Melco continues to see COVID impact as Q3 revenue down 85%
Melco Resorts & Entertainment Limited reported $212.9m in operating revenue for Q3 2020. It’s an 85% drop from $1.44bn for the same period in 2019. Operating loss was $275m, compared to an operating income of $175.2m for Q3 last year.
Adjusted Property EBITDA was negative $76.7m against positive $418.2m for the same period last year. Net loss was $331.6m, compared to net income of $83.2m in 2019.
Operating revenue for the City of Dreams for Q3 was $91.4m, an 88% drop from $787.3m for the same period in 2019. The property had a negative Adjusted EBITDA of $49.2m. Rolling chip volume was $1.86bn, while last year reported $17.18bn. Operating revenue for City of Dreams Manila was $43.4m; and Altira Macau earned $11m in revenues.
The decrease in performance was due to the COVID-19 pandemic, which resulted in a significant decline in inbound tourism. Lawrence Ho, the chairman and CEO, said the group’s “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 (IVS).”
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 $280m), as of September 30 2020, we had cash on hand of approximately $1.9bn and undrawn revolver capacities of approximately $1.7bn.”
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