A Lucror Analytics report indicates that Melco Resorts & Entertainment Ltd has the best liquidity runway among its peers.<\/p>\n\n\n\n\n\n\n\n
Macau.- Singapore-based\u00a0Lucror Analytics<\/strong>\u00a0has issued a report analysing Macau casino operators’ liquidity. It found that Melco Resorts & Entertainment <\/strong>is in the strongest position with a 22 months liquidity runway<\/strong>.<\/p>\n\n\n\n It found that Wynn Macau has a 14 months liquidity runway, Sands China 12 months, MGM China Holdings 11 months and SJM Holdings nine months. Its\u00a0liquidity outlook for Melco assumes an operating expense run rate of US$1.7m per day\u00a0and maintenance capital expenditure of US$5m per month.<\/p>\n\n\n\n Writing on the Smartkarma platform, Leonard Law<\/strong>, a senior credit analyst, said: “We estimate that this would be sufficient to support 22 months of cash burn \u2013 until April 2024 \u2013 under the worst-case scenario of zero revenues.”<\/p>\n\n\n\n Melco<\/a> has recently announced that its net loss rose 35.4 per cent year-on-year to US$251.5m.\u00a0The group\u2019s operating revenue for the second quarter was US$296.1m<\/strong>, a drop of 47.7 per cent from US$566.4m reported in the second quarter of 2021. When compared to the\u00a0first quarter<\/a>\u00a0of 2022, the figure slipped 37.7 per cent.<\/p>\n\n\n\n The group\u2019s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was negative US$13.8m, versus a positive US$79.1m in the prior-year quarter.\u00a0<\/p>\n\n\n\n While sharing the financial results for the second quarter of the year, Lawrence Ho Yau Lung<\/strong>, the group\u2019s chairman and chief executive said: \u201cIt goes without saying that our results for the second quarter of 2022 were heavily impacted by the Covid-19 pandemic and the restrictions imposed across mainland China and Macau. <\/p>\n\n\n\n \u201cThroughout the pandemic, ensuring the health and safety of our Colleagues has been very important, and these continued to be our highest priority through the recent outbreak in Macau.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" A Lucror Analytics report indicates that Melco Resorts & Entertainment Ltd has the best liquidity runway among its peers.<\/p>\n","protected":false},"author":176,"featured_media":25856,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"A Lucror Analytics report indicates Melco Resorts & Entertainment possesses the strongest liquidity runway among Macau casino operators, estimated at 22 months under a zero-revenue scenario. This analysis, which also covers Wynn Macau, Sands China, MGM China Holdings, and SJM Holdings, highlights the severe impact of COVID-19 restrictions on Q2 2022 financial performance across the sector. Despite a significant net loss and revenue decline, Melco's robust liquidity position provides a critical buffer against prolonged market downturns.","focusai_entities":"Lucror Analytics, Melco Resorts & Entertainment Ltd, Wynn Macau, Sands China, MGM China Holdings, SJM Holdings, Leonard Law, Lawrence Ho Yau Lung, Smartkarma","focusai_location":"Macau, Singapore, China","focusai_target_profile":"ceo_executive (1.0), regulator (0.7), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Melco Liquidity Assumptions?","query":"What are the specific assumptions underlying Lucror Analytics' 'worst-case scenario of zero revenues' for Melco's 22-month liquidity runway, particularly regarding operating expense and capital expenditure flexibility?"},{"label":"Liquidity Impact on M&A?","query":"How do the varying liquidity runways among Macau operators influence their respective capital expenditure plans, potential M&A strategies, and competitive positioning in a post-pandemic recovery phase?"}],"footnotes":""},"categories":[16338,163,158],"tags":[23906,23970],"class_list":["post-32904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","category-slider-home","tag-macau-casinos","tag-melco-resorts-entertainment"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=32904"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32904\/revisions"}],"predecessor-version":[{"id":32926,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32904\/revisions\/32926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25856"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=32904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=32904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=32904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}