Shares of Macao casino operator Melco Resorts and Entertainment (NASDAQ: MLCO) fell as much as 12.2% in trading on Tuesday after the company reported third-quarter 2023 financial results. At 1:45 p.m. ET today, shares were still down 11% and didn't show signs of recovery.

Revenue for the quarter increased from $241.8 million a year ago to $1.02 billion on the back of a recovery in Macao's gaming market overall. That didn't lead to net income, though, as Melco reported a loss of $16.3 million, or $0.01 per share. Analysts were expecting $1.03 billion in revenue and break-even earnings.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a proxy for cash flow coming from resorts and casinos, was $280.6 million in the quarter, up from a loss of $34.9 million a year ago. But the adjusted EBITDA margin was just 27.6%, lagging behind 29.3% in the third quarter of 2019 and well below competitors that are seeing margins of over 30% in many cases, coming out of the pandemic.

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Source Fool.com