Operator News
China – Melco smashes EBIDTA records as Macau’s mass gaming surges
By Phil - 31 October 2019
Melco Resorts & Entertainment said a surge in mass table games helped it reach record EBITDA, record mass market table games drop and record slot machine handle in the third quarter of 2019.
Overall revenue came in at US$1.44bn, up 16 per cent due to better performance in the rolling chip and mass market table games segments.
Lawrence Ho, Chairman and Chief Executive Officer, said: “During the third quarter of 2019, all of Melco’s Macau integrated resorts continued to deliver strong mass table games revenue growth, which drove group-wide Property EBITDA to expand approximately 39 per cent year-over-year to US$418m.
“Melco’s mass market table games drop and gaming machine handle both reached all-time-record-highs. The third quarter of 2019 also marked the 16th consecutive quarter of positive year-over-year growth in mass market table games drop, highlighting the strength in Macau’s mass gaming market and Melco’s leadership position in the city’s mass and premium mass gaming segments.”
GGR at City of Dreams was US$787.3mcompared to US$600.9m in the third quarter of 2018. Altira Macau generated US$113.9m compared to US$90.2m in the third quarter of 2018 whilst Studio City fell to US$337.7m from US$345.2m.
Mr. Ho added: “City of Dreams Macau continued to perform strongly with yet another quarter of significant market share gain in both the mass and the VIP gaming segment. That together with our strong cost discipline drove EBITDA 58 per cent higher year-over-year,” Mr. Ho added. “Studio City also continue to drive with record mass table and slot volume driving property EBITDA growth of 19 per cent year-over-year. Our luxury boutique casino resort Altira experienced the same mass gaming strength with mass table gaming revenue expanding 40 per cent year-over-year. Over 90 per cent of our Macau EBITDA is contributed by the non-VIP segment.
“We remain as confident as ever in Macau’s mass market growth, which rides on the growing Chinese middle class, new integrated resort openings and significant infrastructure upgrades including the recently opened Hong Kong-Zhuhai-Macau Bridge, the soon to be opened Macau Light Rail Transit and the upcoming extension of China’s high speed rail network as a result, of which Macau will become even more accessible.”
Revenues at City of Dreams Manila fell to US$130.5m from US$141.7m whilst Cyprus, where Melco is currently operating a temporary casino and three satellite casinos generated US$26.7m compared to US$16.9m in the third quarter of 2018.
