Melco revenues decline in second quarter of 2018

MANILA, Philippines — Melco Resorts and Entertainment (Philippines Corp.), the company behind City of Dreams Manila, reported lower net revenues in the second quarter to $173.9 million from $176.2 million a year ago.

The decline was largely due to higher commissions which were reported as reduction in revenue upon the adoption of new reporting standards.

But this was partially offset by improved gross gaming revenues, the company said.

City of Dreams Manila, meanwhile, reported higher EBITDA during the quarter of $87.3 million compared to $62.8 million a year ago on the back of better performance in all gaming segments.  

In terms of gaming segments, rolling chip volume amounted to $3 billion, down from $3.3 billion a year ago, while mass market table games drop increased to $196.9 million from $169.8 million.

Gaming machine handle for the second quarter reached $855.9 million compared to $759 million a year earlier.

On the other hand, total non-gaming revenue at City of Dreams grew to  $29.2 million from $28.1 million.

Melco adopted the new revenue standards using the modified retrospective method from Jan. 1, 2018.

Under the previous basis before the adoption of the new revenues standard, second quarter net revenue at City of Dreams Manila would have been $191 million, up eight percent from the previous year.

City of Dreams is the second integrated casino resort to open at the 100-hectare Entertainment City of the Philippine Amusement and Gaming Corp. in the cities of Parañaque and Pasay.

This followed the opening of Enrique Razon’s Solaire Resort & Casino. The third player, Okada Manila also opened in 2016.