The revenues from City of Dreams (COD) casino Manila are down for the year 2018. MELCO Resorts and Entertainment (Philippines) Corp. that owns 50% of the integrated resort and operates the premium gambling venue has reported that the revenues for the financial year ending December 2018 have fallen by over 5% to $612.9million (approx P31.87 billion).
In 2017 the casino resort had generated $649.3 million ( approx P33.76 billion) in revenues. The company has said the decline in revenue is due to a fall in the VIP revenue in 2018.
Despite slumping gross revenue, the Ebitda (earnings before interest, taxes, depreciation, and amortization ) for the City Of Dreams (COD) was up 14% to $269.2 million. For 2017, the Ebitda was $235 million.
In a statement along with the posted figures the company said that “Property Ebitda is used by management as the primary measure of the Melco Entertainment Group’s operating performance and to compare our performance with that of our competitors.”
The VIP rolling chip volume at the venue was down 3% to $11.09 billion. The previous year it was $11.5 billion. Also, the win rate for 2018 was slightly higher than that of 2017. While the win rate was 3.2 percent in 2018, it was 3.1 percent in 2017.
There was a 16% increase in the volumes from the gaming machines. It was $3.54 billion compared to $3.09 billion in 2017. Here the win rate was also down by 0.3%. The win rate at gaming machines was 5.8 percent in 2017 and 5.5 percent in 2018.
The company also acknowledged that there had been rising competition, and that has taken a toll on this year’s revenues. There are also four other prominent integrated resorts located near the property in Manila.
Lawrence Ho, Chairman, MELCO Resorts and Entertainment (Philippines) Corp said, “In the fourth quarter of 2018, COD Manila delivered its 12 consecutive quarters of luck-adjusted Ebitda growth. However, with the competition in and around Entertainment City, we’re more cautious about 2019 and beyond.”
COD Manila had a steep decline in the revenue in the fourth quarter of 2018 when the revenues dropped 7% year-on-year. The company posted $155.2 million as the fourth quarter revenue in 2018 which was $167.5 million for the same period, the previous year.