Melco Resorts & Entertainment is still losing money in the wake of the Covid-19 pandemic, but it’s losing a lot less than earlier the year. The company reported a net loss of US$23.4 million for the second quarter of 2023, up from US$81.3 million in the first quarter, according to figures released by Melco today.
Operating revenue was up 220 percent year-on-year, reaching US$947.9 million for the quarter. This includes gaming revenue of US$768 million and non-gaming revenue of US$179 million. Operating income, meanwhile, was US$64.3 million. In the second quarter of 2022, Melco made an operating loss of US$209.2 million.
In a press release, Melco’s Chairman and CEO Lawrence Ho said the 43 percent increase in gross gaming revenue (quarter-on-quarter) reflected “the strength of our Macao recovery”.
“We’ve seen mass [gaming] drop increase month-to-month and turnover in our premium direct VIP segment continued to exceed 2019 during the second quarter.”
[See more: Casinos are still the biggest draw to Macao]
The gaming operator attributed its improved performance to Covid-19-related restrictions being lifted in January, the opening of Studio City Phase 2’s Epic Tower and indoor waterpark in April, and its recently launched residency concerts at Studio City. The indoor water park spans nearly 10,000 square metres, while the Epic Tower is a luxury hotel boasting 338 suites.
Ho said Melco had more expansion plans in the pipeline. He expected to add 560 hotel rooms to Macao’s current stock with the opening of W Macao at Studio City in September, for example. Ho also noted that the company’s labour supply problems in Macao had been “largely resolved.”
“[We] are well positioned to support the continuing increase of customers in Macao,” he said.
Hong Kong-based Melco Resorts & Entertainment operates four integrated resorts in Macao, including Studio City, City of Dreams, Altira Macau, and Mocha Clubs. It also operates casinos in the Philippines and Cyprus.
Melco’s casino in the Philippines, City of Dreams Manilla, earned total operating revenues of US$116.4 million during the second quarter of 2023. Its three satellite Cyprus casinos earned a collective US$30.9 million. Melco officially opened a fourth Cyprus casino, City of Dreams Mediterranean, in July 2023.
