Melco Resorts reports large revenue rise

Melco Resorts and Entertainment has reported its unaudited financial results for the third quarter of 2023, indicating a big increase in revenue.

Total operating revenues for the third quarter of 2023 were US$1.02bn, representing an increase of approximately 321 per cent from the $241.8m for the comparable period in 2022.

The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of Covid-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2.

Operating income for the third quarter of 2023 was $94.7m, compared with an operating loss of $198.5m in the third quarter of 2022.

Melco generated adjusted property EBITDA(1) of US$280.6 million in the third quarter of 2023, compared with negative Adjusted Property EBITDA of US$34.9 million in the third quarter of 2022.

Net loss attributable to Melco Resorts and Entertainment for the third quarter of 2023 was $16.3m, or $0.04 per ADS, compared with $243.8m, or $0.53 per ADS, in the third quarter of 2022.

The net loss attributable to non-controlling interests was $20.5m and $42.8m during the third quarters of 2023 and 2022, respectively, all of which were related to Studio City, City of Dreams Manila and City of Dreams Mediterranean.

Lawrence Ho, chairman and CEO, commented: “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.

“Our market leading design standards were recognized by Prix Versailles with Morpheus being the only hotel in Macau to have the honour of being included as one of the World’s Most Beautiful Hotels.

“City of Dreams Manila continues to generate solid earnings with a strong margin profile. On the other hand, after a successful opening, City of Dreams Mediterranean has been impacted by the conflict in Israel. Our teams are working on re-aligning our marketing strategy.

“Food waste reduction continues to be a key focus of our sustainability strategy with plate waste being the most challenging area to address.

“With clean plate awareness campaigns taking place almost daily in our staff dining areas at City of Dreams Manila and the implementation of AI technology, plate waste per cover has reduced by more than 60 per cent.”