Melco has unveiled its Q3 2023 financial report, showcasing impressive performance with total operating revenues reaching $1.02 billion. This marks a significant increase of 321% compared to the same period in 2022. The remarkable growth is attributed to improved performance in both gaming and non-gaming operations following the relaxation of Covid-19 restrictions in Macau and the opening of Studio City Phase 2.
Striking Financial Growth:
Melco’s Q3 2023 financial report reflects substantial financial growth, with total operating revenues surging to $1.02 billion. This figure represents an extraordinary 321% increase from the third quarter of 2022.
Factors Driving Growth:
The significant boost in total operating revenues can be primarily attributed to the favorable outcomes of the relaxation of Covid-19 restrictions in Macau early in 2023. Additionally, the opening of Studio City Phase 2 has played a pivotal role in driving this remarkable growth.
Year-on-Year Improvements:
Melco’s year-on-year performance indicates substantial improvements. Operating income for Q3 2023 stood at $94.7 million, a notable improvement compared to the operating loss of $198.5 million recorded for the same period in 2022. Adjusted Property EBITDA also displayed remarkable growth, reaching $280.6 million in Q3 2023, compared to a negative Adjusted Property EBITDA of $34.9 million in the third quarter of 2022.
CEO’s Perspective:
Lawrence Ho, Chairman and CEO of Melco, expressed his satisfaction with Macau’s ongoing recovery, especially during the summer months. He highlighted the positive impact on property visitation and casino player hours, which have benefited from the region’s growth.
Performance Highlights:
Melco’s subsidiaries have also shown notable financial growth. For instance, City of Dreams Manila reported total operating revenues of $124.9 million for Q3 2023, compared to $102.6 million in the same period in 2022. Lawrence Ho emphasized City of Dreams Manila’s strong earnings and margin profile. However, City of Dreams Mediterranean faced challenges due to the conflict in Israel, prompting adjustments in their marketing strategy.
Sustainability Focus:
Melco remains committed to sustainability and is actively addressing food waste reduction. Implementing clean plate awareness campaigns and AI technology has led to a reduction of more than 60% in plate waste per cover in staff dining areas at City of Dreams Manila.
Debt Management:
Melco’s total debt balance at the end of Q3 2023 was $7.77 billion, indicating a $100 million decrease compared to the total debt balance as of June 30, 2023.
Melco’s Q3 2023 financial report showcases an exceptional 321% growth in total operating revenues, underpinned by the recovery of Macau’s gaming industry and the successful launch of Studio City Phase 2. The positive financial results, along with a commitment to sustainability and adaptive marketing strategies, position Melco for continued success in the global gaming market.