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China – Melco hopes for ‘smooth road’ ahead with no new COVID cases in 144 days

By - 21 August 2020

Melco Resorts’ revenues for the second quarter of 2020 were US$0.18bn, representing a decrease of approximately 88 per cent from US$1.46bn for the comparable period in 2019. The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the COVID-19 pandemic, which resulted in a significant decline in inbound tourism in the second quarter of 2020.

Operating loss for the second quarter of 2020 was US$370.8 million, compared with operating income of US$208.0 million in the second quarter of 2019.

David Sisk, COO of Melco, said: “With no local cases of COVID-19 in over 144 days in Macau. I think, the China bubble that we’re in, is a good place. But China will continue being cautious, much like Macau is going to continue to be cautious. Over the short term, we’ve been on a pretty bumpy road. But, I think as we head out into the mid-term and the long-term, we think there’s a lot of pent up demand out there for our customers. And I think for the first time, I think we’re actually starting to see some smooth road out there on the horizon

Lawrence Ho, Chairman and Chief Executive Officer, commented: “COVID-19 and the subsequent travel restrictions and quarantine requirements have significantly impacted our second quarter operating and financial performance. To help mitigate the impact from COVID-19, we have been quick to formulate strategies to preserve liquidity and improve the Company’s balance sheet. In April, we bolstered our balance sheet by entering into a new senior facilities agreement and by selling the shares we held in Crown Resorts Limited.

“Turning to Japan, I want to highlight our unwavering commitment to bring to the country the best IR the world has ever seen. We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing a world-leading IR with a unique, Japanese touch.

“Lastly, we are excited to see some early signs of returning to normal operations in our integrated resorts. In mid-June, operations at Cyprus Casinos have partially resumed. In addition, commencing from July 15, 2020, certain travelers entering Guangdong from Macau were no longer subject to mandatory quarantine. The issuance of IVS visas was reinstated for Zhuhai residents on August 12, 2020, while the nationwide resumption of IVS visa issuance is expected to commence on September 23, 2020. We are hopeful these announcements signal the eventual resumption of the pre-COVID travel between Macau and Mainland China. While we are encouraged by the recent positive developments, ensuring the safety and well-being of our colleagues, customers and communities in which we operate remains our highest priority.”

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