consensus Estimate of $1.20 billion by nearly 7% and also increased 15.7% on a year-over-year basis. This improvement in the top line was primarily driven by better group-wide rolling chip and mass market table games revenues.
Adjusted Property EBITDA (earnings before interest, taxes, and amortization) was $353.3 million in the quarter under review, up 42% year over year. The upside was prompted by improved performance in group-wide rolling chip and mass market table games segments.
City of Dreams Macau
Net revenue at City of Dreams was $693.2 million, up 2.2% year over year. Adjusted EBITDA was $213.5 million, reflecting an increase of 3.8% year over year. The upside was owing to greater rolling chip gross gaming revenues and increased non-gaming revenues in the reported quarter.
Rolling chip volumes totaled $12.6 billion, up 28.6% year over year. The rolling chip win rate was 2.7% compared with 3.2% in the year-ago quarter.
Total non-gaming revenue at City of Dreams in the quarter was $77.8 million, up 25.5% year over year.
Altira Macau
Net revenue at Altira Macau was $109.1 million, up 0.6% year over year. Altira Macau generated adjusted EBITDA of $3.7 million in the first quarter, which compared favorably with the prior-year quarter’s figure of a negative $14 million. The improvement came on the back of a lower provision for doubtful debt.
However, Rolling chip volume was $4.1 billion, down 10.9% from the prior-year quarter. The rolling chip win rate was 3.1% compared with 2.8% in the year-ago quarter.
Mocha Clubs
Net revenue from Mocha Clubs was $31.1 million, down 2.2% year over year. But adjusted EBITDA of $7.1 million was up 9.2% year over year.
Studio City
Studio City started operations on Oct 27, 2015. In the reported quarter, net revenue at Studio City was $277.9 million, up 55.5% year over year. Also, adjusted EBITDA of $67.8 million was up significantly on a year-over-year basis. The upside was on the back of commencement of rolling chip operations in Nov 2016 and enhanced performance in mass market table games segment.
Rolling chip volume totaled $3.6 billion, while the rolling chip win rate was 2.4% in the quarter.
Mass-market table games drop was $656.3 million, up nearly 20% year over year. Meanwhile, the mass-market table games hold percentage was 26.4% in the quarter compared with 22.8% in the year-ago quarter. However, total non-gaming revenue at Studio City in the quarter was $50.8 million, down 12.7% year over year.
City of Dreams Manila
In the first quarter, net revenue at City of Dreams Manila was $157.4 million, up 65% year over year. Adjusted EBITDA was $61.1 million, up over 100% from the year-ago quarter, thanks to increased casino revenues.
Rolling chip volume totaled $2.4 billion, up 60% from the year-ago quarter figure. The rolling chip win rate was 3.4% compared with the year-ago level of 2.8%.
Melco Resorts presently has 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 first-quarter adjusted earnings per share of 38 cents, beating the Zacks Consensus Estimate of 26 cents by 46.2%. Moreover, earnings were significantly above the year-ago quarter figure on account of higher revenues.
Las Vegas Sands Corp.’s (LVS - Free Report) first-quarter 2017 adjusted earnings of 66 cents per share surpassed the Zacks Consensus Estimate of 62 cents by 6.45% and increased 40.4% year over year owing to higher revenues.
In first-quarter 2017, Wynn Resorts Ltd. (WYNN - Free Report) posted adjusted earnings of $1.24 per share that outpaced the Zacks Consensus Estimate of 74 cents by 67.6%. Further, earnings increased 15.9% from the year-ago figure of $1.07 mainly due to higher revenues.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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