Macau gaming operator Melco Resorts’ parent company Melco International Development has reported a year-on-year increase of 116.4% in net revenue for the first six months of the year, reaching HKD13.04 billion (US $1.66 billion).
The increase in net revenues was primarily attributed to key factors that were outlined in a stock filing to the Hong Kong exchange. These include the relaxation of Covid restrictions in Macau, the opening of Studio City Phase 2’s Epic Tower and indoor waterpark, as well as the launch of residency concerts at Studio City.
Adjusted EBITDA reported for the first half of 2023 was HKD 3.20 billion ($408 million), a substantial increase compared to the HKD 168.2 million ($21.46 million) reported in the same period last year.
Despite the increase in net revenue, the group reported a net loss of HKD1.4 billion ($178.6 million) for the first half. However, it improved as compared to last year’s HKD 4.58 billion ($584 million) loss.
Macau Business quoted Lawrence Ho, group chairman and chief executive officer of Melco International, as saying: “In Macau, visitor arrivals have increased significantly since the relaxation of travel restrictions, while turnover in the group’s premium direct VIP segments outperformed the same period in 2019.”
Ho added that the group has addressed the majority of labor supply issues and established the necessary operational capacity to meet the rising customer demand across Macau.
“The group was able to swiftly launch several exciting new initiatives once the markets recovered. With most labor supply issues now largely resolved, the group has the operational capacity in place to meet the growing customer demand across Macau,” he said.
Melco is set to launch W Macau at Studio City this month, adding approximately 560 hotel rooms to its portfolio. Additionally, the group will also introduce a range of non-gaming offerings, including the indoor waterpark at Studio City, TheArsenale V5 Flagship Store, Mr Doodle’s first exhibition in Macau, the Black Pearl Diamond Restaurants Gastronomic series, and the Melco Residency Concert series.