Melco Report Significant Losses in Q4 2022 Due to COVID-19 Travel Restrictions
Melco Resorts & Entertainment Limited, a developer, owner, and operator of integrated resort facilities in Asia and Europe, reported its unaudited financial results for the fourth quarter and full year ended December 31, 2022. However, it revealed that it faced significant losses in the quarter due to COVID-19 travel restrictions in mainland China and Macau, which led to a softer performance in the rolling chip and mass market table games segments.
Total operating revenues for the fourth quarter of 2022 decreased by about 30% from US$480.6 million for the comparable period in 2021. The operating loss for the quarter was US$199.5 million, compared with an operating loss of US$104.4 million in the fourth quarter of 2021.
Melco generated negative Adjusted Property EBITDA of US$6.8 million in the fourth quarter of 2022, compared with Adjusted Property EBITDA of US$94.0 million in the fourth quarter of 2021. As a result, the net loss attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2022 was US$251.9 million, or US$0.57 per ADS, compared with US$159.9 million, or US$0.34 per ADS, in the fourth quarter of 2021.
The company's Chairman and Chief Executive Officer, Mr. Lawrence Ho, stated that despite the adverse effects of travel restrictions, the company is encouraged by the increased visitation and volume seen since the travel restrictions between mainland China and Macau were relaxed on January 8, 2023. The company is optimistic about continued growth in the Philippines and Cyprus as international travel normalizes.
Melco is committed to the sustainable and diversified development of the tourism and leisure industry in Macau and has been awarded a gaming concession to continue to operate in Macau for the next 10 years. The company will work with the Macau government, the community, and stakeholders to contribute to the city's development as a leading global tourism destination.
In respect of the company's development projects, it is expected that Studio City Phase 2 will open in the second quarter of 2023, while the opening of City of Dreams Mediterranean has been extended to June 30, 2023, under the terms of the company's gaming license. Melco is working with its contractors with a target to open within that timeframe.
Melco remains steadfast on reaching its 2030 goals in environmental sustainability, monitoring food waste through the Winnow AI technology installed in employee kitchens and dining areas and continuously adjusting menus accordingly. Food waste composted on-site in both Macau and Manila increased by 30% overall compared to 2021, and usage of the compost for the properties' green areas has continued to improve as a result of ongoing adjustments with landscaping teams.
The company is also working towards achieving BREEAM certification for the completed construction of Studio City Phase 2 and City of Dreams Mediterranean, following the 'Excellent' ratings that the company obtained for the design stage of both properties.
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