Heightened border restrictions in Macau and mainland China related to Covid-19 have dealt a blow to gaming operator Melco Resorts & Entertainment Limited as its second quarter operating revenues were down by nearly half year-on-year.
The pandemic crisis is still responsible for the firm’s softer performance in the rolling chip and mass market table games segments.
Total operating revenues for Melco in the second quarter of 2022 were USD296.1 million, a decrease of approximately 48% from USD566.4 million for the comparable period in 2021.
Operating losses for the second quarter of 2022 amounted to USD209.2 million, compared with operating losses of USD128.1 million in the second quarter of 2021.
The firm’s CEO and chairman Lawrence Ho said “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.”
Meanwhile, Ho pledged that the group will align with the government’s aims for the amended gaming law.
Outside Macau, the group’s businesses in the Philippines and Cyprus have been improving, with volumes gradually recovering toward pre-Covid levels, and expecting to see further growth as more travel restrictions around Asia are lifted and travel returns to normal.
Macau has had its borders closed to international travelers since March 2020, as it adheres to Beijing’s zero-Covid strategy.
The city now only admits tourists from the mainland and of Portuguese nationality.
Studio City Phase 2 suffers delays
The completion of Studio City Phase 2 will be delayed and is only expected to open in the second quarter of 2023.
Initially, the gaming operator had expected that the property, which includes Macau’s first W Hotel, would be completed in December.
In the statement where Melco disclosed its second quarter earnings, Ho remarked that “the construction of Studio City Phase 2 is progressing well.”
“We will be monitoring the markets closely to determine the appropriate time to open and currently anticipate phasing the opening, beginning in the second quarter of 2023,” he added.
