Melco falls to US$186 million loss in 2Q21 but trajectory positive

The improvement was led by a significant increase in revenue at the company’s Macau integrated resorts, with City of Dreams up from US$105.4 million in 2Q20 and US$302.5 million in 1Q21 to US$347.6 million. Adjusted EBITDA of US$79.5 million was also back in the black.

While rolling chip volume at City of Dreams more than doubled to US$4.55 billion, mass market table games was the big mover, with table drop soaring from just US$41.4 million a year ago to US$806.8 million. Slot machine handle increased from US$82.5 million to US$494.9 million.

Likewise, Studio City saw its revenue increase from US$10.9 million in the second quarter of 2020 and US$97.9 million in Q1 to US$104.5 million, although Adjusted EBITDA showed a slight US$1.2 million loss. Rolling chip volume was up year-on-year from US$232.1 million to US$386.1 million and mass table games drop from US$20.1 million to US$319.7 million. Gaming machine handle increased five-fold to US$299.4 million.

Both Altira Macau and Mocha Clubs remained largely steady with Altira’s revenue only slightly up from 2Q20 to US$18.3 million with an Adjusted EBITDA loss of US$17.3 million and Mocha recording revenues of US$24.1 million, generating Adjusted EBITDA of US$5.6 million.

At City of Dreams Manila, closed through April and operating at 50% capacity since May, revenues increased from US$7.2 million during the same period last year to US$52.7 million, with Adjusted EBITDA of US$13.3 million.

Having reopened in mid-May, Cyprus casinos generated revenue of US$10 million compared to US$3.5 million a year ago.

Group-wide, operating revenues increased 222% year-on-year to US$566.4 million, also slightly up from US$520 million in Q1. Adjusted Property EBITDA of US$79.1 million compared with US$30.1 million in Q1 and an Adjusted EBITDA loss of US$156.3 million in 2Q20.

“We are pleased to see a progressive recovery in business levels during the second quarter of 2021 in our integrated resorts, despite the challenges that we have faced as a result of the COVID-19 pandemic and related travel restrictions,” said Melco Chairman and CEO, Lawrence Ho.

“Mass and premium mass market players have proven to be the primary drivers of the recovery this quarter and are expected to be going forward as we continue to dedicate our resources toward these segments of the market. We remain optimistic on our Macau market outlook, especially as Macau explores scenarios for more flexible travel with other cities in the Greater Bay Area.”

By Ben Blasche