Melco Resorts and Entertainment has released its unaudited financial results for the second quarter of 2022.
Total operating revenue decreased by 48% to $296.1 million. Travel restrictions and business closures as a result of an increase in Covid cases in Macau and mainland China are to blame for this poor performance.
This result is comparable to Studio City, which reported revenue of “negative $1.9m” due to pandemic-related restrictions.
Galaxy Entertainment Group, MGM China, Wynn Macau, and SJM Holdings have all experienced this pain.
Melco generated $13.8 million in negative adjusted property EBITDA, compared to $79.1 million in positive adjusted property EBITDA.
The operating loss for the second quarter was $209.2 million, up from $128.1 million, while the net loss attributable to the company was $251.5 million, up from $185.7 million.
“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,” Melco CEO and Chairman Lawrence Ho said.
“Throughout the pandemic, ensuring the health and safety of our colleagues has been critical, and this has remained our top priority throughout the recent outbreak in Macau.”
“We greatly appreciate the Macau Government’s prompt handling and publication of the gaming law amendments in June, as well as the publication of the regulations for the new concession tender.”
The Macau Government formed a committee last month to examine and evaluate bidders for new casino licenses.
Concessionaires are expected to be chosen by the end of the year, following the extension of Macau’s current concession period from June 2022 to December 2022.
The extension was designed to account for a legal period during which future changes to Macau’s gaming law must be ratified.