Melco Resorts & Entertainment has reported a net loss of US$232.9 million for the three months to 31 March 2021, improved from a loss of US$364 million over the same period last year but widened from the US$199.7 million loss in 4Q20 due to the ongoing effects of the COVID-19 pandemic.
While reduced costs helped Melco narrow its loss compared with 1Q20 – which included a 15-day period in February where all Macau casinos were closed – operating revenues remained subdued at just US$520 million, down 36% year-on-year and down 2% compared with the final quarter of 2020.
Adjusted EBITDA of US$30.1 million was 60% lower year-on-year and 44% lower than Q4.
However, Melco noted that the sequential decline in group-wide performance was entirely attributable to Studio City in Macau, City of Dreams Manila and the Cyprus operations, which recorded negative EBITDA compared with Adjusted EBITDA of US$40.0 million for flagship property City of Dreams Macau.
“COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance,” said Chairman and CEO Lawrence Ho.
“Despite these challenges, our integrated resorts experienced a moderate recovery in business levels during the first quarter.
“We commend 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 (SME) partners to contribute to Macau’s sustainable development and economic recovery.”
City of Dreams Macau accounted for a significant majority of Melco’s Q1 revenues at US$302.5 million, down from US$467.6 million in 1Q20 and from US$321.2 million in Q4 on the back of a decline in the rolling chip segment.
Rolling chip volume was down 52% year-on-year to US$4.13 billion while mass market table games drop booked a 28% increase to US$730 million.
Studio City reported a 28% decline in revenues to US$97.9 million with an Adjusted EBITDA loss of US$5.2 million and Altira Macau a 73% decline in revenues to US$14.3 million with an Adjusted EBITDA loss of US$29.6 million. City of Dreams Manila saw its revenues also fall 28% to US$79.5 million with Adjusted EBITDA of US$29.4 million – flat compared with Adjusted EBITDA of US$29.6 million in 1Q20.