Melco Resorts and Entertainment is one of the leading casino operators which oversees the operation of as many as six gambling and entertainment facilities in Macau and Manila. The wide popularity of the locations could be easily seen by the revenue rates generated over the span of the first quarter of 2018, which were recently issued publicly.
The casino developer and operator which manages some of the most recognizable casino resorts in the Asian region shed light to its operation over the first three months of this year and made it clear that the performance of the company has been maintaining its steady pace since the beginning of 2018. As it became clear the performance of the casino developer surpassed the initial expectations for Melco and the reason for this improvement could be found within the mass-market segment of the gambling hub Macau.
Many casino operators are currently working on their more family-friendly offerings and making sure tourists make a good use not only of the casino venue adjacent to the integrated resort, but also of the other locations providing pleasant pastime, such as the hotel itself, restaurants, bars, and sopping offerings on site. They are not the typical high roller players and thus they provide a more steady flow of income to the given resort. This is being done because attracting customers of the mass-market segment has the potential to generate a steadily growing income for the casino operator.
Improvement in the Revenue Rates
Boosted by this good performance of its facilities, the revenue of Melco saw a 2.8-percent jump when compared to the first quarter of 2017. This means that the company managed to generate some $1.31 billion for the first three months of this year and this is defined as a strong jump in the right direction.
Even though the situation might seem quite positive, the operator made it clear that there have been other factors impacting the revenue rates. Higher commissions have been reported which have come as a result of the recently issued new revenue recognition standard presented by the Financial Accounting Standards Board.
When it comes to the operating income of the casino developer and operator over the first three months of 2018, there could be seen a 39.5-percent surge when compared to the company’s performance over the first three months of 2017, which resulted in a total of $221.1 million amassed. During the same period of this year, the adjusted property earnings before interest, taxation, depreciation, and amortization reached some $401.8 million which amounts to a jump of 13.7 percent.
In addition to the positive reporting of revenue, the casino developer also announced its plans to completely redevelop its City of Dreams Macau as well as Studio City properties. The estimations claim that this project is going to need an investment amounting to some $100 million which will see the renovation and improvement of the facilities, making them ready for welcoming new guests and customers in the foreseeable future.