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Despite the ongoing obstacles posed by the COVID-19 epidemic, Melco Resorts and Entertainment reported a further improvement in business levels in the second quarter of 2021.
This comes as the company announced its financial results for the second quarter of the year, with operational revenue of $566.4 million, up 222 percent from $175.9 million in 2020.
This, according to the company, is due to improved performance in all gaming segments and non-gaming businesses as a result of an increase in inbound tourists to Macau year over year.
The operating loss for the quarter was $128.1 million, down from $370.8 million a year ago, as adjusted property EBITDA came in at $79.1 million, up from a loss of $156.3 million.
Travel bans, restrictions, and quarantine requirements imposed by the governments of Macau, Hong Kong, and China continue to affect operations in Macau, with the City of Dreams Manila being closed from March 29 to April 30, 2021.
The Philippines began operations on May 1, 2021, with a 50 percent gaming capacity and hotels that could only accept guests on a free basis.
As part of the government’s additional quarantine measures, gaming capacity has been reduced to 40 percent as of July 26, 2021, while hotels have been authorised to admit Philippine-resident paying visitors under a “staycation” programme.
Due to a government-imposed shutdown, casinos in Cyprus were closed from January 1 to May 16, 2021, with operations reopening on May 17, 2021, for the first time this year, with limited capacities that have gradually expanded. The Mediterranean extension of City of Dreams is still in the works, with an opening date set for summer 2022.
The Macau government has also given the group an extension to its current Studio City phase 2 development from May 31, 2022 to December 27, 2022.
Melco’s chairman and CEO, Lawrence Ho, said: “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.
“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.”
Pursuing market prospects
Melco also reiterates its commitment to “bringing a world-leading integrated resort” to Japan, and says it will continue to pursue prospects in the market, where it is “actively engaged” with partners.
“COVID continues to present challenges for the country in terms of process timing and travel, but the development of the integrated resorts industry in Japan has continued to move forward,” Ho added.
“We remain convinced that Japan represents the best potential new gaming market globally and that the quality of our assets and our focus on the premium segment is a great fit for the country’s tourism development.
“We remain patient and continue to maintain our disciplined approach with respect to all development activities, including in Japan.”