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Melco records US$332 million loss in 3Q20 despite signs of improvement

Melco Resorts & Entertainment reported a net loss of US$331.6 million in the three months to 30 September 2020, only slightly improved from the loss of US$368.1 million recorded in the second quarter as COVID-19 continues to impact its operations in Macau and the Philippines.

The 3Q20 loss, which compared with income of US$83.2 million over the same period last year, followed an 85% year-on-year decline in total operating revenues to US$210 million. Melco also recorded an Adjusted EBITDA loss of US$76.7 million, down from EBITDA of US$418.2 million in 3Q19 but narrowed from an Adjusted EBITDA loss of US$156.3 million in the second quarter.

Almost half of Melco’s third quarter revenue was generated by City of Dreams Macau, which contributed US$91.4 million but fell to an Adjusted EBITDA loss of US$49.2 million.

Studio City contributed revenues of US$30.8 million with an Adjusted EBITDA loss of US$21.7 million, Altira Macau revenues of US$11.0 million and an Adjusted EBITDA loss of US$16.8 million, while Mocha Clubs just about broke even on revenues of US$11.3 million.

In Manila, where PAGCOR granted permission for casinos to resume operations at 30% capacity from August, revenues reached US$43.4 million compared with US$130.5 million in 3Q19, pushing the property to positive Adjusted EBITDA of US$5.2 million.

“COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance,” said Melco Chairman and CEO Lawrence Ho.

“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 (IVS).”

Ho said the end of the third quarter saw Melco with cash on hand of approximately US$1.9 billion and undrawn revolver capacities of around US$1.7 billion.

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