Melco Resorts and Entertainment has unveiled its unaudited financial results for the second quarter of 2024, revealing significant strides in revenue and operational performance. The company’s financial performance reflects a remarkable recovery in the hospitality and gaming sectors, driven by a resurgence in tourism and strategic business enhancements.

Melco Resorts and Entertainment: Q2 2024 Financial Results Showcase Robust Growth

Total Operating Revenue Surges

For Q2 2024, Melco Resorts and Entertainment reported a substantial increase in total operating revenue, reaching $1.16 billion. This represents a 22% year-on-year growth, underscoring the company’s successful recovery from previous downturns. The uptick in revenue is attributed to a notable resurgence in both the mass-market segment and non-gaming operations.

Key Drivers of Revenue Growth

The growth trajectory of Melco Resorts is primarily fueled by the following factors:

• Recovery in Inbound Tourism: The resurgence of tourism in Macau has played a pivotal role in enhancing Melco’s revenue streams. Total visitor arrivals for the first half of 2024 surged by 43% year-on-year, reaching 82% of pre-pandemic levels from the first half of 2019.
• Diverse Revenue Streams: Improvements in mass-market gaming and non-gaming segments, including dining and entertainment, have contributed significantly to the revenue increase. This diversified approach has mitigated reliance on a single revenue source, enhancing overall financial stability.

Segment-Wise Performance

City of Dreams and Other Properties

Operating revenue from major properties, including City of Dreams, Mocha and Other, Studio City, and City of Dreams Mediterranean and Other, exhibited notable increases during the quarter. This growth reflects the successful execution of strategic initiatives and enhanced guest experiences.

Challenges and Consistency

• City of Dreams Manila: Despite overall positive performance, City of Dreams Manila experienced a revenue decrease during the period. This decline is attributed to various market dynamics and competitive pressures specific to the Philippines.
• Altira Macau: Altira Macau maintained consistent operating revenue, reporting $29.3 million for both the second quarter of this year and last year. This stability reflects steady market conditions and operational resilience.

Operating Income and EBITDA

Melco’s operating income for Q2 2024 reached $123.7 million, marking a significant increase from $64.3 million in the same period last year. This improvement highlights the effectiveness of the company’s strategic and operational adjustments.

Adjusted property EBITDA rose by 13.3%, totaling $302.8 million. This increase is indicative of Melco’s operational efficiency and effective cost management strategies, contributing to enhanced profitability.

Strategic Initiatives and Future Outlook

CEO Lawrence Ho’s Insights

Melco’s Chairman and CEO, Lawrence Ho, emphasized the company’s ongoing strategic initiatives aimed at expanding revenue and profitability. Key points from his statement include:

• Investment in People and Properties: Melco is committed to investing in its workforce and enhancing its properties to deliver a premium experience for guests. This focus on quality and customer satisfaction is expected to drive future growth.
• Quarterly and Yearly Growth: Ho noted consistent growth in gaming gross revenue (GGR) both quarter-to-quarter and year-over-year. The company’s strategic efforts are focused on further expanding its market position and sustaining growth momentum.

Regional Performance Highlights

• City of Dreams Manila: Despite a challenging market environment, City of Dreams Manila has continued to deliver solid performance, reflecting the brand’s resilience and adaptability.
• City of Dreams Mediterranean and Cyprus: The performance of City of Dreams Mediterranean and satellite casinos in Cyprus has been notably strong, with luck-adjusted EBITDA growing by more than 30% quarter-to-quarter. This growth underscores the successful integration of strategic initiatives and operational excellence.

Conclusion: The Results

Melco Resorts and Entertainment’s Q2 2024 financial results reflect a robust recovery and strategic success. The company’s ability to achieve substantial revenue growth, enhance profitability, and invest in its operations positions it favorably for continued success. With a clear focus on expanding its market presence and delivering exceptional guest experiences, Melco is well-positioned for future growth in the competitive global hospitality and gaming sectors.

FAQs About Melco Resorts and Entertainment’s Q2 2024 Financial Results

1. What were Melco Resorts and Entertainment’s total operating revenues for Q2 2024?

Melco Resorts and Entertainment reported total operating revenues of $1.16 billion for the second quarter of 2024, reflecting a 22% year-on-year increase.

2. How did the company’s revenue in the mass-market and non-gaming segments perform?

Revenue in the mass-market segment and non-gaming operations saw significant improvements, contributing to the overall growth in total operating revenue.

3. What impact did the recovery in tourism have on Melco’s financial performance?

The recovery in inbound tourism in Macau had a positive impact, with total visitor arrivals increasing by 43% year-on-year and reaching 82% of the pre-pandemic levels from the first half of 2019.

4. Which properties saw an increase in operating revenue during Q2 2024?

Operating revenue increased for City of Dreams, Mocha and Other, Studio City, and City of Dreams Mediterranean and Other. However, City of Dreams Manila experienced a decrease in revenue.

5. What was Melco’s operating income and adjusted property EBITDA for Q2 2024?

Melco’s operating income for Q2 2024 was $123.7 million, up from $64.3 million in the same period last year. Adjusted property EBITDA rose by 13.3% to $302.8 million.

6. What strategic initiatives did Melco Resorts and Entertainment focus on during Q2 2024?

The company focused on investing in its workforce and enhancing its properties to provide a premium experience for guests, aiming to drive further revenue growth and market expansion.

7. How did the performance of City of Dreams Manila and City of Dreams Mediterranean compare?

City of Dreams Manila showed a revenue decrease, while City of Dreams Mediterranean and the Cyprus satellite casinos exhibited strong performance, with luck-adjusted EBITDA growing by more than 30% quarter-to-quarter.

8. What are the expectations for Melco Resorts and Entertainment’s market position and growth?

Melco aims to continue expanding its market position and driving growth through strategic investments and operational excellence, with a focus on enhancing guest experiences and leveraging market opportunities.