Melco International Development Limited, the parent company of Melco Resorts & Entertainment has reported HK$8.43 billion (US$1 billion) in net revenues for the first half of this year, a 9.7 per cent year-on-year rise, with some HK$3.75 billion in losses after-tax, the group’s latest financial report indicated.
‘Macau has enjoyed a steady recovery in its overall economy as travel restrictions loosen and visitors gradually return. This also led to a gradual recovery in business levels at our integrated resorts during the second quarter of 2021,’ group Chairman and CEO Lawrence Ho indicated in the report.
According to Ho, the most notable recovery is currently being driven by mass and premium mass-market players, with Melco continuing to focus on the development of these market segments going forward.
City of Dreams ended the period with some US$119.6 million in Adjusted Property EBITDA, with VIP gaming rolling chip volume falling by 18.7 per cent year-on-year to HK$8.6 billion but with mass play rising 151 per cent to HK$1.5 billion.
Meanwhile, Studio City generated a negative Adjusted Property EBITDA of US$6.4 million during the same period, with VIP gaming volume falling 44 per cent year-on-year to HK$891 million and with mass table drop rising 68 per cent to HK$629 million.
Melco International generated HK$732.5 million in Adjusted EBITDA for the first six months of 2021, after negative results in the same period last year. A total of HK$1.65 billion in loss attributable to owners of the company was reported.
The group’s Cotai Studio City property Phase 2 development has continued in the period, as have facility upgrade works at City of Dreams. Melco is also advancing with the strategic repositioning of Altira Macau to cater to the premium mass segment in the coming months.
City of Dreams Manila has again closed since August 6 due to a resurgence in cases in the city, while Melco’s Cyprus casinos continue to run at limited capacity.
During this period, Melco successfully tendered for a mixed-use site in Zhongshan, Guangdong province, to be used as the location for a premium residential, entertainment and hospitality mixed-use complex, which will be built in partnership with Agile Group.