Bulletin: Melco's EBITDA Recovery Will Support Deleveraging

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 4, 2024--Melco Resorts&Entertainment Ltd. (MLCO)'s EBITDA recovery will likely support its deleveraging to close to pre-pandemic levels over the next 12-24 months. Strong trends in Macao's mass gaming market are fueling this recovery. We believe the pace of recovery so far is in line with our 2024 assumptions for the Macao-based integrated resorts operator. Higher visitor arrivals and hotel expansion will power mass-market growth in Macao. China?s inclusion of Xian and Qingdao in the individual visit scheme from March 6 will likely further boost visitors to Macao. We estimate Macao's mass gross gaming revenue (GGR) was up 12%-13% from 2019 levels in the first

...March 4, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 4, 2024--Melco Resorts & Entertainment Ltd. (MLCO)'s EBITDA recovery will likely support its deleveraging to close to pre-pandemic levels over the next 12-24 months. Strong trends in Macao's mass gaming market are fueling this recovery. We believe the pace of recovery so far is in line with our 2024 assumptions for the Macao-based integrated resorts operator. Higher visitor arrivals and hotel expansion will power mass-market growth in Macao. China's inclusion of Xian and Qingdao in the individual visit scheme from March 6 will likely further boost visitors to Macao. We estimate Macao's mass gross gaming revenue (GGR) was up 12%-13% from 2019 levels in the first two months of 2024. This trends at the higher end of our 5%-15% growth forecast for 2024, compared with 2019 levels. MLCO's EBITDA recovery could accelerate in the coming quarters. Solid mass gaming trends and incremental contributions...

Bulletin