Gaming | Melco Q3 revenue plunges, ‘prepared for the worst’

Melco Resorts’ operating loss was USD182.2 million in the third quarter of 2021, compared with an operating loss of USD275.0 million in the third quarter of 2020.
Total operating revenues in the third quarter of 2021 were USD446.4 million, representing an increase of approximately 110% from USD212.9 million for the same period in 2020. The increase in total operating revenues is mostly attributable to the improved performance of all gaming segments and non-gaming operations as a result of the increase in tourism this year over 2020, according to the operator’s report.
Lawrence Ho, chairman and CEO, commented, “Continued travel restrictions and quarantine measures in Macau and the region negatively impacted our third quarter operating and financial performance.”
In its Macau operations, Ho said the company remained EBITDA positive this quarter despite a sequential decline in industrywide gross gaming revenue levels from the prior quarter.
“Our cost control measures were a primary factor of our EBITDA performance. We remain optimistic that our whole business in Macau will recover back to pre-pandemic level once travel restrictions are eased,” said Ho in an earnings call with analysts.
The CEO wants to see more investment in non-gaming, noting that it is “going to be the future, because with the VIP sector being impaired the way that it is […] it’s going to be focused on mass, and mass is going to need more amenities and more non-gaming attractions.”
Commenting on expectations of reopening later this year or in 2022, Ho said, “we are prepared for the worst and [it is] part of our budgeting.”
“I think we’re really going to be range-bound for the next six months to 12 months, as long as China continues with the zero Covid path.” he added. LV