Melco Resorts Finance Ltd, a unit of Melco Resorts and Entertainment Ltd, said in a Wednesday filing in the United States that combined gross gaming revenue (GGR) in Macau during October and November “increased by approximately 94 percent,” compared to the third quarter of 2020.
The statement did not give a monetary value for that improved GGR, or clarify what properties were included in the calculation.
In the third quarter, Melco Resorts’ Macau flagship property, City of Dreams, reported total operating revenues of US$91.4 million, compared to US$787.3 million in the third quarter of 2019.
Total non-gaming revenue at City of Dreams in the three months to September 30, was US$18.0 million, compared with US$104.2 million in the third quarter of 2019.
The October and November trading update came, as Melco Resorts Finance announced the pricing of an offering of 5.375-percent senior unsecured notes due in 2029.
The offering consists of US$250 million in aggregate principal amount, priced at 103.25 percent of the principal amount, plus accrued interest from December 4, 2020 up to, but not including, the issue date of the additional notes.
Melco Resorts Finance said it would use the money raised – together with cash on hand if applicable – for repayment of a principal drawn via a revolving credit facility relating to a senior facilities agreement contracted by MCO Nominee One Ltd, a subsidiary of Melco Resorts Finance.
As of November 30, the total principal amount of Melco Resorts Finance’s outstanding indebtedness was US$4.1 billion, observed the Wednesday statement.
At the same date, the group held cash and cash equivalents of US$871.9 million, and restricted cash of US$300,000.
In its Wednesday filing, Melco Resorts Finance stated that steps had been taken to “minimise cash outflow of non-essential items,” and there had been “rationalising” of the “capital expenditure programme, with deferrals and reductions, which benefits our balance sheet”.
Melco Resorts Finance added: “As a result of the implementation of these measures and reflecting a revenue mix based on our current results, we expect to achieve break-even,” in terms of adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) “upon reaching approximately 25 percent to 30 percent of our historical gross gaming revenues run-rate”.
The group’s adjusted property EBITDA were negative in the third quarter, to the tune of nearly US$76.7 million, compared to positive adjusted property EBITDA of nearly US$418.2 million in the third quarter of 2019.
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