Toward the end of October, Melco Resorts & Entertainment announced it was getting ready to recruit 1,000 employees to fill in the new positions for its new Mediterranean project in Cyprus. Now, the company has made its unaudited third-quarter earnings for 2022 public, signaling a 46% decrease in total operating revenue.
Strict Traveling & Covid-19 Closure as Main Culprits
The NASDAQ-listed developer, operator, and owner of a range of successful integrated resorts in Europe and Asia reported total operating revenues of $241.8 million for the said quarter. The amount represents an important drop from $446.4 million in Q3 2021.
The explanation for the decrease was offered through the government mandating Melco’s casinos to be temporarily closed in Macau as a result of the new spike in Covid-19 cases. Another culprit for the decrease in total operating revenue was found in the tightened travel restrictions in mainland China and Macau during the third quarter. The restrictions triggered a poorer performance in rolling chip and table games for the mass market.
Negative Adjusted EBITDA
The company also reported a negative adjusted property EBITDA of $34.9 million in Q3 2022, compared to $31.9 million recorded in last year’s third quarter. Melco also reported a $198.5 million operating loss for Q3 from $182.2 million during last year’s Q3. As for the loss, it amounted to $243.8 million. By comparison, the company reported a net loss of compared $233.2 million during the same period last year. Noncontrolling interests generated a net loss of $42.8 million in Q3 and $35.3 million in Q3 2021. They were tied to City of Dreams Manila, Studio City, and the company’s operations in Cyprus.
City of Dreams Manila is found at the gateway of Entertainment City and it hosts a mix of hotel brands inspired by celebrity lifestyles and trendsetters. City of Dreams also offers a luxury casino hotel for VIP members and services for important business guests. Studio City has Hollywood as the main source of inspiration. It considers itself to be “the most diversified entertainment offering yet established in Macau” and it is packed with next-gen and a must-see type of leisure experience.
The company’s chairman and chief executive officer Lawrence Ho expressed confidence regarding Macau’s business ability to make a comeback, especially in the context of the group’s reopening. He also expressed cautiousness regarding their optimism in relation to the granting of group visas, a process that was initiated on November 1.