Melco reports shaky performance in Macau
The casino company said that the growth has been driven by the City of Dreams Manila and Altira properties.
Philippines.- Melco Resorts & Entertainment has reported its second quarter financial results, in which an eight per cent gain in adjusted property EBITDA can be noted. The performance has been driven by the company’s City of Dreams Manila and Altira properties.
While EBITDA was US$355.5 million, up from the US$329 million registered during the same period in 2017, net income totalled US$57.3 million, also an increase from the US$36.5 million from the second quarter in 2017. Overall net revenue was down five per cent to US$1.23 billion, but if the new reporting standard is not taken into account, revenue would represent a three per cent rise.
City of Dreams Macau revenue declined from US$644.4 million in 2017 to US$577.8 in 2018, especially because of lower VIP volumes. Studio City also reported a decrease in revenue to US$314.1 million from the US$332.1 million in 2Q17, and the company says that both performances have been negatively affected by bad luck. “There’s nothing fundamentally wrong with the way we are operating, it’s pure bad luck,” CEO Lawrence Ho said.
Moreover, while City of Dreams Manila’s revenue reported a shaky performance, its adjusted EBITDA increased to US$87.3 million from the US$62.8 million in the second quarter from 2017.
The CEO also talked about the company’s plans for Japan and said that it continues to be a core focus for Melco. “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.”
