Melco Resorts & Entertainment Limited has reported some US$331.6 million in net losses during the third quarter fo this year, as total operating revenues dropped by 85 per cent year-on-year to US$212.8 million, the group’s latest financial report indicates.
“COVID-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance,” Chairman and Chief Executive Officer, Lawrence Ho states in the report.
“Despite that, our integrated resorts experienced a moderate recovery in business levels during the third quarter, benefiting from the partial resumption of casino operations in Cyprus and Manila, as well as the gradual resumption of visa issuances by the Mainland Chinese authorities under the Individual Visit Scheme (IVS)”
The gaming operator also reported some US$76.7 million in negative Adjusted Property EBITDA of US$76.7 million in the third quarter of 2020, when compared to the US$418.2 million for the same period last year.
According to a note from Sanford C. Bernstein, Melco’ EBITDA losses were better than expected and October is trending to EBITDA profitability.
Through the issuance of a series of new senior notes and the Studio City private share placements, excluding Melco’s subscription of some US$280 million, as of September 30, 2020 the group had cash on hand of approximately US$1.9 billion and undrawn revolver capacities of approximately US$1.7 billion.
“Construction on the expansion of Studio City is progressing. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a Cineplex, fine-dining restaurants and state-of-the-art MICE space,” Ho added.
“In Europe, we are developing City of Dreams Mediterranean which, upon completion, will be Europe’s largest integrated resort with approximately 500 luxury hotel rooms, a 1,500-seat amphitheater, and approximately 10,000 square meters of MICE space.”