Operator News

China – Huge increases in Macau help drive 220 per cent increase for Melco

By Phil - 6 September 2023

Melco Resorts & Entertainment generated operating revenues for the second quarter of 2023 of US$947.9m, representing an increase of approximately 220 per cent from US$296.1m for the comparable period in 2022.

The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations primarily due to the relaxation of COVID-19 related restrictions in Macau in January 2023, the openings of Studio City Phase 2’s Epic Tower and indoor waterpark in April 2023, as well as the launch of residency concerts at Studio City in the same month.

Operating income for the second quarter of 2023 was US$64.3m, compared with operating loss of US$209.2m in the second quarter of 2022.

Melco generated Adjusted Property EBITDA of US$267.3m in the second quarter of 2023, compared with negative Adjusted Property EBITDA of US$13.m in the second quarter of 2022.

Net loss attributable to Melco Resorts & Entertainment Limited for the second quarter of 2023 was US$23.4m, or US$0.05 per ADS, compared with US$251.5m, or US$0.53 per ADS, in the second quarter of 2022. The net loss attributable to noncontrolling interests was US$27.7m and US$43.2m during the second quarters of 2023 and 2022, respectively, all of which were related to Studio City, City of Dreams Manila, and City of Dreams Mediterranean and Other.

Lawrence Ho, our Chairman and Chief Executive Officer, commented: “The strength of our Macau recovery is evident in the 43 per cent increase in gross gaming revenue in the second quarter of 2023 compared to the first quarter of 2023. We’ve seen mass drop increase month-to-month and turnover in our premium direct VIP segment continued to exceed 2019 during the second quarter.

“Labor supply issues in Macau have been largely resolved. We have been able to provide our customers with Melco’s full suite of services and amenities. We expect to add another 560 hotel rooms to our portfolio with the opening of W Macau at Studio City in September and are well positioned to support the continuing increase of customers in Macau.

“The mass segment is also leading the recovery in the Philippines, continuing to outperform 2019 in the second quarter of 2023. And in Cyprus, we opened City of Dreams Mediterranean to the public in July after a successful soft opening in June, and we’re excited for its prospects as we ramp up our operations.

“Environmental sustainability is built into the core of our business and embedded in our operations. Examples of this include the sophisticated water filtration system installed in our waterpark at Studio City to reduce water consumption and improve water reuse and meticulously-designed sustainable packaging and amenities that are free of single-use plastics. We are also continuing our work towards achieving BREEAM certifications for Studio City Phase 2 and City of Dreams Mediterranean following the construction completion of these properties.”

For the quarter ended June 30, 2023, total operating revenues at City of Dreams were US$506.2m, compared with US$97.3m in the second quarter of 2022.

Operating revenues at Altira Macau were US$29.3m, compared with US$7.2m in the second quarter of 2022.

Studio City generated US$236m, compared with US$35.9 million in the second quarter of 2022. Studio City generated Adjusted EBITDA of US$41.1 million in the second quarter of 2023, compared with negative Adjusted EBITDA of US$31.1 million in the second quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market table games segment and non-gaming operations.

City of Dreams Manila generated US$116.4m, compared with US$111.7m in the second quarter of 2022.

City of Dreams Mediterranean officially opened to the public on July 10, 2023, after a soft opening in June. The Company continues to operate three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean.

Total operating revenues at the Cyprus Casinos for the quarter ended June 30, 2023 were US$30.9m, compared with US$21.7 m in the second quarter of 2022.