Melco Resorts & Entertainment Limited has seen its Adjusted Property EBITDA rising 170 per cent quarter-to-quarter to some US$53 million (MOP423.3 million) in the last three months of 2020, the group’s latest financial report indicated.
At the same time, the gaming concessionaire reported some US$199.7 million in net losses, while net revenues dropped by 64 per cent year-on-year to about US$530 million.
“COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance. Despite these challenges, our integrated resorts experienced a moderate recovery in business levels during the fourth quarter,” Melco’s Chairman and CEO, Lawrence Ho, commented on the report.
The group’s gaming results amounted to some US$497mm, a sequential 234 per cent rise, with VIP rising 91 per cent to US$148mm and mass-market some 386 per cent to US&350 million.
“We continue to prudently manage our balance sheet. As of December 31, 2020, we had cash on hand of approximately US$1.8 billion, and undrawn revolver capacities of approximately US$2.0 billion,” Ho added.
In January, Studio City issued US$750 million of 5.00% senior notes due in 2029, and Melco issued an additional US$250 million from the 5.375% 2029 senior notes.
“These transactions reduced our average borrowing rate and extended our maturity profile,” Ho noted.
The group’s CEO also noted that despite the pandemic Melco remains committed to its global development program.
‘In Macau, construction on the expansion of Studio City is progressing. Upon completion, […] our facility upgrade works at City of Dreams are ongoing, with the fully renovated Nϋwa nearing completion,’ he stated.
The Studio City expansion will include 900 rooms and suites as well as world-class non-gaming attractions including one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and more MICE space.
Last year Melco announced that it was unlikely the completion of Phase 2 of Studio City’s expansion would meet its deadline for May 31, 2022 due to the impact of the pandemic in the group’s operations.
‘In Europe, we are developing City of Dreams Mediterranean which, upon completion, will be Europe’s largest integrated resort with more than 500 luxury hotel rooms, approximately 10,000 square meters of MICE space, an outdoor amphitheatre, a family adventure park, and a variety of fine-dining outlets and luxury retail.
Ovwrall in 2020 Melco Resports reported total operating revenues of US$1.73 billion, versus US$5.74 billion in the prior year.
The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the COVID-19 pandemic, which resulted in temporary casino closures and a significant decline in inbound tourism in 2020.
Operating loss for 2020 was US$940.6 million, compared with operating income of US$747.7 million for 2019.