Melco Resorts may perform well in Q3, analysts say

Melco Resorts remains seriously affected by the Covid-19 pandemic.
Melco Resorts remains seriously affected by the Covid-19 pandemic.

Bernstein has said that Melco Resorts may do well in the third quarter of the year fueled by premium mass revenue.

Macau.- Melco Resorts stands to benefit strongly once Macau announces a travel bubble with Hong Kong.

According to Bernstein Melco could be benefited by a 20 to 25 per cent revenue contribution.

Analysts stated: “Longer term, Melco’s premium mass offerings will be further strengthened by the opening of The Studio City Phase Two in 2023.

“Melco is well-positioned to capitalise on the Macau recovery with outsized premium mass strength, which is Melco’s core strength.”

Melco Resorts & Entertainment continues to develop its City of Dreams Mediterranean integrated resort and is seeking to train employees by opening a dealer school.

The integrated resort is expected to be launched in the summer of 2022. Melco expects it will create an estimated 4,000 jobs including approximately 2,500 permanent jobs. 

Melco International Development reported a 65.6 per cent decrease in net revenues in the first half of 2020 compared to the same period in 2019.

Melco’s revenues for the period were HK$7.68bn (US$990.8m). Net losses after tax amounted to HK$7.06bn (US$910.8m), while EBITDA was negative HK$890m (-US$114.8m).

Lawrence Ho, group chairman and CEO, said: “Despite the pandemic-derived travel bans, restrictions and quarantine requirements have adversely affected the performance of gaming revenues, we are excited to see some early signs of returning to normal operations in our integrated resorts.”

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