Melco Preserves Corporate Expansion Despite Q2 Ravished By Pandemic

Melco Resorts and Entertainment preserved its dedication to its corporate expansion plan as the gaming and hospitality operator records a second quarter result ravaged by COVID.

The group has also seen a variety of projects, including those at Studio City and City of Dreams Mediterranean, achieve extended development time frames after seeing delays affect their entire portfolio over the course of the year.

Recognising that any recovery from the disturbances of the year will depend on future changes, such as the length of travel and visa restrictions and consumer feeling and behaviour, Melco has also reaffirmed its commitment to securing one of three licenses for the construction of an integrated resort in Japan for grabs.

“Turning to Japan, I want to highlight our unwavering commitment to bring to the country the best IR the world has ever seen,” said Lawrence Ho, chairman and CEO of Melco.

“We believe our focus on the Asian premium segment, a portfolio of high quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Japan realise the vision of developing a world-leading IR with a unique, Japanese touch.”

Formulating a variety of policies to maintain liquidity and boost the company’s balance sheet during the pandemic impacts of the year, during the period Melco offloaded shares owned in Crown Resorts, and suspended its quarterly dividend plan.

Total operating revenue for the quarter plunged from 88 percent to $175.8 million (2019: $1.46 billion), due to poorer results in both gaming and non-gaming segments as a consequence of the COVID-19 pandemic, resulting in a major decrease in inbound tourism.

Operating losses stood at $370.8 million , compared to profits of $207.9 million a year ago, net losses hit $426.8 million from profits of $99.2 million in 2019 and adjusted EBITDA swung from $447.9 million to negative $156.2 million.

For the first half of the year, sales fell from $2.84 billion by 65.3 percent to $987 million, operating loss hit $520.7 million from sales of $399 million, net income swung from $221.3 million to a loss of $832.6 million and adjusted EBITDA was reported to be negative of $80.9 million from $861.5 million.

“Lastly, we are excited to see some early signs of returning to normal operations in our integrated resorts,” Ho continued.

“In mid-June, operations at Cyprus Casinos have partially resumed. In addition, commencing from July 15, 2020, certain travellers entering Guangdong from Macau were no longer subject to mandatory quarantine.

“The issuance of IVS visas was reinstated for Zhuhai residents on August 12, 2020, while the nationwide resumption of IVS visa issuance is expected to commence on September 23, 2020. We are hopeful these announcements signal the eventual resumption of the pre-COVID travel between Macau and Mainland China.

“While we are encouraged by the recent positive developments, ensuring the safety and well-being of our colleagues, customers and communities in which we operate remains our highest priority.”