Macau’s Melco Resorts & Entertainment reported total operating revenues of US$1.18 billion in the three months to 30 September 2024, up 16% year-on-year and slightly improved from the US$1.16 billion reported in the June quarter.
The company benefited from high VIP hold at both City of Dreams Macau and Studio City, management revealed, helping it beat streetside consensus.
Releasing its quarterly results overnight, Melco also pointed to an improved performance in all gaming segments and non-gaming operations, led by the continued recovery in inbound tourism to Macau during the third quarter of 2024. The quarter included a 16.3% increase in gaming revenues to US$944 million – flat quarter-on-quarter – and a 12.5% improvement in non-gaming revenues. Non-gaming was also up 12.7% compared with 2Q24.
Adjusted Property EBITDA of US$323 million was up 14.9% year-on-year and 6.7% sequentially, while net income attributable to Melco Resorts & Entertainment was US$13 million, reversing a net loss of US$37 million in 3Q23.
“Our initiatives to activate areas throughout our properties and drive visitation are coming together,” said Melco Chairman and CEO Lawrence Ho. “We launched a revamped loyalty program, opened a new Signature Club premium slot area at City of Dreams, and a highly themed slot area called the Dragon Zone at Studio City, in partnership with Aristocrat Gaming. We are enhancing accessibility into City of Dreams with a new light tunnel entrance which is complemented by live performances. We expect to continue to unveil new and exciting projects to support the ongoing growth in Macau.
“In Manila, despite added competition, City of Dreams’ property EBITDA increased sequentially. City of Dreams Mediterranean and our satellite casinos in Cyprus continue to face challenges due to the conflicts in the region but have had solid increases in property EBITDA quarter-to-quarter.”
By property, City of Dreams Macau reported 3Q24 GGR of US$613 million, up 9% year-on-year although down 5% sequentially, of which mass table games comprised US$452 million and VIP table games US$131 million, with another US$30 million coming from slots. Adjusted EBITDA of US$163 million was up 6% year-on-year but down from US$165 million in Q2.
Studio City reported a 31% year-on-year increase but 1% quarter-on-quarter decline in total GGR to US$335 million, dominated by mass which comprised US$280 million. VIP and slots each contributed US$28 million of GGR. Adjusted EBITDA climbed 37% versus 3Q23 and 18% quarter-on-quarter to US$93 million.
In the Philippines, City of Dreams Manila reported flat year-on-year GGR of US$137 million – up 10% sequentially – with Adjusted EBITDA of US$46 million. Mass GGR chipped in US$57 million of the total and slots another US$57 million, with a smaller US$24 million contribution from VIP.
And in Cyprus, total GGR of US$58 million was up 31% year-on-year and 7% versus Q2, generating mass table GGR of US$29 million and slots GGR of US$29 million
Adjusted EBITDA at City of Dreams Mediterranean reached US$15 million, up from US$13 million in Q2 and more than double that of the same period in 2023.
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