Melco Resorts & Entertainment CEO Lawrence Ho said his company is still committed to building a world-beating IR in Japan and is in a strong financial position, despite swinging to a loss in Q2 due to Covid-19.
The group reported an 88 percent drop in operating revenues for Q2 to just $0.18 billion, while it posted a loss of $370.8 million, compared with operating income of US$208.0 million in the second quarter of 2019. Melco attributed the weakness to a drop in all gaming segments, with its properties in Macau suffering from border restrictions and its operations in Manila still closed.
However, Ho outlined Melco’s financial strength after selling its shares in Crown Resorts and issuing $850 million new senior notes. He also stressed “unwavering” commitment to Japan after some leading competitors, such as Wynn Resorts and Las Vegas Sands pulled out of the game.
“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing a world-leading IR with a unique, Japanese touch.”
Melco’s City of Dreams Manila reported revenue of US$7.2 million, compared to US$176.1 million. The property has been closed throughout the second quarter apart from some limited trial run operations to test safety and procedures.
In Cyprus, Melco’s casinos reopened in mid-June posted operating revenue of US$3.5 million, compared to US$22.1 million in the second quarter of 2019. Cyprus Casinos generated negative adjusted EBITDA of US$6.0 million in the second quarter of 2020, compared with adjusted EBITDA of US$5.8 million in the second quarter of 2019.