Melco Resorts & Entertainment has reported a net loss of US$81.3 million for the three months to 31 March 2023, narrowed from a US$183.3 million loss a year earlier due to the improved performance of its Macau properties since COVID-19 border restrictions were eased in January.
The change in fortunes saw Melco’s operating revenues grow by 51% year-on-year to US$716.5 million, with Adjusted Property EBITDA of US$190.8 million representing a 241% increase.
Likewise, operating income of US$400,000 compared with an operating loss of US$135.9 million in the first quarter of 2022.
Much of the 1Q23 improvement was driven by the company’s Macau flagship, City of Dreams, which saw gross gaming revenues climb to US$399 million – up 43% on 1Q22 and 202% on the December 2020 quarter. This included a 63% year-on-year increase in mass table GGR to US$275 million and 98% increase in slots GGR to US$26 million, while VIP revenues were largely flat at US$97 million. Adjusted Property EBITDA of US$95 million was 114% higher than the same period in 2022.
At Studio City, GGR grew by 96% year-on-year to US$147 million, also led by mass table games which generated US$119 million of those gaming revenues. Adjusted EBITDA more than tripled to US$21 million.
Altira, which ceased its VIP gaming operations in 2021, reported Q1 GGR of US$23 million – up 70% year-on-year – of which US$21 million was from mass tables. The property reported a US$2 million Adjusted EBITDA loss.
And in the Philippines, City of Dreams Manila saw GGR increase 57% year-on-year and 27% sequentially to US$44 million. Mass GGR was up 46% year-on-year to US$55 million, slots up 14% to US$53 million and VIP GGR up 409% to US$36 million. Adjusted Property EBITDA was 85% higher at US$61 million.
In Cyprus, where Melco is due to open its City of Dreams Mediterranean integrated resort in the coming months, the company’s satellite casinos generated US$28 million in combined gaming revenues, with Adjusted EBITDA of US$9 million comparing to a US$17 million EBITDA loss in 1Q22.
Melco Chairman and CEO Lawrence Ho said, “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.”
