Melco narrows net loss, Q1 operating revenue jumps 51 pct buoyed by Macau reopening

“The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments primarily due to the relaxation of COVID-19 related restrictions in Macau during the quarter,” Melco said in a press release announcing the first-quarter unaudited results.

The company’s net loss narrowed to US$81.3 million compared to US$183.3 million in the first quarter of 2022, while it reached an operating income of US$400 million, compared with an operating loss of US$135.9 million a year ago.

The integrated resorts operator with businesses in Asia (Macau and the Philippines) and Europe (Cyprus) also announced that its Adjusted Property EBITDA saw a 240 per cent year-on-year increase to US$190.8 million.

Melco Resorts & Entertainment Chairman and Chief Executive Officer Lawrence Ho said the company has seen “a very encouraging start to the recovery in Macau during the first quarter of 2023, following the relaxation of border restrictions in early January.”

“We continued to see improving momentum into April and Golden Week in May, with mass-market table games drop and mass gross gaming revenue during the Golden Week period exceeding the same period in 2019.”

Macau’s casino gross gaming revenue (GGR) increased by 449.9 per cent year-on-year in April to MOP14.72 billion (US$1.83 billion). In the first quarter of 2023, Macau’s gross gaming revenue stood at MOP 34.6 billion (US$4.3 billion), accounting for a 94 per cent year-on-year hike.

Melco’s flagship casino, City of Dreams, in Macau was the primary driver behind the company’s 1Q23 improvement. Gross gaming revenues increased significantly, with a 43 per cent year-on-year rise to US$399 million.

At Studio City, gaming revenues grew by 96 per cent to US$147 million, with mass table games generating the majority of this revenue, while Altira reported a 70 per cent year-on-year increase in Q1 GGR to US$23 million.

Recovery is also underway in the company’s Manila operations, as City of Dreams Manila saw an operating revenue of US$133.3 million, compared with US$86.9 million in the first quarter of 2022.

Melco is licensed to operate a temporary casino and four satellite casinos as City of Dreams Mediterranean is expected to open later this year. Total operating revenues at their satellite casinos was US$27.8 million, up from US$16.1 million a year ago.