Zona de Azar China – Melco Reduces Operating Loss as EBIDTA Bounces Back at All its Macau Casinos
China.- July 28, 2021 www.zonadeazar.com Melco Resorts generated operating loss for the second quarter of 2021 of US$128.1m, compared with operating loss of US$370.8m in the second quarter of 2020.
Total operating revenues for the second quarter of 2021 were US$566.4m, representing an increase of approximately 222 per cent from US$175.9m for the comparable period in 2020. The increase in total operating revenues was primarily attributable to an improved performance in all gaming segments and non-gaming operations as a result of a year-over-year increase in inbound tourism in Macau.
Melco generated Adjusted Property EBITDA of US$79.1m in the second quarter of 2021, compared with negative Adjusted Property EBITDA of US$156.3m in the second quarter of 2020.
Net loss attributable to Melco Resorts & Entertainment Limited for the second quarter of 2021 was US$185.7 million, or US$0.39 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$368.1m, or US$0.77 per ADS, in the second quarter of 2020.
Lawrence Ho, Chairman and Chief Executive Officer, said: “We are pleased to see a progressive recovery in business levels during the second quarter of 2021 in our integrated resorts, despite the challenges that we have faced as a result of the COVID-19 pandemic and related travel restrictions. Mass and premium mass market players have proven to be the primary drivers of the recovery this quarter and are expected to be going forward as we continue to dedicate our resources toward these segments of the market. We remain optimistic on our Macau market outlook, especially as Macau explores scenarios for more flexible travel with other cities in the Greater Bay Area.”
In Macau, Melco’s mass table games operation, which contributes the vast majority of its EBITDA, saw another quarter of sequential improvement. Continuing the trend from last quarter, Melco delivered positive property EBITDA at each of its Macau operations with a more than 10 per cent increase and GGR and a nine times growth in EBITDA.
Mr. Ho added: “We applaud 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 partners to contribute to Macau’s sustainable development and economic recovery. Through the efforts of the government, we are fortunate that vaccines are readily available. With colleague immunity established as a key company objective to ensure a safe environment for colleagues, guests and the community, Melco is supporting the government’s efforts towards community-wide vaccination. We have earmarked close to MOP 16 million towards a special “Get the Jab” immunity incentive program to encourage our colleagues to become fully vaccinated. To date, almost 65 per cent of our colleagues in Macau and Hong Kong have been vaccinated.
“In Europe, the development of City of Dreams Mediterranean continues, with a target opening in summer 2022. The project, 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.
“Turning to Japan, we remain committed to bringing a world-leading integrated resort there, and continue to pursue opportunities within the market where we remain actively engaged with our partners. COVID continues to present challenges for the country in terms of process timing and travel, but the development of the integrated resorts industry in Japan has continued to move forward. We remain convinced that Japan represents the best potential new gaming market globally and that the quality of our assets and our focus on the premium segment is a great fit for the country’s tourism development.
Edited by: @_fonta www.zonadeazar.com
