Philippines: Melco reveals losses for Q2

Melco Resorts has announced financial results for the three months ending June 30 showing US$49.4 million in losses.

Philippines.- Melco Resorts has reported a Php2.41 billion (US$49.4 million) loss for its Philippines integrated resort, City of Dreams Manila, for the second quarter of the year.

The company attributes the fall to the “temporary closures of business and imposition of prohibition measures” in the country to fight against the Covid-19 pandemic.

During lockdown in the Philippines, Melco was granted permission by PAGCOR in June “to undertake a dry run/trial run of its gaming and hospitality operations with only a limited number of participants strictly adhering to the new guidelines on social distancing and hygiene and sanitation procedures imposed by the Philippine government”.

The company said: “The PAGCOR-sanctioned dry run/trial run aimed to address all potential operational concerns to achieve a seamless reopening for City of Dreams Manila”.

This trial period came to an end August 3 when President Rodrigo Duterte reimposed stricter quarantine measures in Metro Manila.

Melco reported rolling chip volume of Php7.3 billion (US$149.8 million) in Q2 compared with Php98.8 billion (US$2.03 billion) in the same period in 2019, with rolling chip win rate dropping from 5.21 per cent to 3.38 per cent.

Mass market table games dropped to Php400 million (US$8.2 million) from Php10 billion (US$205.2 million) in 2019, with hold falling from 30.4 per cent to 24.3 per cent. Gaming machine numbers fell from Php49 billion (US$1.0 billion) in the second quarter of 2019 to just Php1.5 billion (US$30.8 million).