Melco Resorts and Entertainment Ltd reported a net loss of $251.46 million, for the quarter ended on June 30 heavily impacted by the pandemic and the restrictions imposed across mainland China and Macau.
The loss for the June 2022 quarter widened on a year-on-year basis, as MELCO had reported a net loss of $186 million during the same quarter in the previous year.
Lawrence Ho, our Chairman and Chief Executive Officer, commented, “It goes without saying that our results for the second quarter of 2022 were heavily impacted by the COVID-19 pandemic and the restrictions imposed across mainland China and Macau.”
The company’s net revenue for the quarter declined 48% on a year-on-year basis to $269 million from $566 million.
The revenue stream of the company for the June 2022 quarter primarily comprises the Casino segment contributing 78 percent, Rooms segment 9 percent, Food & Beverages segment 7 percent, and Entertainment-Retail and other segments pegged at 6 percent.
All four segments contributing to the revenue stream were down in the second quarter of 2022.
On a YoY basis Casino segment dipped 52 percent at $232 million from $479 million, whereas the room segment took a hit of 33 percent at $27 million from $40 million, Food & Beverages segment burnt 22 percent at $20 million from $25 million and Entertainment-Retail and Other segment crashed 23 percent at $17 million from $23 million.
Dent in the top-line had its own domino effect, as the operating loss of the company bubbled 63 percent on a YoY basis at $209 million from $128 million, triggering net loss for the company in the second quarter.
The Second quarter net loss equally had an impact on the earnings per share component of the quarterly results, the company reported a 37 percent spike in the loss per share at 53 cents from 39 cents.
With uncertainty surrounding around COVID-19 outbreaks and travel-related restrictions mainly imposed in Mainland China, Hong Kong and Macau, the third quarter has a significant loss in terms of the number of operational days, which is expected to make an impact on the third quarter earnings of the company.
“Uncertainty around COVID-19 outbreaks and related restrictions continue to have a material effect on Melco Resorts’ operations, financial position, and future prospects into the third quarter of 2022,” the company statement read.