Melco Resorts & Entertainment has reported its unaudited financial results for Q4 and the full year ended December 31.
Total operating revenue was down 9% year-on-year, with $480.6m taken at the end of 2021, down $47.4m on 2020.
Melco attributes this downturn in revenue to softer performances in its rolling chip segment.
Yet operating loss was not as extensive in Q4, with a setback of $104.4m significantly less than $144.8m in Q4 of 2020.
What’s more, Melco generated adjusted property EBITDA of $94m in Q4 2021, a greater uptake than the $53.4m generated in the same period of 2020.
And net loss for Q4 was at $159.9m, down from losses of $199.7m in the fourth quarter of 2020.
Melco has also posted its net losses from non-controlling assets, which is at $30m for Q4 of 2021, down $5.1m on Q4 of 2020. Melco notes these losses were associated with its land-based outlets, including Studio City, City of Dreams Manila and the Cyprus Operations.
Chairman and CEO Lawrence Ho said: “Covid-related travel restrictions continued to impact our fourth quarter operating and financial performance. We have maintained strong cost discipline under these challenging times and are pleased to see improving EBITDA profitability across each of our geographies this quarter. We are confident that our customers will return in numbers once restrictions are eased.
“We are pleased to see Macau’s vaccination rate now at over 80% and, to play our part, Melco’s employee vaccination rate in Macau has reached 95%. We hope that increasing vaccination rates can facilitate an easing of travel restrictions within the Greater Bay Area.
“In Europe, the City of Dreams Mediterranean integrated resort project is on track for completion in the second half of 2022.”
“Covid-related travel restrictions continued to impact our fourth quarter operating and financial performance. We have maintained strong cost discipline under these challenging times and are pleased to see improving EBITDA profitability across each of our geographies this quarter. We are confident that our customers will return in numbers once restrictions are eased. Mr. Lawrence Ho, Melco Chairman and CEO
Macau February revenue up 6% to HK$7.76bn
Macau's February 2022 gross gaming revenue was up 6% from the same period last year.
Casino revenue totalled HK$7.76bn ($992m), a 22% increase on January, in which takings reached a meager HK$6.34bn.
Despite this significant improvement on the previous month, accumulated revenue still sits at a variance of -8% from the same period in 2021. This is a vast improvement on January's year-on-year variance, though, which slumped to -20.9% from the same period in January 2021.
Although these short-term gains are encouraging, Macau is still a far cry from its pre-Covid-19 international dominance. Last month, we spoke about Macau's struggles up against a resurgent Las Vegas and these struggles remain in place, for the most part.
But February does present budding green shoots of hope for a full Macanese recovery, particularly as the region remains locked under stringent Covid measures. Yesterday, Ho lat Seng refuted calls to end social distancing measures in Macau's current climate, dashing hopes of a significant economic recovery next month.
Landing International estimates 70% FY revenue increases
Landing International is expected to record an increase in consolidated revenue of 70% for the year ended 31 December 2021.
In addition, consolidated net loss is anticipated to decrease between 40%-60% for the year ended 2021.
Landing notes its significant profit gains and decrease in consolidated net loss is attributable to greater domestic consumption in Jeju Shinhwa World, and an increase in residential property sales activities. Furthermore, Landing International notes a decrease in operating expenses as a result of stringent cost controls, and an increase in fair value of investment properties has also contributed to an upturn in financial fortunes.
In other news, a financial watchdog is taking two Crown Resorts casinos to Australia’s Federal Court over alleged violations of anti-money laundering and counter-terrorism financing laws.
Missed a big gambling industry story in Asia? Don't worry, Gambling Insider has you covered with our Asia round-up.
