Fourth-quarter operating revenues at global casino operator Melco Resorts & Entertainment Ltd rose 8.9 percent year-on-year, to US$1.19 billion, the U.S.-listed firm said in a Thursday press release.
The group – which runs casinos in Macau, Cyprus, one in the Philippines and soon one in Sri Lanka – said its fourth quarter loss attributable to the owners narrowed year-on-year to just under US$20.3 million, from US$205.9 million in the fourth quarter of 2023.
But in the third quarter of 2024, Melco Resorts had actually reported a profit of just under US$27.3 million.
The group’s fourth-quarter adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) were US$295.4 million, down 2.6 percent year-on-year.
Compared to third-quarter 2024, adjusted property EBITDA for the latest period was down 8.4 percent.
For full-year 2024, total operating revenues rose 22.9 percent year-on-year, to nearly US$4.64 billion
Melco Resorts booked for the 12 months a profit attributable to the owners of US$43.5 million, compared to a US$326.9-million loss in 2023.
Lawrence Ho Yau Lung, the group’s chairman and chief executive, said in prepared remarks that “2024 was a year of transition for us in Macau”.
He added: “ We invested in our business to enhance the customer experience and to build a stronger foundation for growth. The contributions from these initiatives are now evident with market share in the fourth quarter of 2024 growing month-to-month and property visitation exceeding pre-pandemic levels.”
For the quarter ending on December 31, total operating revenues at City of Dreams (pictured), the firm’s Macau flagship, were US$591.1 million, compared with US$559.8 million in the fourth quarter of 2023.
City of Dreams generated adjusted EBITDA of US$140.1 million in the fourth quarter of 2024, compared with adjusted EBITDA of US$166.2 million in the prior-year period. The group said the year-on-year decrease was “primarily a result of higher operating costs, largely due to an increase in staffing levels to enhance service quality and improve performance”.
Prior to the latest quarterly results, Melco Resorts announced on Thursday that its long-standing resident show The House of Dancing Water, would return to City of Dreams in May.
Studio City, also in Macau’s Cotai district, had total fourth-quarter operating revenues of US$342.0 million, versus US$302.5 million in the prior-year period.
The Melco Resorts majority-owned property generated adjusted EBITDA of US$81.2 million in the fourth quarter last year, versus US$77.3 million a year earlier. The improvement was “primarily a result of better performance in the mass market segment,” said the company.
Melco Resorts said that Studio City had “strategically repositioned itself to focus on the premium mass and mass segments, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024”.
City of Dreams Manila, Cyprus operations
Just before the results announcement on Thursday, Melco Resorts said it was looking at “strategic alternatives” regarding the future of its involvement in the City of Dreams Manila casino resort in the Philippine capital, which it manages in a deal with local partners.
In the fourth quarter, City of Dreams Manila operating revenues were US$133.8 million, compared with US$120.5 million in the final quarter of 2023.
The property generated adjusted EBITDA of US$56.8 million in the three months to December 31, versus US$48.8 million in the comparable period of 2023.
The year-on-year improvement was “primarily a result of better performance in rolling chip and mass market table games segments”.
In the Republic of Cyprus, where the company runs the City of Dreams Mediterranean complex and three satellite casinos, total operating revenues for the quarter to December 31 were US$59.2 million, from US$47.3 million in the prior-year quarter.
That business segment generated fourth-quarter adjusted EBITDA of US$11.8 million versus US$4.7 million a year earlier.
Melco Resorts’ total cash and bank balances as of December 31, aggregated to US$1.27 billion, including US$125.9-million of restricted cash.
Total debt, net of unamortised deferred financing costs and original issue premiums, was US$7.16 billion at the end of the fourth quarter, a reduction of approximately US$10 million compared to the total debt, net balance as of September 30.
This was “primarily as a result of the repurchases of the 6.00-percent senior notes due 2025 issued by Studio City Finance Ltd during the fourth quarter of 2024”.
The group’s available liquidity, including cash and undrawn revolving credit facilities as of December 31, was approximately US$3.35 billion.
