Melco Crown chief admits Macau casino failings

James Packer’s casino partner, Lawrence Ho, is worried about growing competition in the mass market in Macau.

Lawrence Ho and James Packer at last year’s opening of Studio City in Macau. Pic: Bloomberg

James Packer’s casino business partner, Lawrence Ho, has warned increasing competition in the mass market in Macau is “a bit worrying” in the short term.

Mr Lawrence, head of Melco Crown Entertainment, in which Mr Packer’s Crown Resorts (CWN) has a stake, told financial magazine Barron’s Asia that having additional supply in a declining market was worrying.

Melco Crown opened its fourth Macau casino in October, the $US3.2 billion Studio City, with a gala event starring Mr Packer’s fiance Mariah Carey and Hollywood royalty Martin Scorsese, Leonardo DiCaprio and Robert De Niro.

Mr Ho said that while it was still early days, and noted it could take up to 18 months to fully ramp up a property of Studio City’s scale, marketing for the new resort could have been better.

“We had a lot of brand awareness and buzz, but somehow our marketing team hasn’t really translated that,” he told Barron’s Asia.

“We have these great non-gaming attractions but we also have a casino and some great restaurants. We just need to do a better job at marketing ourselves and bundling offers — it’s not rocket science.”

The new casino resort was pitched at the mass market but Melco Crown’s chief operating officer Ted Chan Ying Tat said this week that the company was now considering adding junket facilities at Studio City.

Mr Packer last month reduced his investment in Melco Crown to realign his focus on his Australian assets.

Crown Resorts, in which Mr Packer’s Consolidated Press Holdings has a 53 per cent interest, cut its stake in Melco Crown from 34 per cent to 27.4 per cent.

That selldown was followed by last week’s announcement by Crown Resorts that it planned to demerge its Australian assets from its international operations. Investor reaction to the slowdown in Macau was said to be one of the factors driving the demerger plan.

Mr Ho said in the interview that Mr Packer intended to remain a major shareholder in the joint venture but it was reported he would not comment on whether the share sale was a one-off.