Melco’s operating loss expands to US$209.2 million in Q2

Gaming operator Melco Resorts & Entertainment Limited has announced an operating loss of US$209.2 million in the second quarter of 2022, compared with a loss of US$128.1 million in the same period of last year.

In a filing to the Hong Kong Stock Exchange this evening (Thursday), the gaming company also indicated  that total operating revenues plunged by 48 per cent year-on-year to US$296.1 million.

Net loss attributable to Melco Resorts for the second quarter of 2022 was US$251.5 million, compared with net loss of US$185.7 million in the second quarter of 2021.

Melco’s adjusted property earnings before interest, taxes, depreciation, amortization and other costs and charges (EBITDA) was US$13.8 million in the second quarter, a deterioration from the positive US$79.1 million in the second quarter of 2021.

The group, which has operations in Macau, Philippines and Cyprus, saw its casino revenue cut by half in the second quarter of 2022, compared with the same period of 2021.

The filing notes that “uncertainty around COVID-19 outbreaks and related restrictions continue to have a material effect on Melco Resorts’ operations, financial position, and future prospects into the third quarter of 2022”, namely in Macau where the group’s “operations remain significantly impacted by travel restrictions and quarantine requirements.”

Melco Resorts Chairman and Chief Executive Officer Lawrence Ho said “It goes without saying that our results for the second quarter of 2022 were heavily impacted by the COVID-19 pandemic and the restrictions imposed across mainland China and Macau”, while stressing that “throughout the pandemic, ensuring the health and safety of our Colleagues has been very important, and these continued to be our highest priority through the recent outbreak in Macau.”

Philippines, Cyprus recovering towards pre-COVID levels

The situation in the Philippines and Cyprus is different from that of Macau. As of May 30, restrictions for inbound travelers into the Philippines have been eased and negative RT-PCR test results are no longer required for those people that are fully vaccinated.

In Cyprus, as of June 1, passengers travelling to Cyprus are not required to present any sort of vaccination or recovery certificate, nor a negative COVID-19 test result.

When looking at the group’s performance in the three jurisdictions, Lawrence Ho says that “in contrast to the challenges we have been facing in Macau, our businesses in the Philippines and Cyprus have been improving with volumes gradually recovering toward pre-COVID levels,” as quoted in a press release issued by Melco Resorts.

The group operates three properties in Macau: City of Dreams, Altira and Studio City in addition to the Mocha slot machine parlours.

In the Philippines it operates City of Dreams Manila, while in Cyprus Melco runs satellite casinos, as City of Dreams Mediterranean is being completed.