Melco Resorts & Entertainment Limited has managed to increase its total operating revenues by 7.6 percent quarter-to-quarter in the third quarter of 2023 and narrow its net losses by a third, with management citing the opening of Studio City Phase 2 and summer holidays as contributing factors.
Overall, the gaming operator reported some $16.3 million in net losses, a 30 per cent improvement from the 23.4 reported in the previous three-month period.
Melco’s total operating revenues for the third quarter of 2023 reached $1.02 billion, representing a 7.6 percent quarter-to-quarter increase, with adjusted property EBITDA improving to $280.6 million.
“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. We had solid performance over the October Golden Week and we saw a robust recovery during the remainder of October,” Melco’s CEO, Lawrence Ho commented in the group’s latest financial report.
The group’s Macau property City of Dreams generated adjusted EBITDA of $153.9 million in the third quarter of 2023, with Altira ending with $3.8 million in EBITDA and Studio City with $67.7 million.
The Studio City property has undergone a series of upgrades in recent years, with Melco disbursing a $1.2 billion investment in the property’s Phase 2 expansion.
Melco’s capital expenditures for the third quarter of 2023 were $61.1 million, which included costs related to the construction of the City of Dreams Mediterranean in Cyprus, Studio City Phase 2 and enhancement projects at City of Dreams in Macau.
For the quarter ended September 30, 2023, total operating revenues at City of Dreams Manila were $124.9 million and $48.7 million in adjusted EBITDA.
Ho underlined that City of Dreams Manila continued to “generate solid earnings with a strong margin profile” while City of Dreams Mediterranean has been impacted by the conflict in Israel shortly after its opening.
City of Dreams Mediterranean officially opened to the public on July 10th, 2023, after a soft opening in June, with Melco operating three satellite casinos in Cyprus.