Melco Resorts & Entertainment reached 12 straight quarters of losses in the three months to 31 December 2022, reporting a net loss attributable to the company of US$251.9 million – widened from both the US$159.9 million loss in 4Q21 and the US$243.5 million loss in 3Q22.
The result, which saw group-wide operating revenues fall 30% year-on-year to US$337.1 million, was entirely due to the ongoing pandemic situation in Macau, while Adjusted Property EBITDA loss of US$6.8 million compared with a positive print of US$94.0 million a year earlier.
The company noted though that results have improved since Macau’s border restrictions were dropped earlier this year, with Chairman and CEO Lawrence Ho stating, “Our results for the fourth quarter of 2022 continued to be impacted by the travel restrictions imposed across mainland China and Macau. However, we are encouraged by the increased visitation and volume that we have seen since the travel restrictions between mainland China and Macau were relaxed on 8 January 2023.
“Our recent performance reinforces our belief in the return of pent-up demand and our view that Macau will continue to develop as a leading international destination for entertainment and leisure.”
Melco’s Q4 results included a 43% decline in operating revenues at City of Dreams Macau to US$139.2 million, with an Adjusted EBITDA loss of US$7.8 million. The company attributed the year-over-year decline in Adjusted EBITDA to softer performance in the mass market table games segments as well as in non-gaming operations.
At Studio City, operating revenues halved year-on-year to US$43.4 million with an Adjusted EBITDA loss of US$100,00, with all gaming and non-gaming segments showing softer results.
Altira Macau saw its operating revenues fall from US$13.3 million in 4Q21 to US$9.0 million with an Adjusted EBITDA loss of US$9.5 million, while Mocha Clubs and “others” generated operating revenues of US$19.5 million – only slightly down year-on-year – and Adjusted EBITDA of US$1.8 million.
In the Philippines, City of Dreams Manila saw operating revenues rise 13.5% year-on-year to US$95.2 million, although this was lower than the US$102.6 million recorded in Q3. City of Dreams Manila generated Adjusted EBITDA of US$23.6 million in 4Q22, compared with Adjusted EBITDA of US$34.6 million a year earlier.
Melco said rolling chip volume at City of Dreams grew by 356% to US$940.7 million, while mass market table games drop was 31% higher at US$148.2 million and gaming machine handle 25% higher at US$1.02 billion.
And in Cyprus, where Melco operates three satellite casinos and a temporary facility while it develops City of Dreams Mediterranean, operating. Revenues climbed from US$22.4 million to US$28.7 million – generating Adjusted EBITDA of US$10.5 million.
For FY22, Melco reported group-wide revenues of US$1.35 billion, down from US$2.01 billion in 2021, while Adjusted Property EBITDA of US$600,000 compared with Adjusted Property EBITDA of US$235.1 million in 2021.
Net loss attributable to Melco Resorts & Entertainment Limited was US$930.5 million, widened from a net loss of US$811.8 million reported a year earlier.
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