{"id":777017142,"date":"2024-07-11T09:30:23","date_gmt":"2024-07-11T12:30:23","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777017142"},"modified":"2026-04-22T08:15:29","modified_gmt":"2026-04-22T11:15:29","slug":"melco-could-receive-50-of-casino-ebitda-at-city-of-dreams-sri-lanka-analysts-say","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/melco-could-receive-50-of-casino-ebitda-at-city-of-dreams-sri-lanka-analysts-say","title":{"rendered":"Melco could receive 50% of casino EBITDA at City of Dreams Sri Lanka, analysts say"},"content":{"rendered":"\n

Morgan Stanley estimates that Melco Resorts could receive US$30m in cash flow.<\/p>\n\n\n\n\n\n\n\n

Macau.- Morgan Stanley<\/strong> has shared details about Melco Resorts & Entertainment’s share of earnings from City of Dreams Sri Lanka<\/a>, a US$1bn integrated resort (IR) in central Colombo that will be developed with\u00a0John Keells Holdings<\/strong>. Analysts Praveen Choudhary<\/strong> and Gareth Leung <\/strong>said Melco will pay John Keells 50-55 per cent of casino earnings before interest taxes depreciation and amortisation (EBITDA) . It will pay 30-40 per cent income tax on its share.<\/p>\n\n\n\n

Analysts noted that gross gaming revenue (GGR) would need to exceed US$300m to achieve US$100m EBITDA. Based on a 50 per cent EBITDA share and 40 per cent tax, analysts suggested that Melco Resorts could receive US$30m in cash flow.<\/p>\n\n\n\n

The Government of Sri Lanka has awarded Melco\u2019s wholly-owned local subsidiary a 20-year casino licence. The company will operate the gaming area at the IR, with an initial investment of approximately US$125m.\u00a0Melco will also manage the top five floors of the hotel, which will represent 113 of the 800 total hotel rooms, under its Nuwa brand.<\/p>\n\n\n\n

The casino is expected to open in mid-2025 while the resort, which will have 800 hotel rooms, will open in October this year. The venue will also include retail, food and beverage outlets and MICE facilities. It will be the first IR in Sri Lanka and South Asia.<\/p>\n\n\n\n

See also: <\/strong>Sri Lanka updates casino licence fees<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Morgan Stanley estimates that Melco Resorts could receive US$30m in cash flow.<\/p>\n","protected":false},"author":176,"featured_media":19449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Morgan Stanley estimates Melco Resorts could generate US$30m in cash flow from its City of Dreams Sri Lanka integrated resort, a US$1bn project developed with John Keells Holdings. Melco will operate the gaming area under a 20-year license, sharing 50-55% of casino EBITDA with John Keells and paying 30-40% income tax on its share. The casino is slated for a mid-2025 opening, marking Sri Lanka's first IR.","focusai_entities":"Morgan Stanley, Melco Resorts & Entertainment, City of Dreams Sri Lanka, John Keells Holdings, Praveen Choudhary, Gareth Leung, Government of Sri Lanka, Nuwa","focusai_location":"Macau, Sri Lanka, Colombo, South Asia","focusai_target_profile":"ceo_executive (0.95), regulator (0.75), compliance_legal (0.7), operator_casino (0.9), investor_analyst (0.98), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Melco's ROI Sri Lanka?","query":"What is the projected return on investment for Melco Resorts' US$125m initial capital outlay in City of Dreams Sri Lanka, considering the US$30m estimated annual cash flow and the 20-year license term?"},{"label":"Regulatory Framework Impact?","query":"How might the nascent regulatory framework in Sri Lanka, particularly regarding gaming taxation and licensing, evolve and impact the long-term profitability and operational stability for Melco Resorts?"}],"footnotes":""},"categories":[157,16338],"tags":[18488],"class_list":["post-777017142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-melco-resorts"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777017142","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=777017142"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777017142\/revisions"}],"predecessor-version":[{"id":777017170,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777017142\/revisions\/777017170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/19449"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777017142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777017142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777017142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}