In the second quarter of 2024, Melco Resorts & Entertainment demonstrated impressive growth, reflecting a robust recovery from the COVID-19 pandemic. The company’s total operating revenues surged to US$1.16 billion, marking a 22% increase year-on-year and a 4.5% rise from the previous quarter. This positive performance highlights the resurgence of the gaming and tourism sectors in Macau and beyond.
Gaming Revenues
Melco’s gaming revenues for 2Q24 reached US$943 million, a significant 22.7% increase compared to the same quarter last year and a 3.3% rise from the prior quarter. This growth underscores the recovery in Macau’s mass market segment and an uptick in overall tourism. The resurgence in gaming activity, particularly in mass market segments, reflects broader trends of increased consumer confidence and spending in the region.
Non-Gaming Revenues
The company’s non-gaming revenues also saw a substantial boost, climbing to US$217 million, which represents a 20.7% increase year-on-year. This growth indicates Melco’s successful diversification strategy, emphasizing its efforts to enhance revenue streams beyond traditional gaming operations. The rise in non-gaming revenues aligns with broader industry trends where integrated resort operators are focusing more on experiential offerings to attract a diverse clientele.
Adjusted Property EBITDA
Melco reported an Adjusted Property EBITDA of US$302.8 million for 2Q24. This figure represents a 13.3% increase from the same period last year and a 1.3% sequential rise. The improvement in EBITDA highlights the company’s effective cost management and operational efficiency, contributing to enhanced profitability despite the challenges faced in the previous years.
Net Income
The net income attributable to Melco reached US$21.4 million in 2Q24, marking a notable recovery from a net loss of US$23.4 million reported in the second quarter of 2023. This turnaround underscores the company’s successful strategies in revitalizing its business operations and improving its financial health.
City of Dreams Macau
City of Dreams Macau saw a year-on-year increase in its Gaming Gross Revenue (GGR), reaching US$643 million in 2Q24. This performance includes US$471 million from mass table games, US$144 million from VIP table games, and US$28 million from slots. The property’s Adjusted EBITDA was US$165 million, up 2% from the previous year and 8% sequentially. These figures reflect the stability and ongoing growth of this key property.
Studio City
Studio City reported a substantial 58% year-on-year increase in total GGR, reaching US$339 million. The mass gaming segment contributed significantly with US$287 million. Despite a 10% sequential decline in Adjusted EBITDA to US$79 million, the property’s year-on-year growth of 93% highlights a strong recovery, although short-term fluctuations are noted.
City of Dreams Manila
City of Dreams Manila experienced a slight decline in total GGR, down 2% both year-on-year and quarter-on-quarter, to US$123 million. The property’s Adjusted EBITDA was US$40 million, with GGR breakdown including US$57 million from mass gaming, US$48 million from slots, and US$18 million from VIP gaming. These figures reflect the overall stability of the property amidst a challenging market environment.
City of Dreams Mediterranean (Cyprus)
In Cyprus, City of Dreams Mediterranean reported a total GGR of US$54 million, unchanged from the previous quarter. The property achieved an Adjusted EBITDA of US$13 million, reflecting a significant 90% year-on-year increase and a 24% rise from the prior quarter. The absence of VIP revenue and a balanced GGR between mass gaming and slots underscore the property’s steady performance and effective market positioning.
Investments and Enhancements
Melco Resorts & Entertainment is actively investing in its properties and workforce to enhance guest experiences. Chairman and CEO Lawrence Ho emphasized the company’s commitment to providing premium experiences and driving growth through strategic investments. These initiatives are crucial for maintaining a competitive edge and catering to the evolving preferences of patrons.
Market Position and Expansion
The company’s focus on expanding its market position is evident from the solid performance of its properties across different regions. The continued success of City of Dreams Manila and City of Dreams Mediterranean reflects the effectiveness of Melco’s strategic efforts to capture and sustain market share. The company’s approach to growth through enhanced guest experiences and diversified offerings positions it well for future success.
Future Growth Prospects
Melco Resorts & Entertainment is poised to continue its growth trajectory, supported by its strategic investments and focus on operational excellence. The positive trends in revenue and profitability, coupled with ongoing enhancements to its properties, suggest a promising outlook for the company in the competitive gaming and hospitality markets.
Melco Resorts & Entertainment’s performance in the second quarter of 2024 demonstrates a robust recovery and growth following the challenges of the COVID-19 pandemic. With significant increases in both gaming and non-gaming revenues, as well as improved profitability metrics, the company is well-positioned for continued success. The strategic investments in properties and ongoing focus on enhancing guest experiences underscore Melco’s commitment to driving future growth and expanding its market presence.