Melco Resorts rebounds from loss with $15.2 million first quarter net income

Melco Resorts and Entertainment has made a turnaround in its financial performance for the first quarter of 2024 with a net income $15.2 million, a significant improvement from the net loss of $156.6 million recorded in the fourth quarter of 2023.

Total operating revenues for the quarter reached $1.11 billion, marking a 55 percent year-on-year increase, Macau Business reported. This figure also showed a slight uptick from the $1.09 billion reported in the previous three-month period. However, the company said it witnessed a $4.6 million decrease in the first quarter's Adjusted Property EBITDA compared with the three-month period ending in December 2023.

“We have had a shift in management, restructured our sales force, knocked down walls, started reconfiguring our gaming areas, and opened several new retail outlets at Studio City,” Lawrence Ho, Chairman and Chief Executive Officer of Melco, was quoted as saying in the report.

On the financing front, the company disclosed that it repaid $250 million in debt, raised $750 million in bonds, and extended the maturity of its $1.9 billion revolving credit facility. This move was aimed at reducing refinancing risk in 2025, as stated by the CEO.

Additionally, Lawrence Ho attributed the improving results in March and April to the marketing initiatives implemented and the new business brought in after management changes in late February.

Melco made significant changes to its leadership team in February, announcing three new appointments and the resignation of its Chief Operating Officer, David Sisk. Alidad Tash returned to assume the role of Executive Vice President of Analytics and Gaming Operations for Macau. Stefan Bollhalder joined as Vice President of Hotels and Food & Beverage for City of Dreams Macau while Linda Switzer assumed the role of Vice President of Retail. 

Melco Resorts & Entertainment operates casino resorts in Macau, the Philippines, and Cyprus. The majority of its revenue comes from Macau, where properties City of Dreams, Altira Macau, Studio City, and others collectively accounted for 85 percent of the group's total operating revenues.

City of Dreams Manila, Melco's property in the Philippines, reported operating revenues of $110.7 million for the first three months of 2024, slightly below the $120.5 million figure from the fourth quarter. In Cyprus, where the company operates City of Dreams Mediterranean and three satellite casinos, operating revenues amounted to $52.4 million, showing improvement from the $47.3 million recorded in the previous year's fourth quarter.