Improved group-wide rolling chip revenues pushed net revenues of Melco Resorts & Entertainment Limited up 21 per cent year-on-year during the second quarter, according to a company release.
Net revenues of the company rose 17.54 per cent during the quarter to US$1.29 billion (MOP10.44 billion) up from US$1.07 billion registered in the same period in 2016. Net income attributable to the company was US$36.47 million.
Operating income rose 76 per cent in the three months from April to June 2017, reaching US$127.4 million.
The adjusted property EBITDA (earnings before interest, taxes, depreciation and amortization) reached US$329.5 million, an increase of 34 per cent.
The Nasdaq-listed company also announced net loss attributable to non-controlling interests worth US$8 million during the second quarter of the current year, mainly related to performance in Studio City and City of Dreams Manila.
In a conference call published at Seeking Alpha, Melco Resorts’ chairman and CEO, Lawrence Ho, said the company has “experienced some meaningful hold great issues in premium asset City of Dreams Macau during the quarter. However, our mass drop expanded sequentially in the second quarter of 2017 despite the quarter’s typical week seasonality”.
Total cash and bank balances amounted to US$1.5 billion as at quarter-end, while total debt reached US$3.7 billion.
Capital expenditure in the quarter was US$121.3 million, mostly related to various projects at City of Dreams, including the Morpheus hotel, noted the group.
Property breakdown
Net revenue at City of Dreams Macau for the quarter ended June 30, 2017 totalled US$644.6 million, posting a slight year-on-year increase.
Rolling chip volume totalled US$12.2 billion during the period, against US$9.9 billion a year earlier.
City of Dreams Macau, which Lawrence Ho referred to in the call as the “leading premium focus integrated resort,” is currently undergoing a phase of development (Phase 3), with opening expected to take place in less than 12 months.
Melco Resort’s chairman and CEO also said that Studio City has delivered “a strong quarter of results (…) despite the ongoing construction issues that are evident at the Lotus Bridge immigration border.”
The property’s net revenue rose nearly 44.6 per cent to US$332.1 million, up from US$183.8 million in the second quarter of 2016, with rolling chip volume totalling US$4.7 billion.
