Melco Resorts & Entertainment Limited reported a net loss of US$16.3 million for the three months to 30 September 2023, narrowed from a US$243.8 million loss a year earlier and from a US$23.4 million loss in the June quarter – primarily due to the improved performance of the company’s Macau resorts.
The Q3 result was driven by a 321% year-on-year increase in group-wide operating revenues to US$1.02 billion, which was also up from US$947.9 million in Q2. Of this, US$812 million was gaming revenue and US$205 million non-gaming, while Adjusted EBITDA of US$280.6 million reversed a US$35 million Adjusted EBITDA loss in 3Q22 and was improved on US$267.3 in 2Q23.
In Macau, a combination of lower rolling chip volume and lower hold in the VIP segment impacted results at flagship property City of Dreams, with total GGR down 4% sequentially to US$561 million, despite mass tables and slots revenues both improving on Q2. As a result, Adjusted EBITDA fell 5% to US$154 million.
At Studio City, GGR grew 20% sequentially to US$256 million, of which mass tables GGR contributed US$222 million – up 21% quarter-on-quarter and more than 1,300% year-on-year. Adjusted EBITDA grew by 65% compared with Q2 to US$68 million.
Altira, meanwhile, saw GGR down 4% quarter-on-quarter to US$30 million with Adjusted EBITDA falling to a US$4 million loss.
In the Philippines, City of Dreams Manila saw GGR grow by 21% year-on-year and 10% quarter-on-quarter to US$138 million, with a high 6.48% win rate in VIP overcoming a decline in VIP turnover. VIP GGR came in at US$24 million, up 50% sequentially, while mass tables grew by 4% to US$3 million and slots by 5% to US$50 million.
And at City of Dreams Mediterranean, the first full quarter of operations generated GGR of US$44 million of which US$24 million came from slots and US$20 million from mass tables. Adjusted EBITDA was US$7 million.
Melco Chairman and CEO Lawrence Ho noted that the company’s European venture has been impacted by the conflict in Israel.
“Our teams are working on re-aligning our marketing strategy,” he said.
More generally, Ho stated, “Macau’s recovery continued to grow from strength to strength into the third quarter of 2023, especially during the summer months, with our property visitation and casino player hours benefiting from this growth.
“We had solid performance over the October Golden Week and we saw a robust recovery during the remainder of October. Both gaming and non-gaming segment revenues improved, reinforced by our commitment to invest in world class entertainment and enhance our non-gaming amenities.”
