China – Melco Resorts posts strong third quarter
‘Sustained recovery in Macau’ and ‘ongoing strength in the Philippines’ has helped Melco Resorts post its best ever EBITDA in the third quarter.
Net revenue for the third quarter of 2017 was US$1,376.8m, representing an increase of approximately 19 per cent from US$1,152.6m for the comparable period in 2016. The increase in net revenue was primarily attributable to higher rolling chip revenues at City of Dreams and the commencement of rolling chip operations at Studio City in November 2016.
Lawrence Ho, our Chairman and Chief Executive Officer, commented: “A strong contribution from all gaming segments, aided by a sustained recovery in Macau and ongoing strength in the fast growing Philippines gaming market, continues to drive our Company’s overall profitability which enabled us to deliver our all-time record Adjusted property EBITDA of US$400.2m in the third quarter of 2017.
“Gaming revenue growth momentum in Macau has remained strong, with October 2017 marking the 15th consecutive month of positive year-over-year growth. Looking out, we believe there are multiple drivers of long term growth for Macau, powered by ongoing expansion of the increasingly consumption driven middle-to-upper class in China, improving accessibility into and mobility around Macau, and the continuing build-out of non-gaming amenities, which we believe support an increase in the number of tourists and length of stay.
“Melco continues to pursue quality, sustainable earnings growth by remaining focused on the mass market gaming segment, while remaining committed to managing costs, which is evident in the improvement in EBITDA and EBITDA margins in the third quarter of 2017.
“City of Dreams has once again proven itself to be the unequivocal leader in the premium end of the market, with ongoing improvements in mass table yields despite an increase in new supply in the market. We aim to further solidify our leadership position in the premium segment by embarking on a range of exciting enhancements as part of phase three at City of Dreams, including the opening of Morpheus, which remains on budget and on track to open in the first half of 2018. This ultra-luxury, groundbreaking concept will add approximately 780 luxury hotel rooms, suites and villas as well as incredible food and beverage and other non-gaming amenities. When Morpheus opens, we will also commence the rebranding and redevelopment of The Count:Down, which we believe will seamlessly complement the integrated resort’s already market-leading premium mass and direct VIP gaming amenities and other non-gaming offerings.
“Studio City continues to ramp by delivering improvements in the mass market and rolling chip segments. Going forward, we will continue to refine our product offerings at Studio City with a range of extensive property upgrades planned over the next twelve months, including the planned redevelopment of the House of Magic and enhancements in the accessibility to the property.
“In The Philippines, City of Dreams Manila continues to enjoy strong year-on-year growth across all gaming segments, which enabled the property to deliver over 27 per cent year-over-year growth in Adjusted property EBITDA, despite new supply in the Philippines.
“We continue to focus on new expansion opportunities to deliver long term value for our shareholders, which include the transformational integrated resort opportunity in Japan. We believe that our track record of delivering high quality and unique integrated resorts, our market-leading social safeguard systems, and commitment to being an ideal partner to local governments and communities alike places us in a strong position to compete for a license in this exciting market.
