Melco Crown's earnings climbed 62% to USD330.1m

Here's what boosted this growth.

According to Maybank Kim Eng, Melco Crown reported 2Q13 net revenue which grew 38% YoY to USD1,295m, while at the same time registering record EBITDA growth of 62% YoY to USD330.1m.

Consequently, Melco Crown enjoyed higher EBITDA margins from 21.7% to 25.5% for 2Q13. The group’s strong performance was attributable to higher growth from strong mass market segment execution at City of Dreams as well as higher rolling chip volume accentuated by a higher win rate.

Here's more:

Melco Crown reported USD0.33 earnings per share for 2Q13, beating consensus of USD0.28 by USD0.05.

Implication: At City of Dreams, rolling chip volumes in 2Q13 were up 30% YoY to USD24.8b against a win rate of 3.1% which was 0.1 ppts higher than the previous quarter.

Furthermore, mass market drop also increased 35% to USD1.1b against a higher win rate of 32.8% which was 3.8ppts higher YoY. The overall result was brought about by higher table yields, demonstrated by the company strategy of targeting the higher stakes premium customers.

Altira Macau’s VIP rolling chip volumes were up 16% to USD11.8b, with a win, rate for the segment that were also 0.3ppts higher YoY at 3.0% for 2Q13.

Mass market segment’s drop grew 24% YoY to USD172.1m, though the win percentage was 2.2ppts lower YoY at 15.5%. Our channel checks suggest Melco Crown’s market share was up 1.4ppts QoQ to 14.9%, making it the winner in terms of best market share gains for 2Q13.