Melco Majorly Improves Profits with Strong Q3 Revenue
LISTEN TO THIS ARTICLE:Melco Resorts & Entertainment has published its Q3 financial report for 2023, reporting total operating revenues of $1.02bn, a remarkable 321% increase compared to the $241.8m recorded in the same period last year.
The operator attributes the substantial revenue growth to the relaxation of pandemic restrictions in Macau earlier this year, which led to enhanced performance across gaming and non-gaming operations.
Good Results despite Hurdles
Melco Resorts & Entertainment, like its counterparts in the region, faced several restrictions in 2022, which adversely affected its revenue.
Income and adjusted EBITDA also improved year-on-year. The company recorded $94.7m for its operating income for Q3 2023, a substantial improvement from the operating loss of $198.5m in the third quarter of 2022.
Additionally, its Adjusted Property EBITDA stood at $280.6m, compared to the negative Adjusted Property EBITDA of $34.9m reported in Q3 2022.
Net loss for the fiscal period was $16.3m, compared to the $243.8m loss in 2022. It was also better compared to the $23.4m loss accrued in Q2 2023.
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.
Growth across Various Segments
Looking at other key metrics, casino remained the operator's primary source of revenue, generating $821.1m. Additionally, the company observed growth across all segments, including room revenue, which increased by 269.9% to $96.1m, and food and beverage by 235.6% to $60.4m. Revenue from entertainment, retail, and other sources grew by 205.7% to $48.6m.
Regarding property performance, City of Dreams in Macau took the lead with revenue of $506.2m. In Macau, Studio City generated revenue of $277.7m, while Altira Macau contributed $24.2m. Mocha and other operations in the region accounted for an additional $30.1m in revenue.
As for Q3 expenditures, Melco's total operating costs for the period was $922.5m, an increase of 109.5% year-on-year. The largest portion of these costs went to casino expenses, totaling $533.3m, by a substantial margin.
Non-operating costs amounted to $129.5m, which resulted in a pre-tax loss of $34.8m, compared to last year's $284.6m loss.
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