Melco revenue to reach 50% of 2019 levels in 2021, analysts say

According to Moody’s, Melco Resorts could reach 100 per cent of pre-pandemic levels by the year 2023 with a better level of profit on its returning business.

Macau.- Moody’s Investors Service Inc has predicted Melco Resorts and Entertainment’s revenue will reach only 50 per cent of its pre-pandemic levels this year.

The casino operator’s venues in Macau and The Philippines have been heavily affected by the Covid-19 pandemic and resulting restrictions.

According to Moody’s, Melco Resort’s margins will surpass pre-pandemic levels and improve through 2022 and 2023 due to an expected increase in the proportion of its more profitable mass-market business.

Analysts said Melco Resorts and Entertainment Ltd had “established operations, high-quality assets and good liquidity buffer against the current difficult environment.” 

Melco Resorts has recently received accreditation from the Responsible Gambling Council for its casinos in Macau and the Philippines.

In the third quarter of 2020, Melco reported an 85 per cent drop in revenue year-on-year.