Melco revenue down in Q3 due to lower VIP

During the third quarter, Melco Resorts’ VIP gross gambling revenue saw a decline and dragged the companies’ figures down.

Macau.- Melco Resorts & Entertainment revealed its financial results for the third quarter and showed a revenue and profit decline after a poor performance by VIP segment. According to the latest report, net revenue was down 11% to €1.2 billion, also affected by the current accounting policies (under the previous ones it’d been just a 5% drop).

The company informed that adjusted property EBITDA also dropped 26% to €259 million compared to €350 million during the same period last year. The decline was due to the VIP segment underperforming during the quarter, the company said.

Net income was also down to €8.4 million, or €0,017 per ADS, compared with €101.5 million, or €0,21 per ADS in 2017.

“The opening of Morpheus only marks the beginning of the relaunch of City of Dreams. On top of that, we are upgrading our VIP gaming spaces that are expected to open over the next six months. We will also commence the rolling refurbishment of the Nüwa after Chinese New Year 2019 and the redevelopment of the Count:Down in the second half of 2019 into a new, luxurious, ultra-cool hotel – Libertine,” Chairman and CEO Lawrence Ho said. He also explained the company plans to expand and upgrade its presence after the opening of the Dame Zaha Hadid-designed Morpheus hotel.