Covid uncertainty may linger, says Melco group

Nov 30, 2022 Newsdesk Latest News, Macau, Top of the deck  

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Economic uncertainty linked to Covid-19 outbreaks is likely to linger “for at least the remainder of 2022”, said Melco Resorts Finance Ltd in its third-quarter report issued on Tuesday.

The entity is linked to casino operator Melco Resorts and Entertainment Ltd, which has seen a casino business it runs in Manila in the Philippines recover substantially since that nation exited Covid-19 lockdowns earlier this year. City of Dreams Manila had returned to full operational capacity by the first quarter this year, according to comments by Melco Resorts chairman Lawrence Ho Yau Lung.

But in Macau, where the firm runs in the Cotai district its flagship City of Dreams resort and the majority-owned Studio City, as well as the Altira Macau hotel casino in Taipa, business recovery has been choppy due to periodic travel curbs linked to China’s “dynamic zero Covid” strategy.

“Uncertainty around Covid-19 outbreaks is expected to continue for at least the remainder of 2022, with travel bans or restrictions, visa restrictions, and quarantine requirements being key factors impacting performance for the year,” stated Melco Resorts Finance.

Melco Resorts saw its net loss widen to US$243.8 million in the third quarter this year, mostly driven by the weak performance of the Macau market, compared with a group-wide net loss of US$233.2 million a year earlier. The net loss was nonetheless down 3.1 percent from the second quarter this year.

Long-term net debt at Melco Resorts Finance was just over US$5.29 billion as of September 30, up 18.4 percent relative to December 31, 2021’s figure of slightly more than US$4.47 billion, noted Tuesday’s statement.

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