Q2 total operating revenues declined -47.72% Y/Y to ~$296.11M. The company said the decrease was mainly due to COVID-19 related heightened border restrictions in Macau and mainland China which led to softer performance in the rolling chip and mass market table games segments.
“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,” said Chairman and CEO Lawrence Ho.
Lawrence Ho, however, added that businesses in the Philippines and Cyprus were improving with volumes gradually recovering toward pre-COVID levels. City of Dreams Manila was operating at 100% capacity since March 1.
Q2 revenue from Casino fell ~51.55% to $231.89M; while revenue from Rooms fell ~32.56% to $26.79M.
Net loss attributable to Melco widened to -$251.46M, compared to -$185.69M in Q2 2021.
The company generated negative Adjusted Property EBITDA of -$13.81M, compared to +$79.05M in Q2 2021.
Lawrence Ho noted that in Cyprus, the City of Dreams Mediterranean project has seen delays due to its contractors, and the company expects to open it in early Q2 2023, subject to regulatory approvals.
As of June 30, total cash and bank balances were $1.65B, including $0.4M of restricted cash.
At the end of Q2, total debt, net of unamortized deferred financing costs and original issue premiums, was $7.33B.
Melco noted that it bought back ~1.7M ADSs worth ~$8M in Q2.
The company said that uncertainty around COVID-19 outbreaks is expected to continue for at least the remainder of 2022 with travel and visa restrictions, quarantine requirements being key factors impacting 2022 performance.