James Packer’s Hong Kong-based casino JV has unveiled a major restructure of its management team. In a bid to better capitalise on booming gaming revenues in Macau, Melco Crown Entertainment, a JV between Packer’s Crown and Lawrence Ho’s Melco International, has appointed 2 chief operating officers after the resignation of Greg Hawkins, who has been president of the ventures flagship City of Dreams project for the past 5 years. The new management will see 2 execs given responsibility for group functions rather than for individual properties as has been the case. Ted Chan, president of Melco Crown’s first casino in Macau, Altira, has been promoted to Co-COO, Gaming, overseeing gaming activities across the group.
Former Sands China executive Nick Naples has joined Melco Crown as Co-COO, operations and is responsible for all non-gaming operating activities across the entire company. Both will report to Mr Ho (note its Ho, not No). Melco Crown chief bean counter ex News Corporation exec Simon Dewhurst resigned last Friday from his role as part of the restructuring. Melco has promoted Geoffrey Davis, currently senior VP of corporate finance, to deputy CFO and treasurer on a permanent basis and is looking for a new CFO. City of Dreams, which is on the Cotai Strip of reclaimed land in Macau, has delivered a solid performance since opening its doors in June last year. Its revenues were boosted in July by a 70% gain in Macau gaming revenue, helped by the soccer World Cup.
Macau’s July gross gambling revenue was 16.3 billion Macanese patacas ($2.2bn) compared with 9.6 billion patacas a year earlier and 13.6 billion patacas in June, according to data from Macau’s Gaming Inspection and Co-ordination Bureau.
While analysts said the pace of growth was expected to slow in coming months, it is expected to remain solid. Melco Crown enjoys a market share of 15% in Macau, behind Stanley Ho’s SJM Holdings with 32% and Las Vegas Sands with 19%. On a US GAAP basis, Melco Crown recently reported a net loss for the second quarter of 2010 of $US30.1 million ($33.7m) compared with a net loss of $US144m a year earlier. Crown’s investor relations and business development head Anthony Klok has announced his resignation from the Australian-based group. Crown will report its annual results next week. The management changes are being received well by the financial, tourism and gaming sector.
Scam (We Think): Macau’s Melco Crown Scam Targets Belgium…
At least a Belgium investor has been offered to buy shares in Melco Crown Entertainment at a 10% discount by callers claiming to be part of Mitsubishi Group (which includes Japan’s biggest lender), an investigation by Macau Business shows. This follows a group of three Norwegian businessmen who had been made the same offer. Last week, Mitsubishi Group already announced it was investigating the possible scam. Melco Crown will consider taking action after studying the case, spokeswoman Maggie Ma said, quoted by Bloomberg. According to the Belgium investor, who wishes to remain unnamed, the calls were followed up by e-mails and documents linked to an alleged Mitsubishi Group. The documents stressed that the minimum expected return on the investment would be above 150%.
He was proposed to buy a total of 1,500 shares in an investment totalling US$5,302 (MOP42,000). In the documents, Melco Crown is identified as a “star company”, “the term we use to describe the gems that our analytical endeavours tend to discover from time-to-time”. Included in the documentation, there was an international telegraphic transfer form. The beneficiary stated was a company with no Internet presence and the money was to be transferred to a bank account in Taiwan! As sore… no thanks. Confusous say smells like Bull … Shhh.
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