Giant casino operator Melco Resorts and Entertainment, with locations in Macau, the Philippines and the developing City of Dreams Mediterranean in Cyprus, saw its operating revenues in Q3 2020 fall 85 per cent.
The group’s revenues were US$0.21bn, compared with $1.44bn in the previous year. The decrease, said the company, was attributable to the Covid-19 pandemic. It had a loss for the quarter of $275m compared with an income of $175.2m.
CEO Lawrence Ho said: “Covid and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance.
“Despite that, our integrated resorts experienced a moderate recovery in business levels during the third quarter, benefiting from the partial resumption of casino operations in Cyprus and Manila, as well as the gradual resumption of visa issuances by the mainland Chinese authorities under the Individual Visit Scheme.
He added: “We continue to prudently manage our balance sheet. Aided by the issuance of a series of new senior notes and the Studio City private share placements (but excluding Melco’s subscription therein of approximately US$280m), as of September 30, 2020, we had cash on hand of approximately US$1.9bn and undrawn revolver capacities of approximately US$1.7bin.
“Melco remains committed to its global development programme. Construction on the expansion of Studio City is progressing. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space.
“In Europe, we are developing City of Dreams Mediterranean that, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, a 1,500-seat amphitheatre and approximately 10,000sq.m of MICE space.
“Turning to Japan, I want to highlight our unwavering commitment to bring to the country the best integrated resort the world has ever seen.
“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, a culture of exceptional guest service and a continuing commitment to employee development puts Melco in a strong position to help Japan realise the vision of developing a world-leading resort with a unique Japanese touch.
“The process in Japan has been substantially delayed and remains complex. We will continue to be patient as we evaluate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.”