Melco Resorts and Entertainment suffered severely in the third quarter, with operating revenues dropping by 45.8 per cent year-on-year to US$241.8 million (MOP 1.95 billion). The gaming operator, which runs City of Dreams, Studio City, Altira Macau and the Mocha slot machine parlours, attributed the negative results to cross-border travel restrictions and the closure of its casinos in July.
Melco generated negative Adjusted Property EBITDA of US$34.9 million in the third quarter of 2022, compared with the figure in the same quarter last year, which stood at positive US$31.9 million.
Between July and September Melco’s net loss grew to US$243.8 million (MOP 1.97 billion), up from US$233.2 million (MOP 1.88 billion) in the third quarter of 2021.
Chairman and CEO Lawrence Ho commented: “Our results for the third quarter were impacted by the casino closures in July and the travel restrictions imposed across mainland China and Macao. In July, the Macao government implemented preventative measures against the pandemic and our casinos were closed for 12 days.”
Ho said that since August, while business has improved, it remains constrained by pandemic travel restrictions. “Following the re-opening, the operating environment remained challenging given the continuing tight travel restrictions,” he said. Ho added that he was encouraged by Macao’s reopening to international tourists from designated countries, who still need to undergo a compulsory “7+3” days of quarantine and self-health management.
National Day Golden Week also showed positive signs and Ho said he is “optimistic that e-visas and group visas, which started this month, will lead to a gradual increase in visitation.”
Operating revenues at City of Dreams took a dive from US$252 million in the third quarter of 2021 to US$66.4 million in the third quarter of this year.
Total operating revenues at Altira Macau were US$2.4 million compared to US$10.2 million in the third quarter of 2021. Studio City notched up US$25.6 million in operating revenues, well below US$81.8 million a year ago.
The Mocha slot machine parlours had a better time of it, dropping from US$22.2 million in the third quarter of 2021 to US$18.8 million this year.