Melco International Development Ltd, the majority shareholder of Macau concessionaire Melco Resorts, saw its net loss narrow to HK$1.40 billion (US$179 million) in the first six months of 2023, down from a HK$4.58 billion (US$584 million) loss a year earlier on a 116% increase in revenues.
Publishing its 1H23 financial results overnight, which saw revenues hit HK$13.04 billion (US$1.66 billion), Melco International said the significant improvement was primarily due to the relaxation of COVID-19 related restrictions in Macau in January 2023, the openings of Studio City Phase 2’s Epic Tower and indoor waterpark in April 2023, and the launch of residency concerts at Studio City in the same month.
Adjusted EBITDA of HK$3.20 billion (US$408 million) compared with Adjusted EBITDA of HK$168.2 million (US$21.4 million) in 1H22.
Melco International, which owns 51.69% of issued shares in Melco Resorts, said its Board of Directors does not recommend the payment of an interim dividend for 1H23.
“The relaxation of social-distancing measures and the reopening of borders worldwide since the beginning of this year has allowed us to see a sustained improvement in business momentum,” said Melco Group Chairman and CEO, Lawrence Ho.
“The Group was able to swiftly launch several exciting new initiatives once the markets recovered, which further reinforce our long-standing commitment to delivering exceptional world-class entertainment and hospitality offerings across all of its operating locations.
“In Macau, visitor arrivals have increased significantly since the relaxation of travel restrictions, while turnover in the Group’s premium direct VIP segments outperformed the same period in 2019. The Group’s continuous development of new attractions, including Studio City Phase 2 and Asia’s first-ever residency concert series with an incredible line-up of superstars, has contributed to gains in market share. With the majority of labour supply issues now largely resolved, the Group has the operational capacity in place to meet the growing customer demand across Macau.
“Looking ahead, with our exceptional portfolio of properties and innovative leisure and entertainment experiences, the Group is well positioned to capitalize on the opportunities created by the recovery in the global travel industry.”
Melco Resorts’ portfolio includes City of Dreams, Studio City and Altira in Macau, City of Dreams Manila in the Philippines and the recently opened City of Dreams Mediterranean in Cyprus.
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