Gaming and integrated resorts operator Melco Resorts & Entertainment announced it posted Adjusted Property EBITDA of US$303.4 million in the fourth quarter of 2023, 8.1 percent more than in the July-to-September period.
The group, which operates casinos in Macau, the Philippines, and Cyprus, also announced that its total operating revenue reached US$1.09 billion, above the US$1.02 billion figure of the third quarter and 224 percent more than in the fourth quarter of 2022. The City of Dreams casino-resort in Macau contributed more than half (US$559.8 million) of the group’s total operating revenues.
“The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of COVID-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2,” Melco said in a statement.
However, the net loss attributable to Melco Resorts & Entertainment expanded in the fourth quarter to US$156.6 million, almost ten times the US$16.3 million in the previous quarter. The company’s full-year net loss was US$277.6 million, an improvement from US$930.5 million in 2022.
Commenting on the fourth-quarter results, Melco’s Chairman and Chief Executive Officer Lawrence Ho said, “Macau continues to demonstrate its extraordinary growth potential and has shown resilience despite China’s uncertain macro-economic outlook.” He added that visitations to Macau during the Chinese New Year holiday period were close to 2019 levels and the number of visitors from China exceeded 2019.
The group’s property in the Philippines, City of Dreams Manila, saw operating revenues reaching US$120.5 million in the last three months of 2023, slightly below the US$124.9 million figure of the third quarter, while Adjusted EBITDA of US$48.8 million remained basically unchanged from the previous quarter.
Regarding the group’s business in Cyprus, where it operates City of Dreams Mediterranean and three satellite casinos, operating revenues were US$47.3 million, down from US$53.4 million in the third quarter.
Melco’s note on other factors affecting earnings, Melco indicates that in the fourth quarter it “recognized an impairment in long-lived assets of US$207.6 million in Property Charges and Other to reflect the significant decrease in the market value of Altira Macau,” adding that the “change in market value reflects a change in forecasted performance of Altira Macau given the latest market conditions and disruptions to the business caused by COVID-19 and the cessation of arrangements with gaming promoters.”
