Melco Resorts reported US$182.2 million in operating losses for the third quarter of 2021, as operating revenues dropped 21 per cent quarter-to-quarter to US$446.4 million.
According to a listing by parent company Melco International Development Limited, the local gaming concessionaire maintained its results for the period largely in line, despite the impact of new Covid-19 local cases in Macau visitation.
The group generated US$402 million in gross gaming results in Macau, a 28 per cent drop from the previous quarter, mostly from mass and slots, and accumulated US$32 million in adjusted property EBITDA.
‘Continued travel restrictions and quarantine measures in Macau and the region negatively impacted our third quarter operating and financial performance. To preserve our cash and liquidity, we continue to enforce strong cost control discipline in respect to both operating expenses and capital expenditures,” CEO Lawrence Ho indicated in the release.
The appearance of COVID-19 cases in early August 2021 led to city-wide mandatory testing, mandatory closure of most entertainment and leisure venues (casinos and gaming areas excluded), and strict travel restrictions and requirements being implemented to enter and exit Macau.
Similarly, in late September 2021, the identification of additional COVID-19 cases again led to a repeat of testing, closure, and travel restrictions, which led to reduced turnout for October Golden Week holiday.
Since October 19, 2021, authorities have eased pandemic prevention measures such that travellers no longer require a 14-day quarantine on arrival in Zhuhai, and the validity of negative nucleic acid tests was extended from 24 hours to 48 hours or seven days
Capital expenditures for the third quarter of 2021 were US$221.3 million, which primarily related to various construction projects at Studio City Phase 2 and City of Dreams Mediterranean.
‘The construction of Studio City Phase 2 is progressing on track for completion before December 27, 2022. This expansion will offer approximately 900 additional luxury hotel rooms and suites, an additional indoor/outdoor water park which is expected to be one of the largest in the world, a Cineplex, multiple fine-dining restaurants, and state-of-the-art MICE space,’ Ho added.
Melco Resorts is licensed to operate a temporary casino in Cyprus, the first casino in the Republic of Cyprus, and four satellite casinos.
Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while the operation of the temporary casino will cease.
For the quarter ended September 30, 2021, total operating revenues at Cyprus Casinos reached. US$20.2 million.
The group accumulated US$1.52 billion in total cash and bank balances as of September 30, 2021, while total debt, net of unamortized deferred financing costs and original issue premiums, reached US$6.16 billion.