Melco Resorts & Entertainment is on a recovery rebound as it records operating revenues of USD716.5 million in the first quarter, representing an increase of approximately 51% from USD474.9 million for the comparable period in 2022.
The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments primarily due to the relaxation of Covid-19 related restrictions in Macau during the quarter.
Lawrence Ho, chairman and Chief Executive Officer, commented, “we have seen a very encouraging start to the recovery in Macau during the first quarter of 2023, following the relaxation of border restrictions in early January.”
“We continued to see improving momentum into April and Golden Week in May, with mass market table games drop and mass gross gaming revenue during the Golden Week period exceeding the same period in 2019.”
In an earnings call with analysts, Ho expects the next uptick in visitation and revenues in Macau to be around summer – in July and August.
On whether the city will see a 2019 kind of visitation to Macau, Ho cites that the Macau Airport is still only doing about 30%
“But in terms of provinces that require more airplane and stuff like that, I think that’s certainly a growth area. And so far, the recovery, the first few months have been – there has been a lot of Hong Kong,” he said.
“I certainly think that Macau will hopefully get back to close to the visitation levels of the past in the next few months within this calendar year and I think, in which case, just judging from where our mass and slots and premium direct numbers are, will exceed that of 2019 sooner rather than later,” the executive added.
100% room
availability by June
The gaming operator is hoping to open its hotel rooms at full capacity, following the hurdles it has faced in fully opening up due to labor shortages.
When the group started off in the first quarter, it was working to get back to 70%-80% of its availability of the hotel rooms amid the lack of staff as it had lost a significant number of employees during the pandemic.
“I’d say 70% through the first quarter, and then […] basically back to 100% of availability by the time we get to the end of June,” said David Sisk, COO of Melco.
“It takes time, as you know, in Macau, because the [Labour Affairs Bureau] and some of the labor kind of constraints that we have in the process in terms of how you go back and you bring the waiver into the market. So that’s had a constraint on us, which impacted us too, somewhat,” he added.
