Melco Resorts & Entertainment’s recovery story stalled in the three months to 30 September 2021, with recent COVID-19 outbreaks in Macau and related border restrictions seeing the company slip to its biggest loss of 2021.
Melco’s US$233.2 million net loss was improved from the US$331.6 million loss recorded in 3Q20 but was wider than losses of US$232.9 million and US$185.7 million in 1Q21 and 2Q21 respectively.
That followed a 21.2% decline in group-wide revenues to US$446.4 million compared with the June quarter and 59.6% decline in Adjusted Property EBITDA to US$31.9 million
By comparison, Melco’s revenue in the third quarter of 2019, before the COVID-19 pandemic, was US$1.44 billion with Adjusted EBITDA of US$418.2 million.
“Continued travel restrictions and quarantine measures in Macau and the region negatively impacted our third quarter operating and financial performance,” said Melco Chairman and CEO, Lawrence Ho.
“To preserve our cash and liquidity, we continue to enforce strong cost control discipline in respect to both operating expenses and capital expenditures.
“Looking forward, we remain confident that pent-up demand for Macau remains intact and strong.”
Melco’s Q3 results included operating revenues of US$252.0 million at City of Dreams Macau of which US$177 million was generated by mass tables. Adjusted EBITDA was US$32.7 million.
Studio City recorded operating revenues of US$81.8 million with an Adjusted EBITDA loss of US$14.0 million while Altira Macau generated US$10.2 million in operating revenues and an Adjusted EBITDA loss of US$6.9 million.
In the Philippines, operating revenues at City of Dreams Manila were US$52.5 million with Adjusted EBITDA of US$11.7 million. Slots was the main growth story compared with recent quarters, generating US$29 million in revenue, while mass tables contributed US$23 million. VIP chipped in just US$2 million.
In Cyprus, where Melco operates three satellite casinos and a temporary facility near the site of its City of Dreams Mediterranean development, revenues were in line with the same period in 2020 but improved versus 2Q21 at US$20.2 million, generating Adjusted EBITDA of US$3.6 million.