Integrated Resorts Developer and Operator Melco Resorts & Entertainment reported a 51% increase in revenue year-on-year, to $716.5m. (PS565.3m/EUR651.8m). The business claimed that the growth was “primarily due” to the relaxation of Covid-19-related restrictions in Macau.
Melcochairman Lawrence Ho, CEO and chairman of the board, outlined how the gaming industry in the city has recovered from the previous year to 2023.
He said: “We’ve seen an encouraging start in the recovery of Macau in the first quarter 2023 following the relaxation in border restrictions early in January.”
The Golden Week period saw a significant increase in gross gaming revenues and a drop in mass market table games.
Worst Year on Record
Macau casinos had their worst ever year in 2022 as increased restrictions, such as a summer-long lockdown, drove revenue down to $5.2bn. This was a 51.4% drop from 2021, and an 85.5% drop from the pre-pandemic total of 2019.
The company’s operating profit of $0.4m for the three months ending 31 March was a significant improvement on the operating loss of $135.9m the business reported the previous year.
Melco’s adjusted property earnings before interest, taxes, depreciation, or amortisation rose by 240.7%, from $56.0m up to $190.9m.
Melco’s net loss for Q1 was $81.3m, but when debt and liabilities are taken into account, the company reported a loss of $81.3m. Comparing this to the $183.3m reported in the same quarter last year, the net loss for Q1 was $81.3m.
City of Dreams Adj. EBITDA recovery
Macau City of Dreams, the company’s flagship integrated resort casino, saw revenues rise 39.6% on an annual basis to $358.3m. This compares to the $256.7m that the business had achieved during the same period last year. The casino-hotel complex’s adjusted EBITDA grew from $44.4m up to $94.9m.
The company said the EBITDA increases were “primary” the result of improved performance in its mass market table game segment as well as in the resort’s other non-gaming operations.