Asian casino operator Melco Resorts & Entertainment Ltd. reported a 5 percent decline in its net revenue after adopting a new accounting method for revenue recognition.

Despite seeing an improvement in adjusted property earnings before interest, taxation, depreciation, and amortization (EBITDA), Melco Resorts announced that its net revenue dropped to $1.23 billion in the second quarter of 2018 from $1.3 billion for the comparable period in 2017.

It would be recalled that Melco adopted the new revenue standard using the modified retrospective method from Jan. 1, 2018. Using the previous accounting method, Melco Resort’s net revenue would have been $1.34 billion, representing an increase of about 3 percent from a year earlier.

“The decrease in net revenue was primarily attributable to higher commissions reported as a reduction in revenue upon the Company’s adoption of a new revenue recognition standard issued by the Financial Accounting Standards Board,” Melco said in a statement.