Operator News

China – Melco confirms plans for Typhoon Hato relief fund

By Phil - 4 September 2017

Melco Resorts & Entertainment has confirmed plans for the allocation of its $30m MOP cash relief fund to support employees, the community and restoration efforts in the aftermath of Typhoon Hato in Macau.

Of that money, $20m MOP, two thirds of the cash relief fund, will be allocated to support employees and their families in disbursements of up to $10,000 MOP per case, in order to direct funds to a great number of colleagues in need. The remaining $10m MOP will be allocated to help rebuild the community.

Lawrence Ho, Chairman and CEO of Melco Resorts & Entertainment said: “Right now, our top priority is to get all of Macau to stand tall again so that all of us are better prepared and more resilient for the future. I am so proud of how our colleagues have risen to the challenge of rebuilding our community after Typhoon Hato. Many of our colleagues and their families were among those most affected. We will be fast-tracking the distribution of relief funds for our colleagues and their immediate family.”

Melco is currently in the process of establishing an independent committee, which will be comprised of representatives from community associations, education groups, trade unions and other civic organisations, to oversee the allocation of funds to ensure that all cash is delivered to those most in need.

The company has seen huge growth in its financial results for the second quarter of 2017, having overtaken its Macau operations completely following the termination of its previous partnership in the territory with Crown Resorts.
Net revenue for the second quarter of 2017 was US$1,298.2m, representing an increase of approximately 21 per cent from US$1,070.4m for the comparable period in 2016. The increase in net revenue was primarily attributable to improved group-wide rolling chip revenues.

Operating income for the second quarter of 2017 was US$127.4m, compared with operating income of US$72.4m in the second quarter of 2016, representing an increase of 76 per cent.

Mr. Ho said: “Macau continues on its strong growth trajectory, with all gaming segments delivering impressive year-over-year growth driven by improving tourism demographics, an ongoing improvement in player sentiment as well as an expansion of non-gaming amenities across Macau.

“As Macau evolves into a destination that offers a full breadth of gaming and non-gaming amenities to a wider range of customers from around the region, we are committed to ensuring our integrated resorts are well positioned to cater to these evolving trends.

“City of Dreams in Macau is undergoing its final development phase which, upon completion, will result in our flagship integrated resort once again setting new benchmarks of luxury and premium-focused entertainment and hospitality, reflecting a culmination of over a decade of experience in serving high-end and increasingly discerning customers in Macau.

“With the opening of Morpheus in the first half of 2018, and the redevelopment of the Countdown, the property will have approximately 2,100 five-star and luxury hotel rooms, to complement the integrated resort’s already market-leading premium mass and direct VIP gaming amenities and other non-gaming offerings.

“Studio City, our second integrated resort in Cotai, provides an ideal complement to City of Dreams. The integrated resort’s focus on more mainstream mass market customers allows us to broaden our customer reach. The property continues to ramp up its core mass market operations, while the newly opened rolling chip operations provide an incremental driver for revenue and earnings growth.
“In the Philippines, City of Dreams Manila continues to deliver record revenue and Property EBITDA, resulting in an impressive return on invested capital. Our decision to invest in this fast growing and attractive market is testament to our approach of identifying and investing in markets that drive long term value for our shareholders.

“While we remain committed to maximizing profitability of our current operations, we are also heavily focused on identifying additional value-accretive expansion opportunities, with a particular focus on Japan. We believe that our high quality assets, market-leading social safeguard systems and commitment to being an ideal partner to local governments and communities alike, as we have shown in Macau and the Philippines, places us in a strong position to compete for a license in this exciting market.”
For the quarter ended June 30, 2017, net revenue at City of Dreams was US$644.6m compared to US$629.9m in the second quarter of 2016.

Altira Macau generated US$107.6m compared to US$98.7m in the second quarter of 2016. Net revenue at Studio City was US$332.1m compared to US$183.8m in the second quarter of 2016. Net revenue at City of Dreams Manila was US$176.2m compared to US$120.2m in the second quarter of 2016.