Melco Post Increased Revenues As Macau & Other Properties Improve In Q2 Results

Lawrence Ho

Melco Resorts & Entertainment has reported improved financial results for the second quarter of 2024, the company’s revenue surged to nearly $1.16 billion, a 22.33% year-over-year increase, driven by strong performance in both the mass market and non-gaming segments.

Melco’s Macau properties were the primary contributors to the company’s impressive Q2 2024 results. The group’s flagship property, City of Dreams Macau, recorded a revenue of $576.4 million, an increase of over $70 million compared to the same period in the previous year.

The City of Dreams Macau property recorded a significant increase in adjusted property EBITDA, rising to $165.1 million, up by nearly $4 million year-over-year.

While Altira Macau’s revenues remained relatively flat at $29.3 million, the property saw a strong adjusted EBITDA drop to $2 million, compared to $4.3 million in the same period of the previous year.

Studio City, another key property in Melco’s Macau portfolio, recorded a revenue of $352.3 million, an increase from the $236 million reported in Q2 2023. The property’s adjusted property EBITDA also rose strongly to $79.2 million, up from $41.1 million in the same period last year.

In the Philippines, City of Dreams Manila recorded revenues of $109 million in Q2 2024, a slight decrease from the $116.4 million reported in the same period of the previous year. The property’s adjusted property EBITDA fell to $40.5 million, down by $6.5 million year-over-year, which the group attributed to softer performance in the mass market table games segment.

In Cyprus, the newly opened City of Dreams Mediterranean and its three satellite casinos generated $58.7 million in revenue, a stark rise from the $30.9 million reported in the same period of the previous year. The property’s adjusted EBITDA also grew by nearly 90% year-over-year, reaching $13.1 million. This impressive performance was primarily driven by the better performance in the mass market segment and non-gaming operations following the opening of City of Dreams Mediterranean in mid-2023.

Melco’s revenue growth was accompanied by an improvement in profitability and operational efficiency. The company recorded a profit of $21.39 million in Q2 2024, reversing a loss of $23.44 million registered in the same period of 2023.

The group’s adjusted property EBITDA, a key indicator of operational performance, totalled $302.8 million during the period, up from $267.3 million in Q2 2023. This strong growth in adjusted property EBITDA demonstrates Melco’s ability to effectively manage its expenses and drive profitability across its diverse portfolio of properties.

While Melco’s overall casino revenues rose by 22.7% year-over-year, the company’s operating expenses for the casino segment also increased, reaching $632.47 million. This suggests that Melco has been able to maintain a balance between revenue growth and cost control, ensuring that its profitability improvements are sustainable in the long run.

Melco’s Chairman and CEO, Lawrence Ho, expressed optimism about the company’s performance, highlighting the success of its strategic initiatives to expand revenue and profitability.