Coronavirus restrictions contribute to 30% Melco drop

Coronavirus restrictions in Q4 2022 contributed to a 30 per cent year-on-year drop in revenues for Melco Resorts and Entertainment.

Total operating revenues for the company were US$337.1m for the quarter, down from $480.6m for Q4 2021.

Operating loss subsequently increased over the same periods, to $199.5m from $104.4m.

And adjusted EBITDA for Q4 2022 was negative, at $6.8m compared to $94m in Q4 2021.

Lawrence Ho, chairman and chief executive officer at Melco, said the company was “encouraged” by the increased visitation numbers to Macau and China since coronavirus restrictions began to ease in January.

“Our recent performance reinforces our belief in the return of pent-up demand and our view that Macau will continue to develop as a leading international destination for entertainment and leisure,” he added.

Full-year revenues in 2022 decreased from $2.01bin in 2021 to $1.35bn, with operating loss increasing to $743.1m from $577.5m across 2021. Adjusted EBITDA was $600,000 for 2022, compared with $235.1m in 2021.

Ho said Melco will give its “full support” to the tourism and leisure industry in Macau after being granted a 10-year gaming concession.

He added that the company is “optimistic” about continued growth in the Philippines and Cyprus amid gaming volumes there exceeding pre-pandemic levels.

And as for future development projects, Ho said Studio City Phase 2 will open in Q2 this year, with one hotel tower and the indoor water park included in the first stage.