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Melco Announces Unaudited Second Quarter 2020 Earnings

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MACAU, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (Melco or the Company), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the second quarter of 2020.

Total operating revenues for the second quarter of 2020 were US$0.18 billion, representing a decrease of approximately 88% from US$1.46 billion for the comparable period in 2019. The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the COVID-19 pandemic, which resulted in a significant decline in inbound tourism in the second quarter of 2020.

Operating loss for the second quarter of 2020 was US$370.8 million, compared with operating income of US$208.0 million in the second quarter of 2019.

Melco generated negative Adjusted Property EBITDA (1) of US$156.3 million in the second quarter of 2020, compared with Adjusted Property EBITDA of US$448.0 million in the second quarter of 2019.

Net loss attributable to Melco Resorts & Entertainment Limited for the second quarter of 2020 was US$368.1 million, or US$0.77 per ADS, compared with net income attributable to Melco Resorts & Entertainment Limited of US$101.8 million, or US$0.21 per ADS, in the second quarter of 2019. The net loss attributable to noncontrolling interests during the second quarters of 2020 and 2019 were US$58.7 million and US$2.5 million, respectively, all of which were related to Studio City, City of Dreams Manila, and the Cyprus Operations.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, COVID-19 and the subsequent travel restrictions and quarantine requirements have significantly impacted our second quarter operating and financial performance. To help mitigate the impact from COVID-19, we have been quick to formulate strategies to preserve liquidity and improve the Companys balance sheet. In April, we bolstered our balance sheet by entering into a new senior facilities agreement and by selling the shares we held in Crown Resorts Limited. In May, the board suspended the Companys quarterly dividend program.

To further enhance our balance sheet, our subsidiary, Melco Resorts Finance Limited, recently accessed the capital markets and issued US$850 million aggregate principal amount of 5.750% senior notes due 2028.

In addition, in relation to our Studio City project, Studio City Finance Limited, a wholly-owned subsidiary of Studio City International Holdings Limited (SCIHL), issued US$500 million aggregate principal amount of 6.00% senior notes due 2025, and US$500 million aggregate principal amount of 6.50% senior notes due 2028 in July. In August, SCIHL also completed a series of private placements of its Class A ordinary shares and American depositary shares to certain existing shareholders, including Melco, which resulted in gross proceeds to SCIHL of approximately US$500 million. Proceeds from the Studio City transactions significantly strengthen SCIHLs balance sheet and its ability to fund the Phase 2 expansion of Studio City.

Melco continues to manage its balance sheet in a prudent manner. As of June 30, 2020, we had cash on hand of approximately US$1.2 billion, and undrawn revolver facilities of approximately US$1.6 billion. Proforma for the issuance of the new senior notes and the Studio City private share placements (but excluding Melcos subscription therein of approximately US$280 million), Melcos cash on hand as of June 30, 2020 was approximately US$2.0 billion, while the undrawn revolver facilities in Macau and Manila were approximately US$2.0 billion. 

Despite the current economic uncertainty, sustainability remains a high priority in Melcos operations. We published our 2019 Sustainability Report, in June, highlighting our progress made in the last twelve months, which includes: 1) receiving an A- and Best First Time Performer accolade from CDP, one of the worlds most respected and long-standing environmental disclosure systems, 2) diverting 712 tons of waste from disposal to recycling and composting, and 3) installing solar panels at City of Dreams Manila with the potential to generate 100,000 kWh of electricity per month. In July, Melco became a signatory to the Global Tourism Plastics Initiative led by the UN Environment Programme and the World Tourism Organisation in collaboration with the Ellen MacArthur Foundation.

Melco remains committed to its global development program. Construction on the expansion of Studio City is progressing. Upon completion, it will offer approximately 900 additional luxury hotel rooms and suites, one of the worlds largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space. In Europe, we are developing City of Dreams Mediterranean, which upon completion, will be Europes largest integrated resort with approximately 500 luxury hotel rooms, a 1,500-seat amphitheater, and approximately 10,000 square meters of MICE space.

Turning to Japan, I want to highlight our unwavering commitment to bring to the country the best IR the world has ever seen. 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 Japan realize the vision of developing a world-leading IR with a unique, Japanese touch.

Lastly, we are excited to see some early signs of returning to normal operations in our integrated resorts. In mid-June, operations at Cyprus Casinos have partially resumed. In addition, commencing from July 15, 2020, certain travelers entering Guangdong from Macau were no longer subject to mandatory quarantine. The issuance of IVS visas was reinstated for Zhuhai residents on August 12, 2020, while the nationwide resumption of IVS visa issuance is expected to commence on September 23, 2020. We are hopeful these announcements signal the eventual resumption of the pre-COVID travel between Macau and Mainland China. While we are encouraged by the recent positive developments, ensuring the safety and well-being of our colleagues, customers and communities in which we operate remains our highest priority.

City of Dreams Second Quarter Results

ÿFor the quarter ended June 30, 2020, total operating revenues at City of Dreams were US$105.4 million, compared to US$790.8 million in the second quarter of 2019. City of Dreams generated negative Adjusted EBITDA of US$70.3 million in the second quarter of 2020, compared with Adjusted EBITDA of US$250.8 million in the second quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments and lower non-gaming revenue, as well as a higher provision for credit losses.

ÿRolling chip volume was US$2.03 billion for the second quarter of 2020 versus US$14.90 billion in the second quarter of 2019. The rolling chip win rate was 6.13% in the second quarter of 2020 versus 3.16% in the second quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$41.4 million in the second quarter of 2020, compared with US$1.37 billion in the second quarter of 2019. The mass market table games hold percentage was 31.5% in the second quarter of 2020 compared to 31.6% in the second quarter of 2019.

Gaming machine handle for the second quarter of 2020 was US$82.5 million, compared with US$1.04 billion in the second quarter of 2019. The gaming machine win rate was 1.8% in the second quarter of 2020 versus 3.8% in the second quarter of 2019.

Total non-gaming revenue at City of Dreams in the second quarter of 2020 was US$12.8 million, compared with US$98.4 million in the second quarter of 2019.

Altira Macau Second Quarter Results

For the quarter ended June 30, 2020, total operating revenues at Altira Macau were US$17.0 million, compared to US$104.3 million in the second quarter of 2019. Altira Macau generated negative Adjusted EBITDA of US$19.4 million in the second quarter of 2020, compared with Adjusted EBITDA of US$8.5 million in the second quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments.

Rolling chip volume was US$0.37 billion in the second quarter of 2020 versus US$4.36 billion in the second quarter of 2019. The rolling chip win rate was 6.19% in the second quarter of 2020 versus 2.95% in the second quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

In the mass market table games segment, drop was US$14.5 million in the second quarter of 2020 versus US$150.0 million in the second quarter of 2019. The mass market table games hold percentage was 11.3% in the second quarter of 2020, compared with 22.5% in the second quarter of 2019.
   
Gaming machine handle for the second quarter of 2020 was US$43.4 million, compared with US$83.5 million in the second quarter of 2019. The gaming machine win rate was 3.5% in the second quarter of 2020 versus 4.4% in the second quarter of 2019.

Total non-gaming revenue at Altira Macau in the second quarter of 2020 was US$1.4 million, compared with US$6.6 million in the second quarter of 2019.

Mocha Clubs Second Quarter Results

Total operating revenues from Mocha Clubs were US$23.2 million in the second quarter of 2020, compared to US$28.9 million in the second quarter of 2019. Mocha Clubs generated US$4.4 million of Adjusted EBITDA in the second quarter of 2020, compared with US$5.3 million in the same period in 2019.

Gaming machine handle for the second quarter of 2020 was US$496.2 million, compared with US$609.4 million in the second quarter of 2019. The gaming machine win rate was 4.7% in the second quarter of 2020 versus 4.8% in the second quarter of 2019.

Studio City Second Quarter Results

For the quarter ended June 30, 2020, total operating revenues at Studio City were US$10.9 million, compared to US$328.9 million in the second quarter of 2019. Studio City generated negative Adjusted EBITDA of US$42.3 million in the second quarter of 2020, compared with Adjusted EBITDA of US$94.8 million in the second quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming segments and lower non-gaming revenue.

Studio Citys rolling chip volume was US$0.23 billion in the second quarter of 2020 versus US$3.10 billion in the second quarter of 2019. The rolling chip win rate was 0.17% in the second quarter of 2020 versus 2.76% in the second quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$20.1 million in the second quarter of 2020, compared with US$877.0 million in the second quarter of 2019. The mass market table games hold percentage was 22.2% in the second quarter of 2020, compared to 29.2% in the second quarter of 2019.

Gaming machine handle for the second quarter of 2020 was US$67.6 million, compared with US$630.9 million in the second quarter of 2019. The gaming machine win rate was 2.7% in the second quarter of 2020 versus 3.2% in the second quarter of 2019.

Total non-gaming revenue at Studio City in the second quarter of 2020 was US$7.6 million, compared with US$36.9 million in the second quarter of 2019.

City of Dreams Manila Second Quarter Results

For the quarter ended June 30, 2020, total operating revenues at City of Dreams Manila were US$7.2 million, compared to US$176.1 million in the second quarter of 2019. City of Dreams Manila generated negative Adjusted EBITDA of US$22.6 million in the second quarter of 2020, compared with Adjusted EBITDA of US$82.8 million in the comparable period of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of the government-mandated casino closure for all of the second quarter of 2020 (other than the limited dry/trial run for a limited period during the quarter as permitted by the Philippine Amusement and Gaming Corporation (PAGCOR)). 

City of Dreams Manilas rolling chip volume was US$0.15 billion in the second quarter of 2020 versus US$1.90 billion in the second quarter of 2019. The rolling chip win rate was 3.38% in the second quarter of 2020 versus 5.21% in the second quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop decreased to US$7.5 million for the second quarter of 2020, compared with US$192.8 million in the second quarter of 2019. The mass market table games hold percentage was 24.3% in the second quarter of 2020, compared to 30.4% in the second quarter of 2019.

Gaming machine handle for the second quarter of 2020 was US$30.4 million, compared with US$945.1 million in the second quarter of 2019. The gaming machine win rate was 6.6% in the second quarter of 2020 versus 5.4% in the second quarter of 2019.

Total non-gaming revenue at City of Dreams Manila in the second quarter of 2020 was US$1.4 million, compared with US$31.8 million in the second quarter of 2019.

Cyprus Operations Second Quarter Results

The Company is currently operating a temporary casino, the first casino in the Republic of Cyprus and is licensed to operate four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

For the quarter ended June 30, 2020, total operating revenues at Cyprus Casinos were US$3.5 million, compared to US$22.1 million in the second quarter of 2019. Cyprus Casinos generated negative Adjusted EBITDA of US$6.0 million in the second quarter of 2020, compared with Adjusted EBITDA of US$5.8 million in the second quarter of 2019. The year-over-year decrease in Adjusted EBITDA was primarily a result of government-mandated casino closures in the second quarter of 2020.

No rolling chip gross gaming revenue was generated in the second quarter 2020. Rolling chip volume totaled US$0.2 million with a rolling chip win rate of negative 23.12% in the second quarter of 2019. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$4.1 million in the second quarter of 2020 versus US$35.3 million in the second quarter of 2019. The mass market table games hold percentage was 11.1% in the second quarter of 2020, compared to 21.1% in the second quarter of 2019.

Gaming machine handle for the second quarter of 2020 was US$57.2 million, compared with US$271.7 million in the second quarter of 2019. The gaming machine win rate was 5.2% in the second quarter of 2020 versus 5.4% in the second quarter of 2019.

Other Factors Affecting Earnings

Total net non-operating expenses for the second quarter of 2020 were US$57.9 million, which mainly included interest expenses, net of amounts capitalized of US$80.3 million, partially offset by other net non-operating income of US$27.6 million, which was primarily attributable to the fair value gain from the investment in shares of Crown Resorts Limited during the second quarter of 2020.

Depreciation and amortization costs of US$155.2 million were recorded in the second quarter of 2020, of which US$14.4 million related to the amortization expense for our gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.

The negative Adjusted EBITDA for Studio City for the three months ended June 30, 2020 referred to in this press release is US$8.7 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for SCIHL dated August 20, 2020 (the Studio City earnings release). The Adjusted EBITDA of Studio City contained in the Studio City earnings release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of June 30, 2020 aggregated to US$1.17 billion, including US$25.0 million of restricted cash, which was primarily related to Studio City. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$4.75 billion at the end of the second quarter of 2020.

Capital expenditures for the second quarter of 2020 were US$82.5 million, which primarily related to various projects at City of Dreams and Studio City Phase 2 construction.

Recent Developments

The COVID-19 outbreak continues to have a material effect on our operations, financial position, and prospects during the third quarter of 2020.

Commencing from July 15, 2020, certain travelers entering Guangdong from Macau were no longer subject to mandatory quarantine. On August 12, 2020, the Chinese authorities resumed the issuance of IVS visas for Zhuhai residents. According to the National Immigration Administration, issuance of IVS visas for Guangdong residents will resume on August 26, 2020, while the nationwide resumption of IVS visa issuance will commence on September 23, 2020. Despite these developments, our operations continue to be impacted by significant travel bans, restrictions, and quarantine requirements imposed by the governments in Macau, Hong Kong, and certain provinces in China on visitors traveling to and from Macau. Additionally, health-related precautionary measures remain in place at our properties in Macau, which could continue to impact visitation and customer spending.

Our Philippines casino gaming operations were closed due to the enhanced community quarantine for the entire island of Luzon, including Metro Manila, which began on March 16, 2020 and was extended to July 31, 2020. However, during the quarter, City of Dreams Manila was allowed by PAGCOR to undertake a dry run/trial run of its gaming and hospitality operations for a limited period with only a limited number of participants strictly adhering to the new guidelines on social distancing and hygiene and sanitation procedures imposed by the government of the Philippines. The PAGCOR-sanctioned dry run/trial run aimed to address all potential operational concerns to achieve a seamless reopening for City of Dreams Manila.

The COVID-19 outbreak has also impacted the construction of the Studio City Phase 2 project and the progress of construction works at the City of Dreams Mediterranean project. We currently expect additional time will be needed to complete the construction of these projects.

As the disruptions from the COVID-19 outbreak are ongoing, any recovery from such disruptions will depend on future developments, such as the duration of travel and visa restrictions and customer sentiment and behavior, including 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 are highly uncertain.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its second quarter 2020 financial results on Thursday, August 20, 2020 at 8:30 a.m. Eastern Time (or 8:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free

1 844 760 0770

US Toll / International

1 347 549 4094

HK Toll

852 3018 8307

HK Toll Free

800 906 613

Japan Toll

81 3 4503 6004

Japan Toll Free

012 092 5482

UK Toll Free

080 0051 4241

Australia Toll

61 290 833 216

Australia Toll Free

1 800 754 642

Philippines Toll Free

1 800 1612 0312

 

 

Passcode

7753658

An audio webcast will also be available at http://www.melco-resorts.com .

To access the replay, please use the dial-in details below:

US Toll Free

1 855 452 5696

US Toll / International

1 646 254 3697

HK Toll

852 3051 2780

HK Toll Free

800 963 117

Japan Toll

81 3 4580 6717

Japan Toll Free

012 095 9034

Philippines Toll Free

1 800 1612 0166

 

 

Conference ID

7753658

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the Company) may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Companys beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) the recent global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences on our business, our industry and the global economy, (ii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iii) capital and credit market volatility, (iv) local and global economic conditions, (v) our anticipated growth strategies, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as may, will, expect, anticipate, target, aim, estimate, intend, plan, believe, potential, continue, is/are likely to or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Companys filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

(1)

Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the Philippine Parties), land rent to Belle Corporation and other non-operating income and expenses. Adjusted Property EBITDA is earnings before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors. The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a companys ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Companys performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

 

 

 

Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Companys calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of Adjusted EBITDA and Adjusted Property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

 

(2)

Adjusted net income/loss is net income/loss before pre-opening costs, development costs, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share (EPS) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to net income/loss and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau ( www.altiramacau.com ), an integrated resort located at Taipa, Macau and City of Dreams ( www.cityofdreamsmacau.com ), an integrated urban resort located in Cotai, Macau. Its business also includes the Mocha Clubs ( www.mochaclubs.com ), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City ( www.studiocity-macau.com ), a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila ( www.cityofdreamsmanila.com ), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean ( www.cityofdreamsmed.com.cy ) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (Cyprus Casinos). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.  For more information about the Company, please visit www.melco-resorts.com .

The Company is strongly supported by its single largest shareholder, Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

For the investment community, please contact:
Richard Huang
Director, Investor Relations
Tel: +852 2598 3619
Email: richardlshuang@melco-resorts.com

For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com

 

 

 

 

 

 

 

 

 

 

 

 

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

 

 

 

(As adjusted) (3)

 

 

 

(As adjusted) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

Casino

$

147,584

 

 

$

1,287,674

 

 

$

860,139

 

 

$

2,485,578

 

Rooms

 

7,223

 

 

 

86,411

 

 

 

52,044

 

 

 

170,480

 

Food and beverage

 

5,719

 

 

 

57,465

 

 

 

34,662

 

 

 

113,664

 

Entertainment, retail and other

 

15,324

 

 

 

32,847

 

 

 

40,180

 

 

 

77,782

 

Total operating revenues

 

175,850

 

 

 

1,464,397

 

 

 

987,025

 

 

 

2,847,504

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Casino

 

(215,789

)

 

 

(818,247

)

 

 

(779,630

)

 

 

(1,600,071

)

Rooms

 

(8,383

)

 

 

(21,845

)

 

 

(26,324

)

 

 

(44,338

)

Food and beverage

 

(15,430

)

 

 

(43,585

)

 

 

(47,660

)

 

 

(88,486

)

Entertainment, retail and other

 

(15,213

)

 

 

(26,433

)

 

 

(35,537

)

 

 

(48,247

)

General and administrative

 

(113,932

)

 

 

(146,407

)

 

 

(245,229

)

 

 

(277,877

)

Payments to the Philippine Parties

 

2,771

 

 

 

(23,203

)

 

 

(4,935

)

 

 

(37,255

)

Pre-opening costs

 

(226

)

 

 

(603

)

 

 

(621

)

 

 

(4,113

)

Development costs

 

(6,372

)

 

 

(3,920

)

 

 

(19,802

)

 

 

(9,440

)

Amortization of gaming subconcession

 

(14,363

)

 

 

(14,209

)

 

 

(28,686

)

 

 

(28,395

)

Amortization of land use rights

 

(5,726

)

 

 

(5,664

)

 

 

(11,435

)

 

 

(11,319

)

Depreciation and amortization

 

(135,085

)

 

 

(142,544

)

 

 

(277,318

)

 

 

(281,722

)

Property charges and other

 

(18,892

)

 

 

(9,774

)

 

 

(30,564

)

 

 

(17,206

)

Total operating costs and expenses

 

(546,640

)

 

 

(1,256,434

)

 

 

(1,507,741

)

 

 

(2,448,469

)

Operating (loss) income

 

(370,790

)

 

 

207,963

 

 

 

(520,716

)

 

 

399,035

 

Non-operating income (expenses):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,153

 

 

 

1,448

 

 

 

2,295

 

 

 

3,572

 

Interest expenses, net of amounts capitalized

 

(80,269

)

 

 

(75,922

)

 

 

(158,424

)

 

 

(145,545

)

Loan commitment fees

 

(1,929

)

 

 

(507

)

 

 

(3,173

)

 

 

(790

)

Foreign exchange losses, net

 

(2,907

)

 

 

(9,316

)

 

 

(6,218

)

 

 

(9,330

)

Other income (expenses), net

 

27,590

 

 

 

(23,078

)

 

 

(151,807

)

 

 

(16,351

)

Loss on extinguishment of debt

 

(1,236

)

 

 

-

 

 

 

(1,236

)

 

 

(3,721

)

Costs associated with debt modification

 

(310

)

 

 

-

 

 

 

(310

)

 

 

(579

)

Total non-operating expenses, net

 

(57,908

)

 

 

(107,375

)

 

 

(318,873

)

 

 

(172,744

)

(Loss) income before income tax

 

(428,698

)

 

 

100,588

 

 

 

(839,589

)

 

 

226,291

 

Income tax credit (expense)

 

1,886

 

 

 

(1,298

)

 

 

6,726

 

 

 

(4,989

)

Net (loss) income

 

(426,812

)

 

 

99,290

 

 

 

(832,863

)

 

 

221,302

 

Net loss attributable to noncontrolling interests

 

58,683

 

 

 

2,490

 

 

 

100,686

 

 

 

542

 

Net (loss) income attributable to Melco Resorts & Entertainment Limited

$

(368,129

)

 

$

101,780

 

 

$

(732,177

)

 

$

221,844

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to Melco Resorts & Entertainment Limited per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.257

)

 

$

0.071

 

 

$

(0.511

)

 

$

0.154

 

Diluted

$

(0.257

)

 

$

0.070

 

 

$

(0.511

)

 

$

0.154

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to Melco Resorts & Entertainment Limited per ADS:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.772

)

 

$

0.213

 

 

$

(1.533

)

 

$

0.463

 

Diluted

$

(0.772

)

 

$

0.211

 

 

$

(1.533

)

 

$

0.461

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding used in net (loss) income attributable to Melco Resorts & Entertainment Limited per share calculation:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1,430,748,936

 

 

 

1,436,695,517

 

 

 

1,433,255,599

 

 

 

1,436,127,426

 

Diluted

 

1,430,748,936

 

 

 

1,444,897,243

 

 

 

1,433,255,599

 

 

 

1,443,357,571

 


(3)

In connection with the Company's acquisition of a 75% interest in ICR Cyprus Holdings Limited ("ICR Cyprus") from its parent company, Melco International Development Limited, on July 31, 2019, the prior period amounts presented in these unaudited condensed consolidated financial statements have been adjusted to include the financial results of the ICR Cyprus group in accordance with applicable accounting standards.

 

 


Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

2020

 

2019

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,144,673

 

 

$

1,394,982

 

Investment securities

 

24,494

 

 

 

49,369

 

Restricted cash

 

24,589

 

 

 

37,390

 

Accounts receivable, net

 

176,547

 

 

 

284,333

 

Amounts due from affiliated companies

 

334

 

 

 

442

 

Inventories

 

41,126

 

 

 

43,959

 

Prepaid expenses and other current assets

 

110,093

 

 

 

84,197

 

Total current assets

 

1,521,856

 

 

 

1,894,672

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

5,656,967

 

 

 

5,723,909

 

Gaming subconcession, net

 

113,412

 

 

 

141,440

 

Intangible assets, net

 

30,523

 

 

 

31,628

 

Goodwill

 

86,568

 

 

 

95,620

 

Long-term prepayments, deposits and other assets

 

209,848

 

 

 

176,478

 

Investment securities

 

-

 

 

 

568,936

 

Restricted cash

 

406

 

 

 

130

 

Deferred tax assets

 

6,285

 

 

 

3,558

 

Operating lease right-of-use assets

 

100,538

 

 

 

111,043

 

Land use rights, net

 

733,216

 

 

 

741,008

 

Total assets

$

8,459,619

 

 

$

9,488,422

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

9,254

 

 

$

21,882

 

Accrued expenses and other current liabilities

 

993,166

 

 

 

1,420,516

 

Income tax payable

 

7,704

 

 

 

8,516

 

Operating lease liabilities, current

 

28,431

 

 

 

33,152

 

Finance lease liabilities, current

 

53,264

 

 

 

39,725

 

Current portion of long-term debt, net

 

-

 

 

 

146

 

Amounts due to affiliated companies

 

1,822

 

 

 

1,523

 

Total current liabilities

 

1,093,641

 

 

 

1,525,460

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

4,750,712

 

 

 

4,393,985

 

Other long-term liabilities

 

21,403

 

 

 

18,773

 

Deferred tax liabilities, net

 

49,329

 

 

 

56,677

 

Operating lease liabilities, non-current

 

80,106

 

 

 

88,259

 

Finance lease liabilities, non-current

 

263,659

 

 

 

262,040

 

Total liabilities

 

6,258,850

 

 

 

6,345,194

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; 1,456,547,942 and 1,456,547,942 shares issued; 1,430,797,219 and 1,437,328,096 shares outstanding, respectively

 

14,565

 

 

 

14,565

 

Treasury shares, at cost; 25,750,723 and 19,219,846 shares, respectively

 

(121,821

)

 

 

(90,585

)

Additional paid-in capital

 

3,185,874

 

 

 

3,178,579

 

Accumulated other comprehensive losses

 

(33,604

)

 

 

(18,803

)

Accumulated losses

 

(1,456,081

)

 

 

(644,788

)

Total Melco Resorts & Entertainment Limited shareholders equity

 

1,588,933

 

 

 

2,438,968

 

Noncontrolling interests

 

611,836

 

 

 

704,260

 

Total shareholders' equity

 

2,200,769

 

 

 

3,143,228

 

Total liabilities and shareholders' equity

$

8,459,619

 

 

$

9,488,422

 

 


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

 

 

 

(As adjusted) (3)

 

 

 

(As adjusted) (3)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to Melco Resorts & Entertainment Limited

$

(368,129

)

 

$

101,780

 

 

$

(732,177

)

 

$

221,844

 

Pre-opening costs

 

226

 

 

 

603

 

 

 

621

 

 

 

4,113

 

Development costs

 

6,372

 

 

 

3,920

 

 

 

19,802

 

 

 

9,440

 

Property charges and other

 

18,892

 

 

 

9,774

 

 

 

30,564

 

 

 

17,206

 

Loss on extinguishment of debt

 

1,236

 

 

 

-

 

 

 

1,236

 

 

 

3,721

 

Costs associated with debt modification

 

310

 

 

 

-

 

 

 

310

 

 

 

579

 

Income tax impact on adjustments

 

(1,491

)

 

 

(1,213

)

 

 

(3,823

)

 

 

(2,282

)

Noncontrolling interests impact on adjustments

 

(129

)

 

 

(3,939

)

 

 

(2,356

)

 

 

(7,084

)

Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited

$

(342,713

)

 

$

110,925

 

 

$

(685,823

)

 

$

247,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.240

)

 

$

0.077

 

 

$

(0.479

)

 

$

0.172

 

Diluted

$

(0.240

)

 

$

0.077

 

 

$

(0.479

)

 

$

0.171

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per ADS:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.719

)

 

$

0.232

 

 

$

(1.436

)

 

$

0.517

 

Diluted

$

(0.719

)

 

$

0.230

 

 

$

(1.436

)

 

$

0.514

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding used in adjusted net (loss) income attributable to Melco Resorts & Entertainment Limited per share calculation:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

1,430,748,936

 

 

 

1,436,695,517

 

 

 

1,433,255,599

 

 

 

1,436,127,426

 

Diluted

 

1,430,748,936

 

 

 

1,444,897,243

 

 

 

1,433,255,599

 

 

 

1,443,357,571

 

 

 

 

 

 

 

 

 

 

 

 

 


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating (Loss) Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2020

 

Altira Macau

 

Mocha

 

City of Dreams

 

Studio City

 

City of Dreams Manila

 

Cyprus Operations

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

$

(25,382

)

 

$

2,543

 

 

$

(141,229

)

 

$

(86,621

)

 

$

(37,539

)

 

$

(9,213

)

 

$

(73,349

)

 

$

(370,790

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments to the Philippine Parties

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,771

)

 

 

-

 

 

 

-

 

 

 

(2,771

)

Land rent to Belle Corporation

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

785

 

 

 

-

 

 

 

-

 

 

 

785

 

Pre-opening costs

 

-

 

 

 

-

 

 

 

(50

)

 

 

28

 

 

 

-

 

 

 

248

 

 

 

-

 

 

 

226

 

Development costs

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,372

 

 

 

6,372

 

Depreciation and amortization

 

5,269

 

 

 

1,833

 

 

 

63,159

 

 

 

43,811

 

 

 

16,354

 

 

 

2,821

 

 

 

21,927

 

 

 

155,174

 

Share-based compensation

 

111

 

 

 

36

 

 

 

1,391

 

 

 

539

 

 

 

408

 

 

 

22

 

 

 

9,969

 

 

 

12,476

 

Property charges and other

 

564

 

 

 

-

 

 

 

6,387

 

 

 

(99

)

 

 

203

 

 

 

132

 

 

 

11,705

 

 

 

18,892

 

Adjusted EBITDA

 

(19,438

)

 

 

4,412

 

 

 

(70,342

)

 

 

(42,342

)

 

 

(22,560

)

 

 

(5,990

)

 

 

(23,376

)

 

 

(179,636

)

Corporate and Other expenses

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

23,376

 

 

 

23,376

 

Adjusted Property EBITDA

$

(19,438

)

 

$

4,412

 

 

$

(70,342

)

 

$

(42,342

)

 

$

(22,560

)

 

$

(5,990

)

 

$

-

 

 

$

(156,260

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

Altira Macau

 

Mocha City of Dreams Studio City City of Dreams Manila Cyprus Operations Corporate and Other Total (As adjusted)(3) (As adjusted)(3) (As adjusted)(3) Operating income (loss)$2,484 $3,650 $183,527 $39,185 $39,451 $2,590 $(62,924) $207,963 Payments to the Philippine Parties - - - - 23,203 - - 23,203 Land rent to Belle Corporation - - - - 762 - - 762 Pre-opening costs - - (46) 60 (7) 596 - 603 Development costs - - - - - - 3,920 3,920 Depreciation and amortization 5,883 1,989 66,293 46,610 19,023 2,589 20,030 162,417 Share-based compensation 104 38 1,065 508 348 51 6,142 8,256 Property charges and other 15 (389) (66) 8,413 51 - 1,750 9,774 Adjusted EBITDA 8,486 5,288 250,773 94,776 82,831 5,826 (31,082) 416,898 Corporate and Other expenses - - - - - - 31,082 31,082 Adjusted Property EBITDA$8,486 $5,288 $250,773 $94,776 $82,831 $5,826 $- $447,980



Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating (Loss) Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

Six Months Ended June 30, 2020

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

Operating (loss) income

$

(40,082

)

$

852

$

(148,106

)

$

(143,731

)

$

(33,251

)

$

(9,255

)

$

(147,143

)

$

(520,716

)

Payments to the Philippine Parties

-

-

-

-

4,935

-

-

4,935

Land rent to Belle Corporation

-

-

-

-

1,562

-

-

1,562

Pre-opening costs

37

-

(50

)

56

-

578

-

621

Development costs

-

-

-

-

-

-

19,802

19,802

Depreciation and amortization

10,679

3,609

126,510

86,644

32,820

5,658

51,519

317,439

Share-based compensation

226

5

2,448

932

726

101

16,646

21,084

Property charges and other

636

26

9,808

4,343

203

132

15,416

30,564

Adjusted EBITDA

(28,504

)

4,492

(9,390

)

(51,756

)

6,995

(2,786

)

(43,760

)

(124,709

)

Corporate and Other expenses

-

-

-

-

-

-

43,760

43,760

Adjusted Property EBITDA

$

(28,504

)

$

4,492

$

(9,390

)

$

(51,756

)

$

6,995

$

(2,786

)

$

-

$

(80,949

)

Six Months Ended June 30, 2019

Altira Macau

Mocha

City of Dreams

Studio City

City of Dreams Manila

Cyprus Operations

Corporate and Other

Total

(As adjusted)(3)

(As adjusted)(3)

(As adjusted)(3)

Operating income (loss)

$

12,188

$

7,566

$

341,747

$

87,664

$

62,456

$

5,693

$

(118,279

)

$

399,035

Payments to the Philippine Parties

-

-

-

-

37,255

-

-

37,255

Land rent to Belle Corporation

-

-

-

-

1,518

-

-

1,518

Pre-opening costs

25

-

5

2,549

(7

)

1,541

-

4,113

Development costs

-

-

-

-

-

-

9,440

9,440

Depreciation and amortization

11,307

3,991

131,995

91,769

38,150

5,265

38,959

321,436

Share-based compensation

204

81

1,711

692

630

76

11,285

14,679

Property charges and other

42

(361

)

3,877

8,542

3,356

-

1,750

17,206

Adjusted EBITDA

23,766

11,277

479,335

191,216

143,358

12,575

(56,845

)

804,682

Corporate and Other expenses

-

-

-

-

-

-

56,845

56,845

Adjusted Property EBITDA

$

23,766

$

11,277

$

479,335

$

191,216

$

143,358

$

12,575

$

-

$

861,527


Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net (Loss) Income Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands of U.S. dollars)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

(As adjusted)(3)

(As adjusted)(3)

Net (loss) income attributable to Melco Resorts & Entertainment Limited

$

(368,129

)

$

101,780

$

(732,177

)

$

221,844

Net loss attributable to noncontrolling interests

(58,683

)

(2,490

)

(100,686

)

(542

)

Net (loss) income

(426,812

)

99,290

(832,863

)

221,302

Income tax (credit) expense

(1,886

)

1,298

(6,726

)

4,989

Interest and other non-operating expenses, net

57,908

107,375

318,873

172,744

Property charges and other

18,892

9,774

30,564

17,206

Share-based compensation

12,476

8,256

21,084

14,679

Depreciation and amortization

155,174

162,417

317,439

321,436

Development costs

6,372

3,920

19,802

9,440

Pre-opening costs

226

603

621

4,113

Land rent to Belle Corporation

785

762

1,562

1,518

Payments to the Philippine Parties

(2,771

)

23,203

4,935

37,255

Adjusted EBITDA

(179,636

)

416,898

(124,709

)

804,682

Corporate and Other expenses

23,376

31,082

43,760

56,845

Adjusted Property EBITDA

$

(156,260

)

$

447,980

$

(80,949

)

$

861,527


Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Room Statistics(4):

Altira Macau

Average daily rate (5)

$

165

$

177

$

176

$

178

Occupancy per available room

21

%

99

%

39

%

99

%

Revenue per available room (6)

$

35

$

176

$

69

$

177

City of Dreams

Average daily rate (5)

$

279

$

206

$

236

$

206

Occupancy per available room

6

%

98

%

28

%

98

%

Revenue per available room (6)

$

18

$

202

$

66

$

201

Studio City

Average daily rate (5)

$

160

$

132

$

139

$

133

Occupancy per available room

5

%

100

%

24

%

100

%

Revenue per available room (6)

$

8

$

132

$

34

$

133

City of Dreams Manila

Average daily rate (5)

$

314

$

182

$

204

$

173

Occupancy per available room

26

%

98

%

85

%

98

%

Revenue per available room (6)

$

81

$

178

$

174

$

170

Other Information(7):

Altira Macau

Average number of table games

101

104

94

104

Average number of gaming machines

91

171

114

170

Table games win per unit per day (8)

$

2,654

$

17,125

$

6,881

$

20,209

Gaming machines win per unit per day (9)

$

186

$

235

$

133

$

220

City of Dreams

Average number of table games

515

518

475

518

Average number of gaming machines

398

823

473

822

Table games win per unit per day (8)

$

2,936

$

19,184

$

8,594

$

17,812

Gaming machines win per unit per day (9)

$

40

$

528

$

268

$

528

Studio City

Average number of table games

291

293

273

293

Average number of gaming machines

419

985

570

980

Table games win per unit per day (8)

$

183

$

12,812

$

3,086

$

12,660

Gaming machines win per unit per day (9)

$

48

$

225

$

124

$

218

City of Dreams Manila

Average number of table games

301

306

299

304

Average number of gaming machines

2,273

2,271

2,289

2,256

Table games win per unit per day (8)

$

1,506

$

5,672

$

3,795

$

5,218

Gaming machines win per unit per day (9)

$

59

$

248

$

183

$

255

Cyprus Operations

Average number of table games

25

38

35

38

Average number of gaming machines

281

357

419

264

Table games win per unit per day (8)

$

1,008

$

2,136

$

1,800

$

2,211

Gaming machines win per unit per day (9)

$

594

$

451

$

423

$

441


(4)

Room statistics exclude rooms that were temporarily closed or provided to staff members during the three and six months ended June 30, 2020 due to the COVID-19 outbreak

(5)

Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms

(6)

Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

(7)

Table games and gaming machines that were not in operation during the three and six months ended June 30, 2020 due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded

(8)

Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

(9)

Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis