MANILA, Philippines - Macau-based casino giant Melco Crown Entertainment Ltd. continued to incur losses for its Philippine operations ahead of the opening of its $1.3-billion integrated resort complex in Manila.
In a regulatory filing at the Hong Kong Stock Exchange, Melco Crown said its operating losses in the Philippines hit $8.29 million in the fourth quarter last year, up 13 percent from $7.32 million the previous period.
“On a fully consolidated basis, we incurred approximately $8.3 million of operating expenses in the fourth quarter of 2013 at City of Dreams Manila,†Melco Crown said.
Higher expenses resulted from “pre-opening costs as well as share-based compensation cost,†the gaming firm said.
Melco Crown said it also incurred $10.1 million in capital lease charges relating to building lease payments for City of Dreams Manila.
Its local unit, Melco Crown (Philippines) Resorts Corp., committed to pay $35 million as rent to Belle Corp., the leisure arm of the SM Group and the builder of the casino complex.
Melco Crown said it posted $37.23 million in operating losses from City of Dreams Manila for the entire 2013, more than five times the $7.32-million loss in 2012.
When it opens in the third quarter this year, City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. Previously, the casino planned to offer only 242 gaming tables and 1,450 electronic gaming machines.
It will be the second casino complex to open at the Philippine Amusement and Gaming Corp.’s 120-hectare Entertainment City, which is being groomed as the country’s version of the Las Vegas strip. In March 2013, port mogul Enrique Razon opened the $1.2-billion Solaire Resort & Casino.
The integrated casino project is Melco Crown’s first gaming foray outside Macau, where it operates the City of Dreams and Altira Macau casinos. City of Dreams Macau is famous for its world-class gaming and entertainment offerings including The House of Dancing Water Show and party place Club Cubic.