Melco Crown incurs $8.3-M loss in Q1

MANILA, Philippines - The local unit of Macau-based casino giant Melco Crown Entertainment Ltd. incurred losses in the first quarter, ahead of the commercial operations of its $1.3-billion integrated resort complex in Manila.

“The corporation recorded a net loss of approximately $8.3 million as a result of operating losses and foreign exchange losses,” Melco Crown (Philippines) Resorts Corp. said in a disclosure.

Melco Philippines, formed late last year, said it also spent $3.5 million for capital lease charges related to building lease payments.

Melco Philippines is committed to pay $35 million as rent to Belle Corp., the leisure arm of the SM conglomerate that is building the Belle Grande Manila casino complex.

Last month, Melco Philippines raised $377 million after selling 1.09 billion shares to international investors.

Melco Crown is the operator of the soon-to-open Belle Grande Manila at the 120-hectare Entertainment City of State-run Philippine Amusement and Gaming Corp. (Pagcor), envisioned as the Philippines’ answer to the Las Vegas, Singapore and Macau gaming hubs.

“The resort in Manila is expected to have approximately 967 rooms and suites, 242 gaming tables and approximately 1,450 gaming machines in addition to a range of entertainment and other non-gaming amenities to attract a wide variety of local and inbound customers,” Melco Crown said.