Asian gaming and hospitality heavyweight Melco has shared its unaudited second-quarter financial results. Total operating revenues for Q2 were 947.9 million, representing an increase of approximately 220% from $296.1 million for the comparable period in 2022.
According to the company, the increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations, driven by 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.
Breaking down the revenue figure for Q2, Melco saw increases across the board, with $768.6 million made in its casino division, representing a significant rise against 2022’s $231.9 million. Furthermore, it saw a 200% rise in room revenue, totaling $80 million. The company saw a further increase in its entertainment, retail, and others division, where it made $52.9 million versus a $17.5 million figure in Q2 2022; while food and beverage revenue rose by 133%, totaling $46.5 million.
Lawrence Ho, Chairman and CEO
Lawrence Ho, Chairman and CEO, commented: “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. We’ve seen a mass drop increase month-to-month and turnover in our premium direct VIP segment continued to exceed 2019 during the second quarter.”
According to the executive, labor supply issues in Macau have been largely resolved, allowing the company to provide its customers with its full suite of services and amenities. The business expects to add another 560 hotel rooms to its portfolio with the opening of W Macau at Studio City in September.
The mass segment is also leading the recovery in the Philippines, continuing to outperform 2019 in the second quarter of 2023. And in Cyprus, Melco opened City of Dreams Mediterranean to the public in July after a successful soft opening in June.
City of Dreams Macau
Breaking down figures by resort finds City of Dreams Macau posted operating revenue of $506.2 million in Q2, up from $97.3 million the prior year. The Altira Macau hotel posted operating revenues of $29.3 million, up from $7.2 million in 2022; Studio City‘s operating revenues were $236, compared to $35.9 million the prior year; and City of Dreams Manila posted operating revenues of $116.4 million, up when compared to $111.7 million in Q2 2022.
During the second quarter, Melco’s total operating costs and expenses stood at $883.7 million, up from the $505.3 million reported the prior year. The business’ biggest expenditure is seen in its casino division at $505.6 million, which totals more in Q2 2023 than the company’s whole operating cost and expenses total in Q2 2022.
The company’s adjusted earnings before interest, tax, depreciation, or amortization (EBITDA) grew to $267.3 million in Q2, as opposed to a $13.8 million loss the previous year.
Melco also reported a $51.1 million net loss, a significant improvement on Q2 2022’s $294 million loss. Since Q2 2019, when the company made a $99.3 million profit, Melco has seen consistent losses in its subsequent Q2 reports, with Q2 2020 posting a $426.8 million loss, and Q2 2021 seeing a $220.1 million loss.
The Altira Macau
For the six-month period, revenue increased to $1.66 billion, compared to the $771.1 million achieved the year before. This represented a 115.3% rise, meaning the majority of the growth occurred in this quarter. This is the largest H1 total in this calendar decade, with only 2019’s $2.8 billion higher. It also represents only the second time it has seen a figure of over a billion dollars since the dawn of 2020, with its 2021 figure standing at $1.09 billion.
Melco’s H1 operating income was $64.6 million. This is largely similar to the business’ quarterly figure since it achieved almost all of the income this quarter, only recording $333,000 for Q1. Meanwhile, the business reported $412.1 million in adjusted EBITDA for the six-month period.
The business’ share price has only increased in the last 12 months, priced at $5.08 on August 2, 2022. However, it is now priced at $13.17, slightly down from its year high of $14.39 on 21 April 2023.
Original article: https://www.yogonet.com/international/noticias/2023/08/03/68167-melco-revenue-reaches-9479m-in-q2-driven-by-growth-across-all-business-segments
