Melco Resorts Q3 revenue slips on weaker gaming

Overview

• Macau-based integrated resort operator's Q3 revenue fell 10% yr/yr on weaker gaming and non-gaming

• Net income nearly flat in Q3, down sharply from prior year

• Company repurchased $160 mln in shares during the quarter

Outlook

• Company says it is focused on strategy execution and long-term growth in Macau

• Company notes resilience in Philippines and Cyprus properties despite regional headwinds

• Company did not provide specific financial guidance for future quarters or the full year in the press release

Result Drivers

• WEAKER GAMING AND NON-GAMING - Co said lower revenue was mainly due to weaker rolling chip, mass market table games, and non-gaming operations

• CYPRUS GROWTH - City of Dreams Mediterranean and satellite casinos in Cyprus delivered record quarterly EBITDA, offsetting some weakness elsewhere

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

Reuters Recommended Reads

• Nov 3 - Red Rock Resorts Q3 revenue beats estimates on Las Vegas growth

• Nov 4 - Flutter pauses share buybacks to focus on deleveraging, cost savings

• Nov 3 - Lottomatica's core profit rises 3%, aided by online and sports betting growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)