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Melco Resorts (MLCO) Q2 Earnings Top Estimates, Revenues Lag
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Melco Resorts & Entertainment Limited (MLCO - Free Report) reported mixed second-quarter 2020 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same.
The company reported adjusted loss per share of 72 cents, narrower than the Zacks Consensus Estimate of a loss of $1.16. Notably, the company had reported adjusted earnings per share of 24 cents in the prior-year quarter.
Quarterly net revenues totaled $175.9 million, missing the consensus estimate of $269 million. Net revenues plunged 88% year over year, owing to dismal performance across all gaming segments and non-gaming operations on account of the coronavirus pandemic.
Let’s take a closer look at the quarterly results.
Property Performances
City of Dreams
Net revenues at City of Dreams were $105.4 million, down 86.7% year over year. Adjusted EBITDA was ($70.3) million, compared with adjusted EBITDA of $250.8 million in the prior year quarter. The deterioration was primarily due to dismal performance of all gaming segments and lower non-gaming revenues.
Rolling chip volumes totaled $2.03 billion, compared with $14.9 billion in the prior-year quarter. The rolling chip win rate was 6.13%, compared with 3.16% in the year-ago quarter.
Total non-gaming revenues at City of Dreams in the quarter were $12.8 million, compared with $98.4 million in the prior-year quarter.
Melco Resorts Entertainment Limited Price, Consensus and EPS Surprise
Net revenues at Altira Macau were $17 million, down 83.7% year over year. This segment generated adjusted EBITDA of ($19.4) million in the reported quarter, compared with the prior-year quarter’s $8.5 million.
Additionally, rolling chip volume was $0.37 billion, compared with $4.36 billion the prior-year quarter. The rolling chip win rate was 6.19%, compared with 2.95% in the prior-year quarter.
Meanwhile, total non-gaming revenues at Altira Macau totaled $1.4 million, compared with $6.6 million at the end of second-quarter 2019.
Mocha Clubs
Net revenues from Mocha Clubs were $23.2 million, down 19.7% year over year. Also, adjusted EBITDA of $4.4 million decreased 17% year over year. The gaming machine handle for the quarter under review was $496.2 million, down 18.6% year over year. The gaming machine win rate was 4.7% in the quarter, down 10 bps from the year-ago quarter.
Studio City
In the reported quarter, net revenues at this property totaled $10.9 million, compared with $328.9 million in the prior-year quarter. Also, adjusted EBITDA of ($42.3) compared unfavorably with EBITDA of $94.8 million at the end of the year-ago quarter.
While rolling chip volume totaled $0.23 billion, the rolling chip win rate was 0.17% in the quarter (at the low end of the guided range of 2.85-3.15%). Total non-gaming revenues at Studio City in the quarter under review were $7.6 million, down 79.4% year over year.
City of Dreams Manila
In the second-quarter, net revenues at City of Dreams Manila were $7.2 million, compared with $176.8 million. Adjusted EBITDA was ($22.6) million against $82.8 million reported in the prior-year quarter.
Rolling chip volume totaled $0.15 billion, down 92.1% from the year-ago quarter figure. However, the rolling chip win rate was 3.38%, compared with 5.21% in the year-ago quarter.
Total non-gaming revenues at City of Dreams Manila were $1.4 million, compared with $31.8 million at the end of second-quarter 2019.
Balance Sheet
Total cash and bank balances as of Jun 30, 2020 were $1.7 billion, including $25 million of restricted cash, which was primarily related to Studio City.
Total debt, net of unamortized deferred financing costs at the end of second-quarter 2020, was $4.75 billion. Capital expenditures in the second quarter grossed $82.5 million.
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Melco Resorts (MLCO) Q2 Earnings Top Estimates, Revenues Lag
Melco Resorts & Entertainment Limited (MLCO - Free Report) reported mixed second-quarter 2020 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same.
The company reported adjusted loss per share of 72 cents, narrower than the Zacks Consensus Estimate of a loss of $1.16. Notably, the company had reported adjusted earnings per share of 24 cents in the prior-year quarter.
Quarterly net revenues totaled $175.9 million, missing the consensus estimate of $269 million. Net revenues plunged 88% year over year, owing to dismal performance across all gaming segments and non-gaming operations on account of the coronavirus pandemic.
Let’s take a closer look at the quarterly results.
Property Performances
City of Dreams
Net revenues at City of Dreams were $105.4 million, down 86.7% year over year. Adjusted EBITDA was ($70.3) million, compared with adjusted EBITDA of $250.8 million in the prior year quarter. The deterioration was primarily due to dismal performance of all gaming segments and lower non-gaming revenues.
Rolling chip volumes totaled $2.03 billion, compared with $14.9 billion in the prior-year quarter. The rolling chip win rate was 6.13%, compared with 3.16% in the year-ago quarter.
Total non-gaming revenues at City of Dreams in the quarter were $12.8 million, compared with $98.4 million in the prior-year quarter.
Melco Resorts Entertainment Limited Price, Consensus and EPS Surprise
Melco Resorts Entertainment Limited price-consensus-eps-surprise-chart | Melco Resorts Entertainment Limited Quote
Altira Macau
Net revenues at Altira Macau were $17 million, down 83.7% year over year. This segment generated adjusted EBITDA of ($19.4) million in the reported quarter, compared with the prior-year quarter’s $8.5 million.
Additionally, rolling chip volume was $0.37 billion, compared with $4.36 billion the prior-year quarter. The rolling chip win rate was 6.19%, compared with 2.95% in the prior-year quarter.
Meanwhile, total non-gaming revenues at Altira Macau totaled $1.4 million, compared with $6.6 million at the end of second-quarter 2019.
Mocha Clubs
Net revenues from Mocha Clubs were $23.2 million, down 19.7% year over year. Also, adjusted EBITDA of $4.4 million decreased 17% year over year.
The gaming machine handle for the quarter under review was $496.2 million, down 18.6% year over year. The gaming machine win rate was 4.7% in the quarter, down 10 bps from the year-ago quarter.
Studio City
In the reported quarter, net revenues at this property totaled $10.9 million, compared with $328.9 million in the prior-year quarter. Also, adjusted EBITDA of ($42.3) compared unfavorably with EBITDA of $94.8 million at the end of the year-ago quarter.
While rolling chip volume totaled $0.23 billion, the rolling chip win rate was 0.17% in the quarter (at the low end of the guided range of 2.85-3.15%).
Total non-gaming revenues at Studio City in the quarter under review were $7.6 million, down 79.4% year over year.
City of Dreams Manila
In the second-quarter, net revenues at City of Dreams Manila were $7.2 million, compared with $176.8 million. Adjusted EBITDA was ($22.6) million against $82.8 million reported in the prior-year quarter.
Rolling chip volume totaled $0.15 billion, down 92.1% from the year-ago quarter figure. However, the rolling chip win rate was 3.38%, compared with 5.21% in the year-ago quarter.
Total non-gaming revenues at City of Dreams Manila were $1.4 million, compared with $31.8 million at the end of second-quarter 2019.
Balance Sheet
Total cash and bank balances as of Jun 30, 2020 were $1.7 billion, including $25 million of restricted cash, which was primarily related to Studio City.
Total debt, net of unamortized deferred financing costs at the end of second-quarter 2020, was $4.75 billion. Capital expenditures in the second quarter grossed $82.5 million.
Melco Resorts & Entertainment, which shares space with Boyd Gaming Corporation (BYD - Free Report) , Wynn Resorts, Limited (WYNN - Free Report) and Las Vegas Sands Corp. (LVS - Free Report) , carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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