Melco Resorts & Entertainment suffered a net loss of $364 million in Q1 2020, compared to the $120.1 million of net income the previous year. The drop can be attributed to the closure of venues in Macau, Manila and Cyprus, as well as border and travel restrictions between Macau and China.
The group’s GGR went down by 40%, gaining $964 million. Adjusted property EBITDA fell by 82% to $75 million, while normalized EBITDA stands at $12 million.
Operating revenues for the City of Dreams Macau fell by 34.4% to $467.7 million; adjusted EBITDA went to $61.0 million (from $228.6 million in Q1 2019). Studio City revenue dropped 58% to $136.6 million, with adjusted EBITDA standing at $9.4 million. And revenue in City of Dreams Manila fell 22.5% to $110.3 million, and adjusted EBITDA fell by 51.1% to $29.6 million.
Rolling chip volume experienced a fall in all the venues as well, but a higher win rate somewhat elevated the situation. The drop in revenue also includes table drops and slot machines. With the announcement of worldwide pandemic lockdowns, the Melco group, like many other brands, suffered extended losses in many of the operational fields.
The group has taken action to preserve liquidity, recognising it as a suitable course of action during the current situation. Chairman and CEO Lawrence Ho remains somewhat optimistic, saying, “Melco continues to manage its balance sheet in a prudent manner. As of 31 March 2020, we had cash and cash equivalents of over US$1.2 billion.”