Melco Resorts & Entertainment said Thursday its third-quarter profit surged as gaming and non-gaming revenue grew across its Asian and European operations, with solid gains in Macau and record results in Cyprus.
The Nasdaq-listed casino operator reported total operating revenues of $1.31 billion, up 11 percent from a year earlier, driven by stronger performance at its flagship properties in Macau and steady recovery in the Philippines and Cyprus.
Operating income rose to $184.5 million from $138.6 million, while adjusted property EBITDA climbed 18 percent to $380.4 million. Net income attributable to shareholders jumped nearly threefold to $74.7 million compared with $27.3 million in the same quarter last year.
‘Our properties in Macau delivered solid growth in the third quarter, with property EBITDA improving by 21 percent year-on-year,’ said chairman and chief executive Lawrence Ho in the company’s most recent financial report. ‘Margins remained stable, underscoring the strength of our core business and focus on cost discipline.’
He added that the company introduced new gaming areas and facilities during the quarter ‘to provide patrons with a differentiated experience’ and would continue to roll out initiatives to enhance customer engagement.
In the Philippines, property EBITDA grew 45 percent quarter-on-quarter, while in Cyprus, the City of Dreams Mediterranean resort and its satellite casinos posted their best quarter since opening, with property EBITDA up 53 percent year-on-year.
Macau recovery gains pace
At the company’s flagship City of Dreams resort in Macau, total operating revenue climbed 19 percent year-on-year to $672.6 million, with adjusted EBITDA up 27 percent to $206.9 million. Rolling chip volume more than doubled to $5.58 billion, reflecting a recovery in VIP play, while non-gaming revenue grew to $94.8 million.
At Studio City, revenue rose modestly to $375.3 million from $364.7 million, with adjusted EBITDA up to $104.7 million from $92.8 million, supported by stronger mass-market performance.
Altira Macau continued to operate at a smaller scale, posting revenue of $25.6 million versus $30.5 million a year earlier, with a slightly narrower adjusted EBITDA loss of $0.7 million.
Melco also noted the planned closures of several Mocha Clubs in Macau following the government mandated satellite casino closures in the SAR, with gaming tables and machines reallocated to its larger integrated resorts.
Overseas expansion
In Manila, City of Dreams generated $110.7 million in revenue, down from $118.9 million, while adjusted EBITDA fell to $41.3 million from $45.9 million amid softer slot machine and non-gaming performance.
In Cyprus, City of Dreams Mediterranean and its satellite casinos delivered a strong showing, with revenue surging 33 percent to $85.8 million and adjusted EBITDA rising to $23.2 million from $15.1 million.
Melco also began casino operations at City of Dreams Sri Lanka in August, contributing $6.1 million in third-quarter revenue.
The company ended the quarter with $1.61 billion in cash and bank balances and total debt of $7.35 billion. Available liquidity, including undrawn revolving credit facilities, stood at about $2.60 billion.
During the quarter, Melco and its subsidiaries repaid over $530 million in various credit facilities and notes and issued $500 million in 6.50 percent senior notes due 2033 to refinance debt. Capital expenditure for the period reached $67.6 million, mainly for enhancement works in Macau and the fit-out of the new Sri Lanka casino.
Ho said Melco remains focused on ‘strategic investment and disciplined financial management’ as the company expands its footprint in Asia and strengthens its integrated resort portfolio.
