Melcos Macau subsidiary slips to US$109 million loss in Q2

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Melco Resorts Finance Limited, the Melco Resorts & Entertainment subsidiary that operates its Macau resorts, has reported a net loss of USS$108.9 million for the June 2021 quarter, narrowed from a loss of US$198.4 million in 2Q20.

The improvement came on the back of a 185.6% increase in operating revenues to US$530.8 million, of which US$363.8 million came from City of Dreams up three-fold from the US$120.8 million recorded a year earlier.

Melco Resorts Finance runs both City of Dreams Manila and Altira Macau, and oversees casino operations at Studio City of which Melco Resorts & Entertainment holds a 54.7% stake.

The increase in total operating revenues was primarily attributable to an improved performance at City of Dreams, as well as increased casino revenues generated from the operations of Studio City Casino by our subsidiary, Melco Resorts Macau, the gaming sub-concessionaire, the company said.

Melco Resorts & Entertainment last month reported a group-wide net loss of US$185.7 million for the three months to 30 June 2021, which includes results from City of Dreams Manila and Cyprus Casinos.

However, it is likely the companys losses will grow in Q3 given the effect of recent travel restrictions from an outbreak of COVID-19 across parts of mainland China in July and early August.

The pace of recovery from COVID-19 related disruptions continues to depend on various future events, such as the successful production, distribution and widespread acceptance of safe and effective vaccines, the development of effective treatments for COVID-19, including for new strains of COVID-19, the duration of travel and visa restrictions as well as customer sentiment and behavior, Melco said.

It also pointed to the length of time before customers resume traveling and participating in entertainment and leisure activities at high-density venues and the impact of potential higher unemployment rates, declines in income levels and loss of personal wealth resulting from the COVID-19 outbreak on consumer behavior related to discretionary spending and traveling, all of which remain highly uncertain.