Melco Resorts & Entertainment improves EBITDA profitability in 4Q21

According to the company’s financial results for the December quarter published overnight, total operating revenues fell 9% year-on-year to US$480.6 million, heavily impacted by a very low win rate at City of Dreams Macau.

However, cost cutting measures saw Adjusted Property EBITDA almost double, from US$53.4 million in 4Q20 to US$94.0 million, while net loss attributable to Melco Resorts & Entertainment Limited was US$159.9 million, narrowed from US$199.7 million in the prior year period.

“COVID-related travel restrictions continued to impact our fourth quarter operating and financial performance,” said Melco Chairman and CEO Lawrence Ho.

“We have maintained strong cost discipline under these challenging times and are pleased to see improving EBITDA profitability across each of our geographies this quarter. We are confident that our customers will return in numbers once restrictions are eased.

“We are pleased to see Macau’s vaccination rate now at over 80% and, to play our part, Melco’s employee vaccination rate in Macau has reached 95%. We hope that increasing vaccination rates can facilitate an easing of travel restrictions within the Greater Bay Area.”

Melco’s results included a 23.8% decline in operating revenues at City of Dreams Macau to US$244.8 million, with Adjusted EBITDA down 13.3% to US$49.7 million. Both the VIP and mass market table games segments were softer in 4Q21, with VIP producing similar year-on-year table drop of US$3.12 billion but win rate dropping from 3.76% to 1.68%.

Mass table drop was significantly lower than 4Q20 at US$690.9 million, while slot machine handle fell slightly to US$421.6 million.

Operating revenues at Studio City remained flat year-on-year at US$88.2 million although Adjusted EBITDA of US$100,000 was improved from an Adjusted EBITDA loss of US$5.5 million a year earlier.

Altira Macau, which ceased all VIP operations in 3Q21, saw operating revenues fall by more than half to US$13.3 million but narrowed its Adjusted EBITDA loss to US$100,000 on a high win rate in the mass market segment.

And at City of Dreams Manila, operating revenues of US$83.9 million compared to US$63.8 million in 4Q20, with Adjusted EBITDA doubling to US$34.6 million. This, Melco said, was primarily due to improved performance in the mass market table games and gaming machine segments, partially offset by softer performance in the rolling chip segment.

The company’s Cyprus Casinos saw operating revenues increase to US$22.4 million from US$8.2 million a year earlier, with Adjusted EBITDA of US$5.2 million.

Melco’s FY21 results saw operating revenues increase 16.2% year-on-year to US$2.01 billion, while Adjusted Property EBITDA of US$235.1 million reversed a US$104.3 million loss in 2020.