MELCO Resorts and Entertainment (Philippines) Corp. swung to a profit in the third quarter of this year on the back of improved operating revenues.
On Friday, Melco reported a net income of P117.3 million for the July to September period, reversing the P173.5 million net loss recorded in the same period last year.
“[This] is primarily related to improved operating revenues generated during the current period and higher interest income for the period, partially offset by associated increases in operating costs, employee benefit expenses, payments to the Philippine Parties and lower net foreign exchange gains,” the company told the Philippine Stock Exchange.
Net operating revenues for the period reached P7.53 billion, an increase of P1.4 billion from a year ago.
“The increase in total net operating revenues was primarily driven by the improved casino revenues,” it said.
Net operating revenues for the three months ended September consisted of P6.99 billion of casino revenues representing 93 percent of total net operating revenues, and P541 million of non-casino revenues.
Total operating expenses reached P6.7 billion, or P1.07 billion higher than the P5.6 billion registered a year earlier.
“The increase in operating costs was generally in line with the increased net operating revenues in the current period,” it said.
Melco is the owner and operator of City of Dreams Manila in partnership with Sy-led Premium Leisure Corp., which is in charge of the casino operations, and Belle Corp., which owns the titles and rights to the 30-hectare parcel of land where City of Dreams Manila is located.