Asian casino operator Melco Resorts and Entertainment Limited has reportedly followed many of its rivals in recording an overall loss for the three months to the end of June owing to the many disruptions caused by the coronavirus pandemic.
According to a report from Inside Asian Gaming, the Hong Kong-listed firm detailed a second-quarter deficit of $368.1 million as its various venues in Macau, Cyprus and the Philippines suffered through temporary coronavirus-induced closures and the loss of punters due to the introduction of various enhanced travel restrictions.
Revenue reversal:
The operator also saw its second-quarter operating revenues plummet by almost 88% year-on-year to just $180 million as its adjusted earnings before interest, tax, depreciation and amortization came in at a shortfall of $156.3 million. The source detailed that Melco Resorts and Entertainment Limited should nevertheless be safe as it ended the three-month period with some $1.2 billion in cash reserves alongside a revolving credit facility worth approximately $1.6 billion.
Rapid response:
Lawrence Ho Yau Lung serves as Chairman and Chief Executive Officer for Melco Resorts and Entertainment Limited and he reportedly declared that the second-quarter downturn had been caused by coronavirus-related closures as well as ‘subsequent travel restrictions and quarantine requirements’. The boss moreover purportedly proclaimed that his company had ‘been quick to formulate strategies to preserve liquidity and improve [its] balance sheet’ including signing a revised senior facilities agreement, suspending its quarterly dividend program and selling its interest in Australian counterpart Crown Resorts Limited.
Macau disappointment:
More than half of Melco Resorts and Entertainment Limited’s second-quarter operating revenues at $105.4 million had come from the firm’s giant City of Dreams Macau facility. However, this three-month tally for the 1,400-room venue purportedly represented a decline of nearly 87% year-on-year as its rolling chip volume, mass-market drop and slot handle all sagged to leave it with an adjusted earnings before interest, tax, depreciation and amortization deficit of $70.3 million.
Worldwide weakening:
The story was reportedly much the same in the Philippines where the firm’s City of Dreams Manila property recorded a slump in second-quarter operating revenues of over 95% year-on-year to just $7.2 million. This was purportedly joined by the operator’s five C2-branded facilities in Cyprus where associated takings plunged by over 84% to a mere $3.5 million.