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China – Macau bounceback confirmed as Melco surges 51 per cent

By - 11 May 2023

Melco Resorts & Entertainment reported total operating revenues for the first quarter of 2023 of US$716.5m, representing an increase of approximately 51 per cent from US$474.9m for the comparable period in 2022.

The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments primarily due to the relaxation of COVID-19 related restrictions in Macau during the quarter.

Operating income for the first quarter of 2023 was US$0.4m, compared with operating loss of US$135.9 million in the first quarter of 2022.

Lawrence Ho, Chairman and Chief Executive Officer, commented: “We have seen a very encouraging start to the recovery in Macau during the first quarter of 2023, following the relaxation of border restrictions in early January. We continued to see improving momentum into April and Golden Week in May, with mass market table games drop and mass gross gaming revenue during the Golden Week period exceeding the same period in 2019.

“We launched some exciting new initiatives in April. We started Macau’s first ever residency concert series at Studio City and opened Studio City Phase 2, starting with our Epic hotel tower and the indoor water park. These initiatives reinforce our long-standing commitment to bring unique, world class entertainment and hotel offerings to Macau. We have a diverse range of events that are being planned for the future that, we believe, will continue to drive international tourism and position Macau as a leading destination for leisure and entertainment.

“We’ve seen strength in the Philippines with a solid recovery underway. Adjusted Property EBITDA at City of Dreams Manila for the first quarter of 2023 surpassed that of the first quarter of 2019. Performance in Cyprus has also been strong with both gross gaming revenue and Adjusted Property EBITDA exceeding 2019 levels. With this proven demand, we are excited to open City of Dreams Mediterranean in mid-June and showcase our expertise with the first integrated resort of its kind in the region.

“Environmental sustainability remains a key pillar of our strategy. Our latest 2022 Sustainability Report highlights our achievements to date as we work towards reaching our 2030 goals. We have expanded climate related risk assessment to provide further guidance as we implement our carbon-neutral resort commitments across our properties. We are also continuing our work towards achieving BREEAM certification for Studio City Phase 2 and City of Dreams Mediterranean following construction completion.”

For the quarter ended March 31, 2023, total operating revenues at City of Dreams were US$358.3m, compared with US$256.7m in the first quarter of 2022. City of Dreams generated Adjusted EBITDA of US$94.9m in the first quarter of 2023, compared with Adjusted EBITDA of US$44.4m in the first quarter of 2022. Altira Macau were US$23.8m, compared with US$13.9m in the first quarter of 2022. Altira Macau generated negative Adjusted EBITDA of US$2m in the first quarter of 2023, compared with negative Adjusted EBITDA of US$9.4m in the first quarter of 2022.

Studio City generated US$142.2m, compared with US$71.1m in the first quarter of 2022. Studio City generated Adjusted EBITDA of US$20.6m in the first quarter of 2023, compared with negative Adjusted EBITDA of US$17.3m in the first quarter of 2022.

City of Dreams Manila generated US$133.3m, compared with US$86.9m in the first quarter of 2022. City of Dreams Manila generated Adjusted EBITDA of US$60.9m in the first quarter of 2023, compared with Adjusted EBITDA of US$33m in the comparable period of 2022.

The company is licensed to operate a temporary casino, which is the first casino in the Republic of Cyprus, and four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

Total operating revenues at Cyprus Casinos for the quarter ended March 31, 2023 was US$27.8m, compared with US$16.1m in the first quarter of 2022. Cyprus Casinos generated Adjusted EBITDA of US$8.7m in the first quarter of 2023, compared with Adjusted EBITDA of US$0.9m in the first quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market segment.

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