Melco Resorts has reported that operating revenue for the third quarter declined by 45.8 per cent year-on-year.
Macau.- Melco Resorts & Entertainment has shared its financial results for the third quarter of the year. Operating revenues was US$241.8m, down 46 per cent from US$446.4m for the comparable period in 2021. The company attributed the decrease to the government-mandated temporary closure of Macau’s casinos in July.
The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was negative US$34.9m compared with US$ 31.9m in the third quarter of 2021. Net loss attributable to Melco Resorts & Entertainment Limited widened from US$233.2m to US$243.8m. The net loss attributable to noncontrolling interests was US$42.8m, all related to Studio City, City of Dreams Manila and Cyprus Operations.
Lawrence Ho Yau Lung, the group’s chairman and chief executive said: “Our results for the third quarter of 2022 were impacted by the casino closures in July and the travel restrictions imposed across mainland China and Macau.
“In July, the Macau government implemented preventative measures against the pandemic and our casinos were closed for 12 days.
“Following the re-opening, the operating environment remained challenging given the continuing tight travel restrictions, but we are encouraged by the recent re-opening of Macau to international tourists from designated countries as well as the increase in visitation over the October Golden Week.
“We are also cautiously optimistic that the granting of e-visas and group visas, which commenced on November 1, 2022, will lead to a gradual increase in visitation.”
He said construction of Studio City Phase II was progressing on schedule. “We will monitor the market closely to determine the appropriate time to open and currently anticipate the opening to be conducted in stages beginning in the second quarter of 2023,” he said.
City of Dreams Macau third quarter results
Operating revenues at City of Dreams for the third quarter of the year were US$66.4m. The venue generated negative Adjusted EBITDA of US$40.2m, compared with positive US$32.7m in the third quarter of 2021.
The year-over-year decline in Adjusted EBITDA was primarily a result of softer performance in the rolling chip and mass market table games segments, as well as non-gaming operations. Rolling chip volume was US$332.2m while the rolling chip win rate was 4.53 per cent in the third quarter of 2022 versus 3.46 per cent in the third quarter of 2021.
Mass-market tabletop games decreased to US$133.5m. The percentage of mass market table games held in the second quarter was 28.6 per cent. The gaming machine handle was US$137.4m, compared to US$376.9m in the third quarter of 2021. The slot win rate was 4.3 per cent.
City of Dreams’ non-gaming revenue was US$19.3m, compared to US$39.5m in the second quarter of 2021.
Altira Macau posts operating revenue of US$2.4m
Operating revenue at Altira Macau declined from US$10.2m to US$2.4m year-on-year in the third quarter of the year. The casino generated negative adjusted EBITDA of US$12.9m, compared with negative US$6.9m in the second quarter of 2021.
In the mass market table games segment, the drop was US$18.4m versus US$28.7m in the third quarter of 2021. The gaming machine handle was US$33.2m, compared with US$59.1m in the third quarter of 2021. Non-gaming revenue was US$1.3m.