Melco Resorts & Entertainment Limited fell to a net loss of US$368.1 million in the three months to 30 June 2020 as COVID-19 impacted its operations in Macau, the Philippines and Cyprus.
The 2Q20 results, released overnight, included US$180 million in operating revenues, down from US$1.46 billion in the second quarter of 2019 and resulting in an Adjusted EBITDA loss of US$156.3 million.
“COVID-19 and the subsequent travel restrictions and quarantine requirements have significantly impacted our second quarter operating and financial performance,” said Melco Chairman and CEO, Lawrence Ho.
“To help mitigate the impact from COVID-19, we have been quick to formulate strategies to preserve liquidity and improve the Company’s balance sheet. In April, we bolstered our balance sheet by entering into a new senior facilities agreement and by selling the shares we held in Crown Resorts Limited. In May, the board suspended the company’s quarterly dividend program.”
More than half of Melco’s operating revenues for the quarter were generated at City of Dreams Macau, which reported revenue of US$105.4 million versus US$790.8 million in 2Q19, and an Adjusted EBITDA loss of US$70.3 million. Rolling chip volume at CoD fell 86.4% to US$2.03 billion – with the segment aided by a high 6.13% win rate – while mass table drop declined from US$1.37 billion to just US$41.4 million and slot handle from US$1.04 billion to US$82.5 million.
Studio City reported operating revenues of US$10.9 million and an Adjusted EBITDA loss of US$42.3 million. Rolling chip volume was US$230 million, mass table drop US$20.1 million and slot handle US$67.6 million.
Altira Macau’s operating revenues fell from US$104.3 million in 2Q19 to US$17 million, with rolling chip volume of US$370 million, mass table drop of US$14.5 million and slot handle of US$43.4 million.
In Cyprus, where Melco operates a temporary casino while it develops City of Dreams Mediterranean, as well as operating four satellite casinos, operating revenues were US$3.5 million compared to US$22.1 million in the second quarter of 2019. There was no rolling chip volume recorded, while table games drop was US$4.1 million.
City of Dreams Manila released its 2Q20 results last week, where operating revenues were US$7.2 million, compared to US$176.1 million in 2Q19.
“Melco continues to manage its balance sheet in a prudent manner,” said Ho.
“As of 30 June 2020, we had cash on hand of approximately US$1.2 billion and undrawn revolver facilities of approximately US$1.6 billion. Proforma for the issuance of the new senior notes and the Studio City private share placements (but excluding Melco’s subscription therein of approximately US$280 million), Melco’s cash on hand as of 30 June 2020 was approximately US$2.0 billion, while the undrawn revolver facilities in Macau and Manila were approximately US$2.0 billion.”
