Melco to grow in Macau
Bernstein analysts believe that the upcoming months in Macau will help Melco Resorts achieve better results than expected.
Macau.- Analysts from Bernstein revealed that the predictions regarding gaming gross revenue (GGR) growth at the City of Dreams Manila, the opening of the 780 room Morpheus as well as the continued ramp up of Studio City will help Melco Resorts and Entertainment increase growth for the company
The brokerage said in a Monday note that the company is likely to outperform, as the opening of Morpheus will boost the activity at City of Dreams Macau in 2018, and it will bring premium gaming customers, AGBrief reported. “This addition to CoD will allow the property to remain competitive considering the newer property openings targeting a similar client base (i.e., MGM Cotai and Wynn Palace),” said Bernstein.
Moreover, analysts also said that the opening of the rail extension on Hengqin will continue to increase activity at Studio City as they expect more visitors. City of Dreams Manila, the Philippine casino under Melco’s supervision will also experience VIP and mass growth, a forecast GGR growth higher than in Macau.
VIP gross gaming revenue is expected to total approximately 33 percent of gross revenues over the next three year period. EBITDA would also achieve a 16 percent 2016-19E CAGR, boosted by operating leverage improvement.
