Melco talks Cyprus potential as Macau steers Q2 recovery

Melco Resorts & Entertainment says the relaxation of Covid restrictions in Macau fuelled a 220 per cent year-on-year increase in total operating revenues for Q2.

Total revenue of US$947.9m, up from $296.1m a year ago, was matched by a return to operating income of $64.3m for the group compared to an operating loss of $209.2m a year ago.

Adjusted property EBITDA has also recovered to $267.3m in Q2, up from a negative adjusted property EBITDA of $13.8m in Q2 last year. Net loss for Melco in Q2 was $23.4m, down from $251.5m a year ago.

Lawrence Ho, chairman and CEO of Melco, said the “strength of our Macau recovery is evident in the 43 per cent increase in gross gaming revenue” in Q2 compared to Q1 this year.

The company also pointed to the openings of Studio City Phase 2’s Epic Tower and indoor waterpark in April, as well as the launch of residency concerts at Studio City in the same month, in helping steer the overall improvement.

Furthermore, Melco opened its City of Dreams Mediterranean in July after a soft opening in June. The group continues to operate three satellite casinos in Cyprus alongside the City of Dreams Mediterranean. Melco said that collectively, the Cyprus Casinos’ total operating revenue for Q2 was $30.9m compared with $21.7m a year ago.

Ho said that Melco is “excited” for the potential of City of Dreams Mediterranean.

He added: “Labour supply issues in Macau have been largely resolved. We have been able to provide our customers with Melco’s full suite of services and amenities.

“We expect to add another 560 hotel rooms to our portfolio with the opening of W Macau at Studio City in September and are well positioned to support the continuing increase of customers in Macau.

“The mass segment is also leading the recovery in the Philippines, continuing to outperform 2019 in the second quarter of 2023.”

Elsewhere, Studio City posted total operating revenues of $236m in Q2, up from $35.9m a year ago, while City of Dreams Manila’s total operating revenues increased to $116.4m from $111.7m in Q2 2022.