Melco Resorts: From Recovery to Growth Potential
Thursday, 23 May 2024, 12:31
The dice are rolling in Macau
The company last posted first-quarter sales of $1.1 billion, up 55% year-over-year. Adjusted property EBITDA reached $299 million, an increase of 57% from Q1 2023.
- The momentum was driven by a strong rebound in inbound tourism to Macau.
- Performance in all gaming segments and non-gaming operations added to the positive results.
Melco has a clear growth runway
Even with the higher visitor traffic, the March tally is still 80% of the peak pre-pandemic levels.
- A recent development by the Chinese government aims to facilitate access to Macau for mainland residents.
- Melco's global footprint adds diversification to its business model and growth potential.
The near-term priority is to reduce debt
The company aims to manage its large debt position through stronger cash flow and earnings.
- Total debt has decreased, and there are plans to further reduce it in the near future.
- Improving the balance sheet could positively impact the stock's performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.