Macau (MNA) – Gaming operator Melco Resorts & Entertainment Limited recorded US$1.36 billion (MOP10.99 billion) in net revenue in the first quarter this year, a 4 per cent increase year-on-year, according to a release on the Hong Kong Stock Exchange (HKEX).
The increase was primarily attributable to a better performance in the mass market table games segment and higher non-gaming revenue as a result of the opening of Morpheus in June last year.
The first quarter operating income was down by 15 per cent to US$188 million, while adjusted property EBITDA amounted US$406.9 million, a 1 per cent increase compared to the same period of last year.
Net income amounted to some US$117.4 million, with net income attributable to non-controlling interests during the first quarter of 2019 and 2018 reached US$1.0 million and US$6.7 million, related to Studio City and City of Dreams (CoD) Manila, respectively.
Brokerage Berstein analyzed that while Morpheus at CoD continues to ‘ramp’, the gains do not seem as strong as the brokerage expected, and that weakness in high-end Premium is weighing on CoD mass results.
Besides, Berstein pointed out that the growth of Studio City in the mass market was mostly helped by the longer length of play, while CoD Manila has faced strong competition and is expanding its VIP offering.
However, the brokerage expected Melco’s second quarter performance to pick up thanks to the Labour Day holiday, which brought the highest amount of visitors to Macau in five years.