Melco Posts Huge loss at City of Dreams Manila in Second Quarter

Melco Resorts has reported a Php2.41 billion (US$49.4 million) loss for its Philippines integrated resort, City of Dreams Manila, in the second quarter of 2020, from April 1 to June 30. This is mainly because of the “temporary closures of business and imposition of prohibition measures” across Manila as a result of COVID-19 restrictions.

The company reported a net profit of Php1.14 billion (US$23.4 million) over the same period in 2019.

The company press release said: “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 press release also provided details of break down of the fall in revenue. The facility’s rolling chip volume of Php7.3 billion (US$149.8 million) in 2Q20 compared with Php98.8 billion (US$2.03 billion) in the three months to 30 June 2019, with rolling chip win rate dropping from 5.21% to 3.38%.

Mass market table games drop was Php400 million (US$8.2 million), down from Php10 billion (US$205.2 million) in 2Q19, with hold also falling from 30.4% to 24.3%. Gaming machine handled fell from Php49 billion (US$1.0 billion) in the second quarter of 2019 to just Php1.5 billion (US$30.8 million).