Casino operator Melco Resorts & Entertainment Ltd saw its net loss narrow to US$16.3 million in the third quarter, compared with a net loss of US$23.4 million in the preceding quarter, according to the firm’s quarterly results filed in the United States on Tuesday. The company had reported a US$243.8-million loss in the prior-year quarter.
Total operating revenue for the three months to September 30 was US$1.02 billion, up 7.6 percent from the second quarter this year. The figure was up 321.8 percent from a year earlier, said the company.
Operating income for the third quarter of 2023 was US$94.7 million, compared with an operating loss of US$198.5 million in the prior-year period. The figure was up 47.3 percent sequentially.
Melco Resorts generated third-quarter adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$280.6 million, 5.0-percent higher sequentially. It compared with negative adjusted property EBITDA of US$34.9 million in the third quarter of 2022.
In Tuesday’s filing, the casino firm said the increase in total operating revenues in the quarter to September “was primarily attributable to the improved performance in all gaming segments and non-gaming operations” following the relaxation of Covid-19 related restrictions in Macau early this year.
Other factor contributing to the improved performance during the reporting period was the “opening” of Phase 2 of its majority-owned Studio City complex in Cotai.
In April, Melco Resorts had an opening for a new hotel tower at Studio City, called the Epic Tower, and an indoor water park. The W Macau hotel tower, also part of Studio City’s Phase 2, opened in early September, offering 557 guest rooms.
“Macau’s recovery continued to grow from strength to strength into the third quarter of 2023, especially during the summer months, with our property visitation and casino player hours benefiting from this growth,” said Lawrence Ho Yau Lung, the group’s chairman and chief executive, in prepared remarks accompanying the results.
Mr Ho also said the company had a “solid performance” during the autumn Golden Week. The first six days of October formed part of an eight-day holiday in mainland China.
“We saw a robust recovery during the remainder of October,” added the Melco Resorts CEO.“Both gaming and non-gaming segment revenues improved, reinforced by our commitment to invest in world-class entertainment and enhance our non-gaming amenities,” he added.
Mass strength, CoD Mediterranean tweak
At the group’s Macau flagship property, City of Dreams (pictured), total operating revenue in the third quarter this year was US$506.2 million, flat sequentially. It compared with US$66.4 million a year earlier.
The property’s adjusted EBITDA however fell by 4.5 percent quarter-on-quarter, to US$153.9 million. But that compared with negative adjusted EBITDA of US$40.2 million in the third quarter of 2022.
VIP rolling chip volume at the property was US$4.43 billion for the three months ended September 30, down 23.1 percent sequentially. Rolling chip volume was US$332.2 million in the third quarter of 2022.
Mass-market table games drop at City of Dreams increased by 6.5 percent quarter-on-quarter, to US$1.32 billion in the third quarter of 2023. It was US$133.5 million in the prior-year period.
In the July to September period, total operating revenue at Studio City was US$277.7 million, compared with US$236.0 million in the preceding quarter, and US$25.6 million a year earlier. The property generated adjusted EBITDA of US$67.7 million in the third quarter, compared with US$41.1 million in the preceding quarter, and negative adjusted EBITDA of US$31.5 million a year earlier.
At City of Dreams Manila, a casino resort in the Philippine capital, total operating revenues stood at US$124.9 million, up 7.3 percent quarter-on-quarter, and 21.7-percent higher than a year ago.
The complex generated adjusted EBITDA of US$48.7 million in the three months to September 30, compared with adjusted EBITDA of US$47.0 million in the preceding quarter, and US$41.4 million in the comparable period of 2022.
VIP rolling chip volume at that property was US$374.6 million in the third quarter of 2023 versus US$520.2 million in the preceding quarter, and US$513.2 million a year earlier. Mass-market table games drop increased to US$214.1 million, compared with US$194.5 million in the previous quarter, and US$153.3 million in the third quarter of 2022.
“City of Dreams Manila continues to generate solid earnings with a strong margin profile,” stated Mr Ho in his prepared remarks.
The company also recently opened City of Dreams Mediterranean, in the Republic of Cyprus. The performance of that operation however is being negatively impacted by the conflict between Israel and Palestinian group Hamas.
“After a successful opening, City of Dreams Mediterranean has been impacted by the conflict” involving Israel, remarked Mr Ho. “Our teams are working on realigning our marketing strategy.”
Melco Resorts continues to operate three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean, collectively called the “Cyprus Casinos”.
Total operating revenues at the Cyprus Casinos for the quarter ended September 30 were US$53.4 million, compared with US$24.8 million in a year ago. Cyprus Casinos generated adjusted EBITDA of US$7.2 million in the third quarter of 2023, up 7.5 percent year-on-year, and a 4.3-percent increase sequentially.
Dec 01, 2023Fresh event space in casino resorts is welcomed by Macau’s meetings, incentives, conferences and exhibitions (MICE) sector, but visitors’ reception on arrival in the city, high hotel prices, and...
Dec 01, 2023
”We committed to the government to provide a full business idea and plan for Phase 1b around 12 months after the casino opens, therefore, probably early 2025”
President of the Mohegan Inspire Entertainment Resort in South Korea