Melco sees 85% drop in revenue in Q3

The company blamed the Covid-19 pandemic for losses.
The company blamed the Covid-19 pandemic for losses.

Total operating revenues were US$210m for the period.

Macau.- Melco Resorts & Entertainment has reported an 85 per cent drop in revenue year-on-year for the third quarter (Q3) of 2020. 

Total operating revenues reached US$210 million, down from US$1.44 billion for the comparable period in 2019.  

City of Dreams saw operating revenues of US$91.4 million in Q3, down from US$787.3 million in the same period of 2019.  

The company said: “The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the Covid-19 pandemic, which resulted in a significant decline in inbound tourism in the third quarter of 2020.” 

Operating loss for the third quarter reached US$275.0 million. EBITDA was negative US$76.7 million.  

Lawrence Ho, chairman and chief executive officer (CEO), said: “Covid-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance.

“Despite that, our integrated resorts experienced a moderate recovery in business levels during the third quarter, benefiting from the partial resumption of casino operations in Cyprus and Manila, as well as the gradual resumption of visa issuances by the Mainland Chinese authorities under the Individual Visit Scheme (IVS).” 

The CEO said the company has managed its balance sheet aided by the issuance of a series of new senior notes and by Studio City’s private share placements.

Ho confirmed the progress of the expansion of Studio City and said the integrated resort will hold 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a cineplex, restaurants and MICE space.  

However, the company admitted that the Covid-19 outbreak had impacted construction and that additional time will be needed.

Finally, the chairman said the firm remains committed to building the best integrated resort (IR) in the world in Japan, affirming once again that it will be involved in one of the bids for three IR licences in the country next year.

Ho said: “The process in Japan has been substantially delayed and remains complex. We will continue to be patient as we evaluate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.” 

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