Melco Crown shares fall 4.8 pct on lacklustre earnings, Taiwan forex probe

Reuters

HONG KONG, Aug 8 (Reuters) - Shares in Macau casino operator

Melco Crown fell 4.8 percent on Friday after the

company posted second-quarter earnings that missed consensus due

to increased labour costs and sluggish growth in the world's

biggest gambling hub.

Melco reported earnings on Thursday night which showed that

net revenue fell 7 percent to $1.2 billion. The company also

announced that a branch office in Taiwan has been indicted for

alleged violations of local banking and foreign exchange laws.

Lawrence Ho, chief executive of Melco said on a conference

call that the company has yet to receive formal documentation

but has been operating in compliance with Taiwan law.

Melco, in line with casino peers Las Vegas Sands and

Wynn Resorts, reported higher than expected staff

costs of $10 milllion at a time when workers are demanding

higher pay and threatening strikes.

Its shares were set to open down 4.8 percent at HK$74.90,

lagging a 0.3 percent drop in the benchmark index.

(Reporting by Farah Master; Editing by Anne Marie Roantree)

View Comments (0)