Operator News
China – Melco reports three per cent increase in fourth quarter revenues
By Phil - 21 February 2020
Melco Resorts & Entertainment reported operating revenues for the fourth quarter of 2019 of US$1.45bn, representing an increase of approximately three per cent from US$1.41bn for the comparable period in 2018. The increase in total operating revenues was primarily attributable to better performance in the mass market table games segment.
Operating income for the fourth quarter of 2019 was US$173.4m compared with operating income of US$203.3m in the fourth quarter of 2018, representing a decrease of 15 per cent. Whilst revenue at Studio City were up to US$358.3m in the fourth quarter compared to US$340.7m last year, revenues elsewhere fell. Revenues at City of Dreams were US$759.1m compared to US$726.1m for the same quarter last year, Altira Macau generated US$113.9m compared to US$137.6m whilst Mocha Clubs was up slightly accounting for US$28m in the fourth quarter of 2019 compared to US$26.5m a year earlier. City of Dreams Manila generated US$153.5m compared to US$155.2m whilst the temporary casino in the Republic of Cyprus, along with the three satellite casinos, generated US$24.7m compared to US$15.6m in the fourth quarter of 2018.
Lawrence Ho, our Chairman and Chief Executive Officer, commented: “During the fourth quarter of 2019, despite macro headwinds and the events in Hong Kong, mass gaming operations at all of Melco’s integrated resorts have remained robust, which drove group-wide mass table games revenue to expand approximately 12 per cent year-over-year to an all-time-record-high of US$850 million. Adjusted Property EBITDA for the fiscal year 2019 has also expanded 14% year-over-year to reach an all-time-record-high of US$1,689m.
“Construction on the further expansion of Studio City is progressing. Upon completion, it will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE spaces.
In Terms of Japan, he added: “Japan continues to be a core focus for us. In September 2019, we announced our ‘Yokohama First’ policy as we focus our Japan team on bringing to Yokohama the best IR the world has ever seen. In December 2019, we submitted our response for the Yokohama RFC.
“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 Yokohama realize the vision of developing a world-leading IR with a unique, Japanese touch.”
