Melco Resorts & Entertainment has yet to return to profit since the easing of Macau border restrictions on 8 January, but it’s edging closer. The company reported a net loss of US$23.4 million in 2Q23, narrowed from a US$251.5 million loss in the same period last year and from a US$81.3 million loss in Q1 – the improved performance almost entirely due to the Macau recovery.
Operating revenues reached US$947.9 million for the quarter, up 231% year-on-year, including gaming revenue of US$768 million and non-gaming revenue of US$179 million. Adjusted EBITDA of US$267.3 million compared with an EBITDA loss of US$13.8 million in 2Q22 and EBITDA of US$190.8 million in 1Q23.
“The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations primarily due to the relaxation of COVID-19 related restrictions in Macau in January 2023, the openings of Studio City Phase 2’s Epic Tower and indoor waterpark in April 2023, as well as the launch of residency concerts at Studio City in the same month,” Melco explained.
By property, City of Dreams Macau led the way with GGR of US$584 million in Q2, of which mass tables contributed US$396 million – up 44% on Q1 – and slots US$21 million – down 18%. VIP GGR climbed by 71% to US$166 million, while Adjusted Property EBITDA climbed by 70% to US$161 million.
At Studio City, GGR climbed by 46% sequentially to US$214 million with Adjusted Property EBITDA doubling to US$41 million. While VIP GGR of US$11 million was flat, mass tables grew by 54% to US$183 million and slots by21% to US$20 million.
Altira also showed improvement with GGR of US$31 million pushing it back to an EBITDA profit of US$4 million.
Meanwhile in the Philippines, City of Dreams Manila saw GGR fall by 13% quarter-on-quarter to US$125 million due to a 55% decline in VIP GGR to US$16 million. Slots GGR was down by 9% to US$48 million although mass tables grew by 10% to US$61 million. Adjusted EBITDA fell 23% sequentially and 4% year-on-year to US$47 million.
And in Cyprus, Melco’s satellite casinos contributed combined GGR of US$30 million, up 7% sequentially, and Adjusted EBITDA of US$7 million, down 20%, in the June quarter.
“The strength of our Macau recovery is evident in the 43% increase in gross gaming revenue in the second quarter of 2023 compared to the first quarter of 2023,” said Melco Chairman and CEO, Lawrence Ho.
“We’ve seen mass drop increase month-to-month and turnover in our premium direct VIP segment continued to exceed 2019 during the second quarter.
“Labor supply issues in Macau have been largely resolved. We have been able to provide our customers with Melco’s full suite of services and amenities. We expect to add another 560 hotel rooms to our portfolio with the opening of W Macau at Studio City in September and are well positioned to support the continuing increase of customers in Macau.”
