Hong Kong-based Melco Resorts and Entertainment reduces loss by 90% 2Q23 vs same time last year

Although still in the negative this quarter, Melco Resorts and Entertainment, managed to reduce its loss from 251.49 million USD to 23.44 this quarter; the operator behind the Philippines’s City of Dreams announced that July has been its best month since reopening; group set to develop W Macau property further.

Original story by Kelsey Wilhelm for Asia Gaming Brief

Melco Resorts & Entertainment managed to taper its loss in the second quarter to $23.44 million, down from $251.49 million in the same period of 2022, related to its Studio City, City of Dreams Manila and City of Dreams Mediterranean properties.
The figures come despite a 239 percent increase in casino revenue yearly, to $768.45 million, with the first six-month figure topping $1.36 billion, up 118 percent yearly.

The group generated adjusted property EBITDA of some $267.3 million, a strong increase from the loss of $13.8 million in the second quarter of 2022.

Speaking of the results, Lawrence Ho – CEO and Chairman of Melco noted that “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.”.

Furthering the results announcement, the businessman noted that ““Labor supply issues in Macau have been largely resolved […] 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.”

The group notes that it has lost some 2,000 employees since 2019 but that the move is “expected to translate into continued cost savings”, according to the group’s CFO.

The group also notes that air traffic to Macau has only recovered to roughly 50 percent of pre-pandemic levels, despite overall tourism return exceeding expectations, “driven really by premium mass”, states Lawrence Ho.

The CEO notes that July has been the “best month since reopening”, despite starting out slow in the first quarter, and facing “aggressive” competition “in terms of the reinvestment and the referral fees that they pay”.

The group is now looking for the mass segment to truly augment its offerings, noting that its lower-end property Studio City is now capturing roughly 4 percent of market share.
Learn more insights on Melco’s performance this quarter, including about its properties in the mediterranean. Read the full article by Kelsey Wilhelm here: https://agbrief.com/intelligence/deep-dive/02/08/2023/melco-sees-23-4-million-loss-in-2q23-on-manila-cyprus-expenditure/