Melco Resorts with a 94 per cent rise in gaming revenues by 2020 year-end

Melco Resorts reported a 94 per cent increase in the combined gross gaming revenues during October and November 2020 from the previous quarter, the group revealed in a filing submitted to the United States Securities and Exchange Commission via one of its subsidiaries.

The gaming operator reported some otal operating revenues for the third quarter of 2020 were US$211.8 million, representing a decrease of approximately 85 per cent year-on-year, resulting in US$275 million net operating losses.

The gaming concessionaires expressed that it expects Macau gaming revenues to continue to be negatively impacted by travel bans or restrictions, visa restrictions and quarantine and social distancing requirements this year.

‘We have taken various mitigating measures to manage through the Covid-19 outbreak challenges, such as implementing a cost reduction program to minimize cash outflow of non-essential items and rationalizing our capital expenditure program with deferrals and reductions which benefits our balance sheet,’ the group added.

Melco declared that the result of the implementation of these measures and reflecting a revenue mix based on its current results it expects to achieve break-even Adjusted EBITDA upon reaching approximately 25 to 30 per cent of its historical gross gaming revenues run-rate.

As of 30 November 2020, Melco Resorts held cash and cash equivalents of US$871.9 million, and US$1.92 billion in a revolving credit facility.

The group’s total principal amount of our outstanding indebtedness reached US$4.1
billion, consisting of several notes issued since 2017 and due in different periods until 2028.