Melco Resorts & Entertainment reported a net loss attributable to the company of US$243.5 million in the three months to 30 September 2022, representing an 11th straight quarter of significant losses and wider than the US$233.2 million loss recorded in 3Q21.
Melco’s performance was unsurprising given the well-documented challenges facing Macau due to ongoing pandemic-related travel restrictions across greater China, although the Q3 result was slightly improved from Q2 thanks to City of Dreams Manila.
The company’s Philippines integrated resort saw operating revenues more than double year-on-year to US$102.6 million, while Adjusted EBITDA grew fourfold from US$11.7 million in 3Q21 to US$41.4 million in 3Q22. Manila’s casinos had been closed for half of the prior year period.
In Macau, operating revenues at Melco’s flagship property City of Dreams Macau fell 73.7% year-on-year and 31.8% sequentially to US$66.4 million, with an Adjusted EBITDA loss of US$40.2 million.
Studio City saw its operating revenues fall 68.7% year-on-year and 28.7% compared with 2Q22 to US$25.6 million, with an Adjusted EBITDA loss of US$31.5 million, while Altira Macau fell to an Adjusted EBITDA loss of US$12.9 million on a 76.5% year-on-year decline in revenues to just US$2.4 million.
Mocha Clubs also saw revenues decline from US$22.2 million in the June quarter to US$18.8 million, although there was better news in Cyprus where operating revenues at Cyprus Casinos grew by 22.8% to US$24.8 million.
Lawrence Ho, Chairman and CEO of Melco Resorts, 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. We are also cautiously optimistic that the granting of e-visas and group visas, which commenced on 1 November 2022, will lead to a gradual increase in visitation.
“In the Philippines, gaming volumes continue to track towards pre-pandemic levels. We expect to see further growth as travel restrictions around Asia continue to be lifted and travel returns to more normal levels. Gaming volumes in Cyprus exceeded pre-pandemic levels driven by further easing of COVID-19 related restrictions in the third quarter.”
Ho added the company remains hopeful of opening Studio City Phase 2 in stages, starting from the second quarter of 2023.
