Deutsche Bank has given James Packer’s jointly owned Melco PBL a big vote of confidence, upgrading its first-quarter earnings estimates by 43 per cent. “After our first visit to Macau, we remain bullish on the phenomenal growth in Crown’s VIP business,” analysts from the investment bank said.

Deutsche Bank estimates that Melco’s Crown Macau casino achieved a rolling turnover of almost $HK50 billion ($6.9 billion) last month, representing about 23 per cent of Macau’s VIP play. Deutsche raised its first-quarter earnings before interest depreciation and amortisation (EBITDA) by 43 per cent to $70million.

It expects Crown to crank up VIP rolling turnover to $HK70 million by mid-year.

Melco PBL is a joint-venture company between Mr Packer and Hong Kong businessman Lawrence Ho.

Crown was Melco’s first casino development in Macau.

The next project is the $US1.85 billion ($1.99 billion) City of Dreams casino.

According to Deutsche Bank, City of Dreams looked on track to open in the first quarter of 2009 and the main podium structure work was 95 per cent complete.

The analysts said they saw the project, as one of the best locations on the Cotai Strip, being near the airport, ferry and the Venetian casino, the biggest casino in Macau.

However, the analysts trimmed their EBITDA margin expectations from 27 per cent to 25 per cent to factor in the rising labour costs.

On Tuesday, Melco’s shares on the NASDAQ closed 6 per cent or 72c stronger at $US12.65.

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