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China – Revenues fall 36 per cent but loss improves for Melco

By - 30 April 2021

Macau casino group Melco Resorts & Entertainment saw its net loss improve during the three months to March 31 2021, reaching US$232.9m compared to a loss of US$364m for the same time period last year. The loss increased from quarter to quarter though rising from a loss of US$199.7m in the fourth quarter of 2020.

Total operating revenues for the first quarter of 2021 were US$0.52bn, representing a decrease of approximately 36 per cent from US$0.81bn for the comparable period in 2020. The decrease in total operating revenues was primarily attributable to a year-over-year decline in inbound tourism in the first quarter of 2021, compared to the first quarter of 2020, which was only partially impacted by the restrictions from the COVID-19 pandemic.

Lawrence Ho, our Chairman and Chief Executive Officer, commented, “COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance. Despite these challenges, our integrated resorts experienced a moderate recovery in business levels during the first quarter.

“We commend the Macau government’s measured approach to reopening the border and schemes to boost the economy and support local jobs. In this regard, we continue to prioritize epidemic prevention measures to keep our colleagues and customers safe, while working collaboratively with small and medium enterprise (SME) partners to contribute to Macau’s sustainable development and economic recovery.

“While impacted by COVID-19, Melco remains committed to its global development program. In Macau, construction on the expansion of Studio City is progressing. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space. The expansion of the current water park at Studio City Phase 1 is complete and will open on May 22, 2021. Also in Macau, our facility upgrade works at City of Dreams are ongoing, where the fully renovated Nϋwa hotel re-opened at the end of March 2021, while the Countdown closed down at the end of March 2021 to undergo a full renovation. In Europe, we are developing City of Dreams Mediterranean which, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, approximately 10,000 square meters of MICE space, an outdoor amphitheater, a family adventure park, and a variety of fine-dining outlets and luxury retail.

“Additionally, in recognition of the Company’s commitment to sustainable building design and development as part of its Above and Beyond sustainability strategy, Studio City Phase 2 was named winner of the BREEAM Awards’ 2021 ‘Regional Award, Asia’. Both Studio City Phase 2 and City of Dreams Mediterranean have attained BREEAM’s “Excellent” rating at the Design Stage where the highest sustainability standards in development have been incorporated into the building’s design.

“Turning to Japan, we remain committed to bringing to the country a world-leading IR. We continue to 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 a continuing commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing an exceptional IR with a uniquely Japanese touch. Due to COVID, the process in Japan has been delayed and remains complex but has continued to progress forward. Melco is currently actively engaged with multiple potential partners. We will continue to be patient as we navigate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.”

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