Melco Resorts & Entertainment ( MLCO ) is trading around +8% on Wednesday after posting better-than-expected EPADS for Q4, although revenues fell short of analysts' estimates.
Total operating revenues fell around 30% Y/Y to US$337.1M, with COVID-19 related travel restrictions in Macau and mainland China leading to softer performance in the rolling chip and mass market table games segments.
Total operating revenues at City of Dreams dropped to US$139.2M, compared with US$244.8M in Q4 2021. Rolling chip volume fell from US$3.12B to US$850.4M.
Operating loss also widened to US$199.5M for Q4 from US$104.4 million in the year-ago quarter.
CEO Lawrence Ho said: "Our results for Q4 of 2022 continued to be impacted by the travel restrictions imposed across mainland China and Macau. However, we are encouraged by the increased visitation and volume that we have seen since the travel restrictions between mainland China and Macau were relaxed on January 8, 2023. Our recent performance reinforces our belief in the return of pent-up demand and our view that Macau will continue to develop as a leading international destination for entertainment and leisure."
Melco noted gaming volumes in the Philippines have reached close to pre-pandemic levels, and volumes in Cyprus have exceeded pre-pandemic levels. The firm expects continued growth in both markets as international travel normalizes.
The CEO added: "In respect to our development projects, we expect Studio City Phase 2 to open in the second quarter of 2023. The first stage of opening is expected to include one of our hotel towers and the indoor water park, which is expected to be the largest of its kind in Asia. The second phase of opening is expected to be in the third quarter."
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Melco on the rise even as Q4 revenues fall below estimates