Bulletin: Melco's EBITDA Recovery To Accelerate

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 16, 2024--The pace of EBITDA recovery at Melco Resorts&Entertainment Ltd. (MLCO) should accelerate over the next two to three quarters, following a weaker-than-expected second quarter of 2024. Stronger mass gaming trends in the second half of this year amid the usual seasonality, and a gradual ramp of the Studio City Phase 2 could support this. MLCO is still on track to restore its credit metrics close to pre-pandemic levels in late 2025 and 2026, in our opinion. We expect management to prioritize debt reduction and remain prudent in shareholder returns and new investments over the next 12-18 months. The company has consistently reduced its

...August 15, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 16, 2024--The pace of EBITDA recovery at Melco Resorts & Entertainment Ltd. (MLCO) should accelerate over the next two to three quarters, following a weaker-than-expected second quarter of 2024. Stronger mass gaming trends in the second half of this year amid the usual seasonality, and a gradual ramp of the Studio City Phase 2 could support this. MLCO is still on track to restore its credit metrics close to pre-pandemic levels in late 2025 and 2026, in our opinion. We expect management to prioritize debt reduction and remain prudent in shareholder returns and new investments over the next 12-18 months. The company has consistently reduced its debt over the past four quarters. Our base case assumes MLCO's leverage will improve to 5.1x in 2024 and 3.9x in 2025, from about 5.8x for the 12 months ending June 30, 2024. MLCO is the parent and key credit driver of Melco Resorts (Macau) Ltd. (##-/Positive/--)...

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