Gaming operator Melco Resorts & Entertainment witnessed a substantial increase in total operating revenues during the fourth quarter of 2023, reaching $1.09 billion.
This figure marks a remarkable surge of approximately 224 percent compared to the same period in 2022 when revenues stood at $337.1 million.
The surge in total operating revenues was attributed to the improved performance across all gaming segments and non-gaming operations. This change was largely a result of the relaxation of COVID-19 related restrictions in Macau in January 2023, coupled with the opening of Studio City Phase 2.
“Macau continues to demonstrate its extraordinary growth potential and has shown resilience despite China’s uncertain macro-economic outlook. Visitations to Macau during this month’s Chinese New Year holiday period were close to 2019 levels and the number of visitors from China exceeded 2019,” President, Lawrence Ho, said in the company’s latest financial report.
Despite the significant increase in revenues, Melco Resorts reported an operating loss of $94.4 million for the fourth quarter of 2023, which is an improvement compared to an operating loss of $199.5 million in the same period of 2022.
Adjted Property EBITDA for the fourth quarter of 2023 stood at $303.4 million, a stark contrast to the negative Adjted Property EBITDA of $6.8 million recorded in the fourth quarter of 2022.
However, Melco Resorts reported a net loss attributable to the company of $156.6 million for the fourth quarter of 2023.
This is an improvement from the net loss of $251.9 million, reported for the fourth quarter of 2022. Net losses attributable to noncontrolling interests were $20.8 million and $42.1 million for the fourth quarters of 2023 and 2022, respectively.
“2023 was a year of post-pandemic recovery and the debut of our new developments, including City of Dreams Mediterranean and Studio City Phase 2. 2024 is set to be another exciting year for us as we continue to develop new ideas and strategies to bring market leading leisure and entertainment offerings to our customers,” Ho pointed out.
“City of Dreams Manila in the Philippines has continued to show solid growth with significant market share gains in mass table games and slots. City of Dreams Mediterranean in Cyprus continues to be impacted by the conflicts in the region but is starting to show some signs of recovery so far this year.”
Factors affecting earnings for the fourth quarter of 2023 included total net non-operating expenses of $117.6 million, mainly comprising interest expenses of $128.8 million, partially offset by interest income of $5.5 million.
Depreciation and amortization costs for the fourth quarter of 2023 amounted to $144.7 million, including $5.7 million related to the amortization expense for land e rights.
In addition, Melco Resorts recognized an impairment in long-lived assets of $207.6 million in Property Charges and Other during the fourth quarter of 2023.
This impairment reflects a significant decrease in the market value of Altira Macau due to changes in forecasted performance given the latest market conditions and disruptions caed by COVID-19, as well as the cessation of arrangements with gaming promoters.
As of December 31, 2023, Melco Resorts had total cash and bank balances of $1.44 billion, including $125.1 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, stood at $7.47 billion at the end of the fourth quarter of 2023.
