Melco Resorts & Entertainment saw its revenue grow by 3 percent to US$1.3 billion in the three months to 31 March 2018.
Adjusted Property EBITDA increased 14 percent year-on-year to US$402 million, “mainly attributable to higher contribution from Studio City and Altira Macau driven by increased gross gaming revenues in all gaming segments,” the company said.
Net revenue at City of Dreams declined 7.6 percent in 1Q18 to US$640.5 million due to a fall in rolling chip volume from US$12.6 billion in 1Q17 to US$11.1 billion. Mass market table games drop increased by 10.3 percent to US$1.2 billion while slot machine handle decreased slightly to US$1 billion.
City of Dreams generated Adjusted EBITDA of US$208.0 million for the quarter compared with Adjusted EBITDA of US$213.5 million in 1Q17.
The City of Dreams results were offset by improved performance at Studio City which saw net revenue jump 32.6 percent to US$368.4 million. Studio City generated Adjusted EBITDA of US$110.1 million in the first quarter of 2018 compared with Adjusted EBITDA of US$67.8 million in the same period last year, an increase of 62.4 percent.
VIP performed strongly, with rolling chip volume totaling US$6.6 billion, up from US$3.6 billion, while win rate also increased to 2.7 percent from 2.4 percent in 1Q17. Mass market table games drop increased 25.7 percent to US$825.2 million in the first quarter with slot machine handle rising from US$497.4 million to US$581.6 million.
Altira Macau enjoyed a 10.4 percent increase in net revenue to US$120.4 million and a 386 percent increase in Adjusted EBITDA to US$18 million due primarily to rolling chip volume growing from US$4.1 billion to US$5.6 billion. Mass market table game drop grew 39.7 percent to US$139.3 million.
Melco Resorts Chairman and CEO Lawrence Ho said the company would continue to focus on upgrades to Studio City.
“At Studio City, we are embarking on a series of property upgrades to refine the entertainment offerings and improve accessibility into the resort, which we believe will facilitate the continuing ramp up that the property has experienced over the past several quarters,” Ho said.
Ho also said that Melco is also set to soon launch its new luxury hotel Morpheus at City of Dreams.