Melco Resorts managed to reduce its operating losses inf the first quarter of 2022 to US$135.9 million, despite an 8 per cent year-on-year drop in total operating revenues to US$474.9 million.
The group attributed the drop in revenue to ‘heightened border restrictions in Macau due to COVID-19, which led to a softer performance in the mass market table games segment.
Net loss attributable to Melco Resorts for the first quarter of 2022 was reduced to US$183.3 million from the previous quarter, with a US$56 million in Adjusted Property EBITDA recorded.
“We saw a solid performance in Macau through the Chinese New Year holiday period, but COVID-related restrictions and tighter border controls led to Macau GGR falling more than 50 per cent from February to March 2022, and negatively impacted our operating and financial performance for the remainder of the first quarter,” the group’s CEO, Lawrence Ho, pointed out
Ho highlighted that ‘disciplined liquidity management’ remains a key area of focus as total debt incurred by the group increased by US$1.3 billion year-on-year as Melco increased available liquidity to support our operations and ongoing development projects.
Melco Resorts initiate a share repurchasing plan of up to US$500 million of its ordinary shares over a three-year period commencing from 2 June 2021
The group also reported a total of US$151.5 million in capital expenses were also included, which primarily related to the construction projects at Studio City Phase 2 and City of Dreams Mediterranean in Cyprus.
“We will be prudent in managing our balance sheet and liquidity profile as we manage the business through this challenging environment,” Lawrence Ho added.
Construction of Studio City Phase 2 was said to be progressing, with Melco maintaining its deadline set in the land concession of December 27, 2022 for completion.