Melco Resorts & Entertainment Limited reported a net loss of US$156.6 million for the three months to 31 December 2023, narrowed from a US$251.9 million loss a year earlier but significantly widened from a US$16.3 million loss in the September quarter on higher expenses.
The widened quarter-on-quarter loss came despite rising revenues in Melco’s core market of Macau, with group-wide operating revenues climbing 224% year-on-year and 7% quarter-on-quarter to US$1.09 billion. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of COVID-19 related restrictions in Macau in January 2023, and the opening of Studio City Phase 2, Melco said.
Adjusted EBITDA of US$303.4 million reversed a US$6.8 million Adjusted EBITDA loss in 4Q22 and 8% higher than the US$280.6 million reported in Q3.
In Macau, City of Dreams led the way for Melco in 4Q23, with GGR up 10% quarter-on-quarter to US$618 million on improvements across all gaming segments: VIP GGR rose by 21% to US$133 million, mass GGR by 8% to US$455 million and slots GGR by 3% to US$30 million, while the property’s Adjusted EBITDA grew by 8% to US$166 million.
At Studio City, total GGR was 15% higher sequentially to US$295 million, despite a 17% decline in VIP GGR to US$11 million. Mass GGR jumped by 17% to US$260 million and slots GGR by 15% to US$25 million with Adjusted EBITDA also rising by 14% to US$77 million.
Altira Macau broke even on an Adjusted EBITDA basis on GGR of US$38 million, up 29%.
City of Dreams Manila faced a more challenging quarter, with total GGR falling by 5% quarter-on-quarter to US$131 million. VIP GGR was down by 31% to US$17 million and mass GGR by 9% to US$58 million, although slots GGR grew by 13% to US$57 million.
And at City of Dreams Mediterranean in Cyprus, the impact of the conflict in Gaza was heavily felt with Adjusted EBITDA down 5% to US$5 million on total GGR of US$44 million.
Melco Chairman and CEO Lawrence Ho said, “Macau continues to demonstrate its extraordinary growth potential and has shown resilience despite China’s uncertain macro-economic outlook. Visitations to Macau during this month’s Chinese New Year holiday period were close to 2019 levels and the number of visitors from China exceeded 2019.
“2023 was a year of post-pandemic recovery and the debut of our new developments, including City of Dreams Mediterranean and Studio City Phase 2. 2024 is set to be another exciting year for us as we continue to develop new ideas and strategies to bring market leading leisure and entertainment offerings to our customers.
“As part of our initiatives to ensure Melco is leading the market in all areas of our business, we are making changes to management in Macau and bolstering the leadership team. We expect these changes will strengthen us as a team to secure a stronger and more competitive future.
“City of Dreams Manila in the Philippines has continued to show solid growth with significant market share gains in mass table games and slots. City of Dreams Mediterranean in Cyprus continues to be impacted by the conflicts in the region but is starting to show some signs of recovery so far this year.”
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