Melco Posts Q2 Miss; Taiwan Office, Workers Indicted
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) missed second-quarter Street views Thursday and disclosed that Taipei prosecutors have indicted its Taiwan office and certain employees there for allegedly violating banking and foreign exchange laws.
In pre-market trading, Melco shares fell nearly five percent to $28.58.
Hong Kong-based Melco said it believes its Taiwan operations comply with local law and the indictment won't immediately affect operations. The company will vigorously defend the indictment and make further disclosures as the case develops, it said.
Lower spending by high rollers in the second quarter resulted in a seven percent revenue decline, but revenue grew 38 percent at the company's City of Dreams casino in Manila.
The company said it continues to invest in improved amenities at City of Dreams, and Chief Executive Lawrence Ho added that Macau, where much of Melco's casino operations are located, "remains the most exciting gaming destination in the world."
Regulators said recently that total Macau gaming revenue fell 3.6 percent in July.
Melco's second-quarter net income fell 20 percent to $143.6 million, or $0.26 per share, from the year-earlier $181.0 million, or $0.33 per share. Revenue declined seven percent to $1.2 billion, from $1.3 billion in 2013.
Wall Street expected $0.36 per share on $1.3 billion in revenue.
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