Melco GGR up 94% in final quarter of 2020
The company has revealed insights to its financial recovery while announcing a new international offer of senior notes.
Macau.- Melco Resorts has provided insights into the performance of its Macau casino in the last quarter of 2020 in a filing that announced a new offering of senior notes.
The company said: “Our combined gross gaming revenues during October and November 2020 increased by approximately 94 per cent compared to those in the third quarter of 2020.”
The casino operator said it expects the impact of the Covid-19 pandemic to “persist into at least a portion of 2021” due to travel restrictions and requirements to enter Macau, which requires a negative Covid-19 test result to avoid quarantine.
It said: “As the disruptions from the COVID-19 outbreak are ongoing, any recovery from such disruptions will depend on future developments, such as the successful development and distribution and widespread acceptance of safe and effective vaccines, the development of effective treatments for Covid-19, duration of travel and visa restrictions and customer sentiment and behaviour.”
Melco said it had implemented countermeasures to reduce the negative impact, such as a cost reduction programme to minimise the cash outflow of non-essential items and the rationalisation capital expenditure with deferrals and reductions to benefits the balance sheet.
As a result, the company said it expects adjusted EBITDA to break even upon reaching approximately 25 to 30 per cent of its historical gross gaming revenues run-rate.
Melco issues new senior notes
The company announced an offering of 5.375 per cent senior notes due 2029 to raise funds to repay the principal amount drawn under a revolving credit facility acquired by a subsidiary last April.
