Melco Resorts and Entertainment Limited is one of the leading Asian casino operators whose boss just recently shared his thoughts on what the future might hold for Macau. The company is an owner, operator, and developer of entertainment and casino facilities across Asia. Melco Resorts Entertainment Limited is based in Hong Kong. It has been present in the industry since 2004.
Today, the company owns several fully integrated casino resorts such as the Studio City Macau property, City of Dreams Manila, City of Dreams Macau, and Altira Macau. At the time of its inception, Melco International Development decided to enter a joint venture with Crown Limited which is an Australian gaming company. This marked the establishment of Melco Crown Entertainment Limited which was rebranded as Melco Resorts and Entertainment Limited back in 2017.
Speaking of the company’s business ventures, Melco Crown acquired a 60% share in the Studio City Macau venue which is a luxurious, resort project located on Cotai. Following new legislation related to the industry in Japan, Melco Resorts and Entertainment Limited submitted its official application to the government of Osaka in hopes to be given necessary permissions to construct and run a fully integrated casino resort here. However, in 209 the company decided to focus on the Yokohama market.
Difficult Times for the Macau Casino Industry
Macau Resorts and Entertainment Limited’s Chief Executive Officer and Chairman Lawrence Ho Yau Lung just recently decided to share his thoughts on what the future may hold for Macau casinos. In one of his official press releases, he said that it could take a long time for the Macau gambling industry to fully recover from the extremely negative impacts of the most recent Wuhan virus outbreak which caused all of Macau casinos to temporarily close their doors for at least fifteen days.
According to one report by GGRAsia, he made this revelation during a conference call with major investors who at the time discusses his company’s fourth-quarter financial outcomes. As previously mentioned, the Hong Kong-listed Macau Resorts and Entertainment Limited company is responsible for a number of casino resorts and several of them are located in Macau including the Studio City Macau venue and City of Dreams Macau.
The company also runs the City of Dreams Manila facility in the Philippines and it is also hoping to soon open its five hundred-room City of Dreams Mediterranean development located in the village of Tserkezoi. Lawrence Ho Yau Lung told major investors that his company anticipates Macau to remain quiet for a long time following the Wuhan virus outbreak. He also told investors and shareholders that in his opinion the gambling industry in Macau will most likely face a number of other difficulties over the following four to six months.
Macau VIP Sector to Rebound First
Lawrence Ho Yau Lung also believed that the Macau VIP sector will be the very first to rebound as it is dependent on high-value players that come from all over Asia to Macau. After the conference was held, the company’s officials also revealed that the firm’s Macau properties stood at around $2.5 million regarding daily expenses while the company’s tally was lower for around $500,000 than before following the company initiating cost-cutting efforts and reductions in other costs across different business levels.
As reported by GGRAsia, the company’s fourth-quarter financial outcomes also show a 3% increase in operating revenues which hit $1.45 billion mainly thanks to the company’s performance related to its mass-market businesses. Nonetheless, the casino operator also posted a 46% diminution in income for the last three months which hit $68.1 million. At the same time, the company’s operational equivalent decreased by around 15% to reach $173.4 million while its earnings before amortization, depreciation, tax, and interest declined for around 4% to reach $409.8 million.