Melco Resorts & Entertainment saw a significant increase in revenue in the third quarter, bringing the company closer to turning a net profit. Revenue for the three months through September reached an impressive $1.02 billion, a staggering 320.6% jump from the same period last year. The primary driver of this growth was the casino segment, which saw a 346.2% increase in revenue to $812.1 million.
The company attributed the sharp revenue increase to the relaxation of pandemic measures in Macau earlier in the year. This allowed Melco to bounce back from the restrictions it faced in Q3 of the previous year. While the spike in revenue wasn’t enough to push Melco into the black for Q3, it did manage to reduce its net loss to $16.3 million from $243.8 million in the previous year. This marked an improvement from the $23.4 million net loss in the second quarter.
Melco’s Chairman and CEO, Lawrence Ho, noted the continued recovery of Macau’s gaming industry, with solid performance over the October Golden Week and a robust recovery throughout October. The company also saw growth in its non-gaming segment, bolstered by its commitment to world-class entertainment and enhanced amenities.
Casino revenue was the largest source at $812.1 million, followed by significant growth in rooms, food and beverage, and entertainment, retail, and other revenue. Melco’s properties in Macau and the Philippines reported substantial revenue, with the City of Dreams in Macau leading the way with $506.2 million.
However, despite the impressive revenue growth, total operating costs for Q3 more than doubled to $922.5 million, mainly attributed to increased activities following the relaxation of pandemic restrictions. Despite this, Melco was able to post a positive adjusted EBITDA of $280.6 million for the quarter, a significant improvement from the previous year.
Looking at year-to-date performance, Melco saw a substantial increase in revenue during the nine months to September, reaching $2.68 billion, a 164.8% increase from the previous year. With operating costs also on the rise, Melco was left with a pre-tax loss of $189.9 million, a notable improvement from the previous year. Net loss for Melco was $121.0 million, giving the operator a potential chance of entering the black for the full year. Adjusted EBITDA also saw a remarkable increase, rising to $738.6 million from just $7.3 million the year before.