Melco Resorts & Entertainment Chairman and CEO Lawrence Ho has introduced a new marketing strategy for the company's Macau integrated resort to improve its fortunes in the first quarter of 2024, increasing total operating revenue. He pointed out that the amount increased by 55.3% from the same period last year to US$1.11 billion.
The first quarter results also improved slightly from the US$1.09 billion in operating revenue reported in Q4 2023, with gaming revenue up 52.5% year over year to US$913 million and non-gaming revenue of US$69.5 million. % increase to USD 199 million.
Adjusted real estate EBITDA was $298.8 million, an increase of 56.6% year over year, but a decrease of 1.5% sequentially. Meanwhile, net income attributable to Melco Resorts & Entertainment was USD 15.2 million, reversing significant losses in both Q1 2023 and Q4 2023.
In comments accompanying Melco's earnings announcement, Mr. Ho said: “Our improved performance in March and April reflects the marketing efforts we have undertaken and the new business we have generated since the leadership change in late February, and we are confident that we will be able to continue to serve our customers. We remain focused on delivering the best premium experience in Macau and leading the market in all areas of our business.
“We are very optimistic about the continued growth of gaming, entertainment and leisure in Macau and look forward to maintaining our leadership position with our outstanding product portfolio.”
Ho also said that 2024 has been “an eventful year so far,” adding, “We've changed management, reorganized our sales force, started knocking down walls and reconfiguring our gaming areas, and looking forward to 2024. We have opened several new retail stores in the Studio City – Just to name a few of the efforts that have been made. ”
By property, City of Dreams Macau generated gross gaming revenue (GGR) of USD 625 million in Q1 2024, an increase of 57% year-on-year and 1% sequentially, of which 471 million USD was due to mass gaming table. Adjusted real estate EBITDA amounted to USD 154 million.
At Studio City, GGR increased 117% year over year and 8% sequentially to US$318 million, with adjusted real estate EBITDA of US$88 million. Altira Macau, on the other hand, became profitable with GGR of USD 37 million and adjusted EBITDA of USD 1 million. .
City of Dreams Manila was more subdued, with total GGR down 12% YoY to USD 126 million and adjusted EBITDA down 38% to USD 38 million.
However, there was positive momentum at City of Dreams Mediterranean in Cyprus, with GGR improving by 90% year-on-year and 23% sequentially to USD 54 million. Adjusted EBITDA was also up to USD 11 million.
Melco announced that it repaid a loan of US$150 million during the quarter, reducing total debt to US$7.32 billion.
