Melco Q1 revenue gains 4 percent on Macau mass market

Melco Resorts & Entertainment posted a 4 percent gain in Q1 revenue, driven mostly by mass market table games in Macau, though the operator posted flat revenue from its operations in Manila and said it had turned cautious on the market due to increased competition.

The Nasdaq-listed company had total revenue of $1.36 billion.  

Adjusted property EBITDA was $406.8 million compared to $401.8 million in the first quarter of 2018, representing an increase of 1 percent.

Net income attributable to Melco fell to $117.4 million, or $0.26 per ADS, from $156.6 million, or $0.32 per ADS.

“During the first quarter of 2019, Melco had another quarter of solid EBITDA delivery despite volatility experienced by the Macau VIP market,” Chairman and CEO Lawrence Ho said.

The company opened its new Morpheus hotel last year as part of a relaunch at the City of Dreams. It has also significantly upgraded VIP rooms on the second floor of the property.

At its Hollywood-themed Studio City resort it has recently launched a series of non-gaming attractions and will open a trampoline park later this year.

“In the Philippines, City of Dreams Manila delivered EBITDA growth of 3 percent year-over-year. With increased competition in and around Entertainment City, we are more cautious about 2019 and beyond,” Ho said.

At CoD Macau, rolling chip volume totaled $10.2 billion, down from $11.1 billion in the first quarter of 2018. The win rate was 3.4 percent, above 3 percent in the same period a year ago.

Mass market table games drop increased to $1.31 billion, with a lower hold percentage of 31.5 percent, compared with 32.1 percent.

Total operating revenues at City of Dreams Manila were $142.4 million compared to $142.2 million in the first quarter of 2018. Mass market table games drop decreased to$184.3 million for from $188.2 million and rolling chip volume fell to $2.3 billion versus $2.8 billion.

Ho once again stressed Japan is a core focus for the company.

“We believe Melco is in a strong position to help Japan realize a vision for an integrated resort development with a unique Japanese touch.”