A massive 80.6% increase in revenue at Studio City in Macau and 46.6% growth at City of Dreams Manila has propelled Melco Resorts & Entertainment Ltd’s strong 2Q results, with revenue for the company up 21% year-on-year to US$1.3 billion.
On a US GAAP basis, operating income for the second quarter of 2017 was US$127.4 million, up 76% from US$72.4 million 12 months earlier, while property EBITDA rose 34% to US$245.3 million which Melco Resorts said was mainly attributable to better performance in the group-wide rolling chip segment.
Studio City, Melco’s second Cotai property which opened in 2015, was the star of the show following the commencement of VIP operations last November. It generated Adjusted EBITDA of US$80.7 million in 2Q17, up 228% from US$24.6 million in the second quarter of 2016.
Rolling chip volume totaled US$4.7 billion with a win rate of 3.3% while mass market table games drop increased to US$661.4 million year-on-year from US$592.2 million.
Net revenue at City of Dreams Manila for the quarter came in at US$176.2 million with Adjusted EBITDA of US$62.8 million in the second quarter of 2017 compared to US$36.5 million in the comparable period of 2016. The year-on-year improvement in Adjusted EBITDA was primarily a result of increased casino revenues.
Melco Resorts’ flagship Macau property, City of Dreams, saw a slight 2.3% increase in revenue to US$644.6 million, while Adjusted EBITDA fell to US$175.3 million from US$177.7 in 2Q16.
Rolling chip volume totaled US$12.2 billion versus US$9.9 billion 12 months earlier, with mass market table games drop increasing to US$1.07 billion compared with US$1.03 billion in the second quarter of 2016.
Explaining the results, Melco Resorts Chairman and CEO Lawrence Ho said, “City of Dreams in Macau is undergoing its final development phase which, upon completion, will result in our flagship integrated resort once again setting new benchmarks of luxury and premium-focused entertainment and hospitality, reflecting a culmination of over a decade of experience in serving high-end and increasingly discerning customers in Macau.
“With the opening of Morpheus in the first half of 2018, and the redevelopment of the Countdown, the property will have approximately 2,100 five-star and luxury hotel rooms, to complement the integrated resort’s already market-leading premium mass and direct VIP gaming amenities and other non-gaming offerings.
“Studio City, our second integrated resort in Cotai, provides an ideal complement to City of Dreams. The integrated resort’s focus on more mainstream mass market customers allows us to broaden our customer reach. The property continues to ramp up its core mass market operations, while the newly opened rolling chip operations provide an incremental driver for revenue and earnings growth.
“In the Philippines, City of Dreams Manila continues to deliver record revenue and Property EBITDA, resulting in an impressive return on invested capital. Our decision to invest in this fast growing and attractive market is testament to our approach of identifying and investing in markets that drive long term value for our shareholders.”
