Melco Resorts attribute slight business recovery to IVS reinstatement

Melco Resorts & Entertainment Limited 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.
Yesterday, the gaming operator announced that the total operating revenues for the third quarter of 2020 were USD0.21 billion, representing a decrease of approximately 85% from $1.44 billion for the comparable period in 2019.
The decrease in total operating revenues was primarily attributable to softer performance in all gaming segments and non-gaming operations as a result of the Covid-19 pandemic, which resulted in a significant decline in inbound tourism in the third quarter of 2020.
Operating loss for the third quarter of 2020 was $275.0 million, compared with operating income of $175.2 million in the third quarter of 2019.
Melco generated negative Adjusted Property EBITDA of $76.7 million in the third quarter of 2020, compared with Adjusted Property EBITDA of $418.2 million in the third quarter of 2019.
Lawrence Ho, Chairman and CEO, commented, “Covid-19 and the subsequent travel restrictions continue to have a significant negative impact on our operating and financial performance.”
“Melco also fully supports the Macau SAR government’s newly launched scheme for tourists from mainland China with the aim to expand the number of visitors, boost the economy and protect local jobs,” he added.
Amid the economic downturn caused by the pandemic outbreak, Ho said that Melco remains committed to its global development program, noting that the construction on the expansion of Studio City is progressing
Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, an indoor and outdoor water parks, a Cineplex, fine-dining restaurants and an art MICE space.
Turning to Japan, Ho remarked, “The process in Japan has been substantially delayed and remains complex. We will continue to be patient as we evaluate the landscape to ensure that Melco pursues the right opportunity.”