Melco 2017 results driven by higher rolling chip and mass revenues

Thursday 8th of February 2018

Macau casino operator Melco Resorts & Entertainment saw its full year 2017 net revenue grow 17.7 percent to US$5.3 billion, primarily attributed to better group-wide performance across all gaming segments.

Adjusted property EBITDA for the year ended December 31, 2017 was $1.4 billion, up 31 percent year-on-year, while net income attributed to Melco Resorts was $347.0 million.

The company said its fourth quarter results also showed growth, with higher rolling chip revenue recorded across its properties, as well as higher mass table games revenue in Studio City and City of Dreams Manila. This was partially offset by lower contribution from City of Dreams in Macau, it said.

Lawrence Ho, chairman and chief executive officer in a filing, said he expects mass and premium mass to remain the primary drivers of Macau’s future growth, and that his properties will continue work to cater to this market.

He noted that Melco will continue to push City of Dreams Macau as the leader in premium mass gaming, with an extensive upgrade to the flagship property, which includes the announced launch of the Forbes 5-star “NÜWA” hotel, as well as the rebranding and redevelopment of The Count:Down, and the eagerly awaited opening of Morpheus.

Melco has also embarked on a series of property upgrades at Studio City, which will “refine the entertainment offerings and improve accessibility into the resort.”

“We will also continue to explore the phase 2 expansion of Studio City which we believe will augment the existing room inventory and entertainment offerings and contribute to the continued growth and development of this property,” said Ho.

Looking to Philippines, Ho noted that COD Manila delivered a strong quarter despite new supply at Entertainment City.

The properties across Macau and Manila have also seen a reshuffle of executives, with the redeployment of David Sisk appointed as the Property President of City of Dreams Macau, and Geoff Andres appointed as Property President of Studio City.

“Both of them have demonstrated their innovative spirit and their expertise in delivering strong growth. We believe the cross-pollination of new ideas and management initiatives will provide an opportunity for all our integrated resorts to benefit from performance improvements,” said Ho.

“Lastly, Japan continues to be a core focus of ours. With the passage of the Integrated Resorts (IR) implementation bill, the country will take a major step forward toward the development of the next generation of integrated resorts that will operate in this incredibly exciting, yet currently underpenetrated, tourism destination. With our high quality assets, dedication to world-class entertainment offerings, market-leading social safeguards and compliance culture, and commitment to being an ideal partner to local governments and communities alike, we believe Melco is in a strong position to help Japan realize the vision for integrated resort development with unique Japanese touch.”

Bricks & Mortar Earnings & Filings