Melco Resorts & Entertainment Reports Mixed Q1 Earnings, Sees Recovery In Macau

• Melco Resorts & Entertainment Ltd (NASDAQ: MLCO) reported first quarter 2023 sales growth of 51% Y/Y to $716.5 million Wednesday, missing the consensus of $892.0 million. 
• The increase in total operating revenues was led by improved performance in all gaming segments on COVID-19 restrictions relaxed in Macau.
• Revenues from Casino rose 52% Y/Y, Rooms increased 60% Y/Y, and Food and Beverage grew 51% Y/Y.
• The company witnessed no profit/loss in first quarter 2023 compared to an operating loss of $(136) million last year.
• Adjusted Property EBITDA rose significantly to $191 million from $56 million a year ago.
• Adjusted loss per ADS was $(0.139) versus the consensus loss of $(0.310).
• The company held $1.46 billion in cash and bank balance.
• "We have seen a very encouraging start to the recovery in Macau during the first quarter of 2023, following the relaxation of border restrictions in early January. We continued to see improving momentum into April and Golden Week in May, with mass market table games drop and mass gross gaming revenue during the Golden Week period exceeding the same period in 2019," said Chair and CEO Lawrence Ho.
• MLCO Price Action: Melco shares are trading lower by 4.67% at $11.84 on the last check Wednesday.

Photo: Melco Studio City Casino Resort in Macau, courtesy Melco