The casino company said that mass market table games revenue drove the 5% increase.
Macau.- Melco Resorts & Entertainment announced on Tuesday its financial results for the fourth quarter and full year ended December 31, 2018. Net revenue for the fourth quarter of 2018 was US$1.39 billion, representing an increase of approximately 5% from US$1.33 million for the same period in 2017.
The company said that the increase in net revenue was primarily attributable to higher group-wide rolling chip and mass market table games gross gaming revenues, partially offset by higher commissions reported as a reduction in revenue upon the company’s adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board, adopted on January 1, 2018.
Operating income for the fourth quarter of 2018 was US$204 million, compared with operating income of US$129 million in the fourth quarter of 2017, representing an increase of 58%. Adjusted property EBITDA was US$425.2 million for the fourth quarter of 2018, higher than Q4 2017’s Adjusted property EBITDA of US$339.8 million representing an increase of 25%. The increase in Adjusted property EBITDA was mainly attributable to better performance in the group-wide rolling chip and mass market table games segments.
Moreover, Melco reported its full year results, which indicate that net revenue was US$5.2 billion, a fall from the US$5.3 billion registered in the prior year. The decrease in net revenue was primarily attributable to higher commissions reported as a reduction in revenue upon the adoption of the new standard.
Operating income for 2018 was US$626.8 million, compared with operating income of US$607.6 million for 2017, representing an increase of 3%. Adjusted property EBITDA for the year ended December 31, 2018 was US$1.47 billion, as compared to Adjusted property EBITDA of US$1.42 billion in 2017. The year-on-year improvement in Adjusted property EBITDA was mainly attributable to better group-wide performance in all gaming segments.
Lawrence Ho, Chairman and Chief Executive Officer of Melco, said: “Opening of the iconic, award-winning Morpheus, and the continued robust growth in Macau’s mass gaming market have allowed Melco to deliver record-level Property EBITDA despite the challenging macro environment.
“Lastly, Japan continues to be a core focus for us. We expect development of the next generation of integrated resorts to soon commence in this incredibly exciting, yet currently underpenetrated, tourism destination. With our focus on the Asian premium segment, high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and our commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with a unique Japanese touch.”