Staff bonus also played a part
Melco Resorts & Entertainment lost big to its VIP players in the third quarter of 2018. Figures released November 8 show MRE’s overall net revenue hitting $1.22 billion in the three months ending September 30, down 11 percent from the same period last year.
Adjusted earnings were down 26 percent to $295.4 million, operating income was down 57 percent to $83.6 million and net income was down 91.7 percent to just $9.6 million. According to CalvinAyre.com, some of the decline resulted from a “one-time special gift,” an extra month’s salary distributed to non-management employees last summer.
By contrast, mass market table drop was up at MRE properties in Macau and, with the exception of City Of Dreams, mass table win rate was also high. Gaming machine handle was also up across the board, with the win rate variable.
City of Dreams Manila posted a revenue decline of 4.4 percent to $141.7 million, with earnings down 3.6 percent to $57.3 million. VIP turnover was flat but win rate was up slightly by 0.2 points. Both mass market table drop and gaming machine spend was up, while win rate in both segments was down.
Ho told analysts that VIP spending “has fallen faster than we had expected” as Chinese consumers backing off due to trade tensions between the United States and China. Premium mass is also on the slide, Ho said, with customer spending “not what it was.”
