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Packer's Dreams yet to come true

8 July 2009

MACAO -- As reported by The Sydney Morning Herald: "The Credit Suisse gambling analyst in Hong Kong has cut his earnings forecast for James Packer's Macau casino joint venture by 81 per cent after its latest casino opening disappointed the market in its first month of trading.

"Gabriel Chan, who has covered the company since February 2007, said in a note to clients that he had cut his earnings forecasts for 2011 because he now believed 'mass market' gamblers would be spending 15 per cent less at the new City of Dreams casino.

"He said he expected earnings per share to fall to just US6c a share by December 2011 because the new casino was failing to entice enough small-time gamblers to part with their cash.

"...Mr Chan suggested Melco Crown management might have to offer gifts, freebies or rebates to gamblers to entice them to City of Dreams, which could trigger a price war with rivals over mass market gamblers..."

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