Melco Resorts Q3 profit recovery: Melco Resorts & Entertainment Ltd., a multinational developer and operator of casino resorts, recovered from a US$16.3-million deficit in the third quarter of 2023 to turn a profit of about US$27.3 million in the three months ending September 30.
In comparison to the previous year, total operational revenues increased by 15.5% to almost US$1.18 billion. Through the United States, where the group lists its American depository shares, the corporation made the news on Tuesday.
Revenues from the company’s casino increased 16.3% annually to just under US$944.4 million.
Group operating expenses were slightly under US$1.04 billion, an increase of 12.4% year over year.
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Due “primarily to the repurchases of the 6.00 percent senior notes due 2025 issued by Studio City Finance Ltd,” the group’s total debt at the end of the reporting quarter was US$7.17 billion, down around US$57 million from the previous quarter.
As of September 30, there was about $3 billion in available liquidity, comprising cash and undrawn revolving credit lines.
In addition to City of Dreams Manila in the Philippines and City of Dreams Mediterranean in the Republic of Cyprus, Melco Resorts has casino complexes in Macau. It was revealed in April that the group would operate a casino at a resort project in Colombo, Sri Lanka.
The group’s adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 14.9% year over year to US$322.5 million in the third quarter.
During the quarter’s earnings call, management stated that the company was anticipating the second half of 2025 as the post-pandemic resumption of dividend payments.
In a note on Tuesday, Seaport Research Partners analyst Vitaly Umansky stated:“While Melco [Resorts] lost share in Macau, the share loss was better than expected and costs were kept in check leading to the EBITDA beat.”
He commented: “There was some hold benefit, but even with this, the numbers were better than estimated.”
Melco Resorts’ chairman and CEO, Lawrence Ho Yau Lung, was quoted as saying in prepared remarks regarding the trading in the three months leading up to September 30: “Our initiatives to activate areas throughout our properties and drive visitation are coming together.”
He went on to mention two important Macau properties: “We launched a revamped loyalty program, opened a new Signature Club premium slot area at City of Dreams, and a highly themed slot area called the Dragon Zone at Studio City, in partnership with Aristocrat Gaming.”
The CEO went on to say “We are enhancing accessibility into City of Dreams with a new light tunnel entrance which is complemented by live performances.“
“We expect to continue to unveil new and exciting projects to support the ongoing growth in Macau.”
According to Mr. Ho, “despite added competition, City of Dreams’ property EBITDA increased sequentially” in the Manila market, where City of Dreams Manila is one of several sizable casino resorts in the Entertainment City zone.
According to the CEO of Melco Resorts, in the Mediterranean market “City of Dreams Mediterranean and our satellite casinos in Cyprus continue to face challenges due to the conflicts in the region but have had solid increases in property EBITDA quarter-to-quarter.”
Total operational revenues for the three months ending September 30 at Macau’s City of Dreams were US$563.9 million, up from US$506.2 million in the same period last year.
Due mostly to “better performance in all gaming segments,” City of Dreams produced adjusted EBITDA of US$162.8 million in the third quarter of 2024 as opposed to US$153.9 million in the same period in 2023.
In the most recent reporting quarter, the property’s rolling chip volume was US$3.30 billion, up from US$4.43 billion in the third quarter of 2023. According to the company, the property’s rolling chip win rate increased from 2.48 percent in the third quarter of 2023 to 3.97 percent in the most recent quarter. That was higher than the 2.85 to 3.15 percent predicted rolling chip win rate range.
At Macau’s City of Dreams, the mass market table game drop grew to US$1.40 billion from US$1.32 billion in the third quarter of 2023. The percentage of mass market table games held was 32.3 percent, up from 32.1 percent in the same quarter last year.
For the three months ending September 30, City of Dreams Macau’s gaming machine handle was US$944.1 million, up from US$807.5 million in the same period last year. The win rate for gaming machines was 3.2 percent, down from 3.6 percent in the previous year.
At Macau’s City of Dreams, total non-gaming revenue was US$78.7 million, up from US$73.6 million in the third quarter of 2023.
In Macau, Studio City’s total operational sales were US$364.7 million, up from US$277.7 million in the previous year.
The business stated that the property’s adjusted EBITDA of US$92.8 million was “primarily a result of better performance in all gaming segments and non-gaming operations,” as opposed to US$67.7 million in the previous year.
City of Dreams Manila’s quarterly operating revenues in the Philippine market were US$118.9 million, up from US$124.9 million in the previous year.
Additionally, adjusted EBITDA decreased year over year, coming in at US$45.9 million as opposed to US$48.7 million during the same time in 2023. According to Melco Resorts, this was “mainly due to weaker performance in the mass market table game and rolling chip segments, partially offset by better performance in the gaming machine segment.”
For the quarter that concluded on September 30, Cyprus’s overall operating revenues at City of Dreams Mediterranean and other satellite venues were US$64.4 million, up from US$53.4 million in the third quarter of 2023.
Adjusted EBITDA for that market more than quadrupled year over year to US$15.1 million from US$7.2 million in the same quarter last year.
Melco Resorts stated that this was “mainly due to the expansion of operations after City of Dreams Mediterranean opened in mid-2023, which resulted in a better performance in the gaming machine segment and non-gaming operations.”
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