Melco Resorts and Entertainment reported its 2019 fourth-quarter results on Thursday, which was driven mainly by strong performance in its mass-market segment.
Total operating revenues for the fourth quarter of 2019 was US$1.45 billion, representing an increase of approximately 3 percent year-on-year - in line with analyst estimates.
Net income attributable to Melco, however, fell to US$68.1 million, compared with US$126.6 million, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.
Adjusted Property EBITDA was US$409.8 million representing a decrease of 4 percent.
Melco chairman and CEO Lawrence Ho said that mass remained robust despite macro headwinds and events in Hong Kong.
Melco management, however, expressed concern regarding the gaming industry’s recovery following the coronavirus outbreak.
According to a note from Bernstein, management is fairly bearish on the possibility of early recovery for the industry and said that the next 4-6 months will be challenging.
On Thursday, Macau’s casinos were permitted to reopen after 15 days of closure.
Melco said that gaming operations at City of Dreams, Mocha Clubs and Studio City resumed on February 20, 2020. Gaming operations at Altira Macau will resume at a subsequent date.
Giving an update on its expansion of Studio City, Ho said that that construction is progressing. Upon completion, it will offer 900 additional luxury hotel rooms and suites, one of the world’s largest indoor water parks, a Cineplex, fine-dining restaurants, and state-of-the-art MICE spaces.
Ho also reiterated Japan as its core focus. In December last year, Melco submitted its response to the Yokohama RFC.
“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Yokohama realize the vision of developing a world-leading IR with a unique, Japanese touch,” he said.
The board has declared a quarterly dividend of US$0.16512 per ADS.
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