Melco Resorts & Entertainment Chairman and CEO Lawrence Ho has pointed to the implementation of new marketing initiatives at the company’s Macau integrated resorts for improved fortunes in 1Q24, which saw total operating revenues climb 55.3% year-on-year to US$1.11 billion.
The Q1 result was also slightly improved on the US$1.09 billion in operating revenues reported in 4Q23 and included a 52.5% year-on-year increase in gaming revenues to US$913 million and a 69.5% increase in non-gaming to US$199 million.
Adjusted Property EBITDA of US$298.8 million was also up 56.6% year-on-year but down 1.5% sequentially, while net income attributable to Melco Resorts & Entertainment was US$15.2 million, reversing sizeable losses in both 1Q23 and 4Q23.
In comments accompanying Melco’s results release, Ho said, “Our improving results in March and April reflect the marketing initiatives we have implemented and the new business we have generated since management changes in late February, as we continue to focus on providing our patrons with the best premium experience available in Macau and lead the market in all areas of our business.
“We are extremely optimistic about the continued growth of gaming, entertainment and leisure in Macau and expect to maintain our leadership position with our exceptional portfolio of products.”
Ho also noted that 2024 had been an “eventful year so far”, adding, “We have had a shift in management, our sales force has been restructured, we knocked down walls and started reconfiguring our gaming areas and opened several new retail outlets at Studio City – to name just a few of the initiatives taken so far.”
By property, City of Dreams Macau generated gross gaming revenue (GGR) of US$625 million in 1Q24, up 57% year-on-year and 1% sequentially, of which US$471 million was via mass gaming tables. Adjusted Property EBITDA reached US$154 million.
At Studio City, GGR climbed by 117% year-on-year and 8% sequentially to US$318 million with Adjusted Property EBITDA of US$88 million, while Altira Macau moved into profit with Adjusted EBITDA of US$1 million on GGR of US$37 million.
City of Dreams Manila was more subdued, with total GGR falling by 12% year-on-year to US$126 million and Adjusted EBITDA by 38% to US$38 million.
However, there was positive momentum at City of Dreams Mediterranean in Cyprus, where GGR improved by 90% year-on-year and 23% sequentially to US$54 million. Adjusted EBITDA was also up to US$11 million.
Melco said it paid down US$150 million in loans for the quarter, reducing total debt to US$7.32 billion.
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