Melco has reported its financial results for the first quarter of 2024. In total, the operator generated $1.11bn, up 55% from the $716.5m reported last year. Of this, $913.3m was made from casino operations, with the remainder made from rooms, entertainment, and food and beverage revenue.
Operating income was up significantly, totaling $125.4m compared to last year’s $0.4m. Adjusted EBITDA also more than doubled, making $298.8m compared to $190.8m in Q1 2023.
The operator also reported a net income in Q1 2024, making $15.2m. This is in comparison to the loss reported last year, which totaled $81.3m.
City of Dreams
The City of Dreams casino in Cotai, Macau, made $550.9m in Q1 2024, up $192.6m from this time last year with a growth rate of 53.8%. The property’s adjusted EBITDA came to $153.6m, up 61.9% year-on-year, with profits from non-gaming operations up $22.3m to $80.6m.
This growth was possible despite no increase in table games and only three additional gaming machines. However, table game revenue grew significantly, with the average table win per unit per day growing from $9,635 to $15,266.
Altira Macau
Total revenue from Altira Macau in Q1 2024 came to $34.2m, up 43.7% year-on-year. Adjusted EBITDA was reported at $1.4m compared to the $2m loss reported last year, with profits from non-gaming operations up 35.1% for a total of $5m.
The property lost an average of three table games and 22 gaming machines year-on-year, which may in part explain how table game revenue per unit per day almost doubled from $4,688 to $8,725.
Mocha and other
This segment made $31.9m in Q1 2024, up 6.3% - less than other Melco operations, but an increase nonetheless. Adjusted EBITDA fell marginally, down $0.2m to $7.5m, while profits from non-gaming operations grew 1.7% to $527.6m.
Studio City
Revenue from Studio City grew a sizeable 133.1%, making $331.4m to last year's $142.2m. Adjusted EBITDA was also up by three figures, growing 326.7% to $87.9m. Non-gaming revenue totaled $70.7m, up $45.6m year-on-year.
Studio City also saw a 20% year-on-year increase in hotel room occupancy, from 76% to 96%. This was despite the average daily rate of rooms at the property growing by $52 to $159.
City of Dreams Manila
Unlike Melco’s other properties so far, City of Dreams Manila saw its quarterly revenue decline year-on-year, down 17% year-on-year for $110.7m. Adjusted EBITDA was also down, falling $23.1m, or 37.9%, to $37.8m. Despite this, non-gaming profits were up, though only by $0.2m.
City of Dreams Mediterranean and other
This segment saw revenue almost double in Q1 2024, making $52.4m to last year’s $27.8m. Adjusted EBITDA was up 20.7% to $10.5m, while non-gaming profits grew substantially from $0.2m in Q1 2023 to $11.8m in Q1 2024.
Developing non-gaming entertainment at casinos in Macau and Asia have been a significant talking point among those working in the region, following the impact of Covid-19 and the need to diversify offerings.
In our CEO Special we spoke with MGM China COO & President Hubert Wang, who echoed this sentiment. He said: “With more comprehensive diversified non-gaming offerings, Macau will become more attractive than ever as a leisure destination.”
