Melco Resorts (Macau) Ltd.

Macau's gross gaming revenue (GGR) for the first quarter of 2021 recovered to about 30% of pre-pandemic levels. Mass segment GGR was close to 37% and the VIP segment GGR was around 25% of levels before the COVID-19 outbreak. This recovery was largely in line with our expectation. MLCO's first-quarter results were modestly below our expectation, mainly due to unfavorable VIP win rates in Macau. That said, its mass market GGR continued to see good recovery, with 8% improvement quarter-over-quarter, outperforming overall Macau's 2% growth. We have trimmed our forecast for MLCO's adjusted EBITDA for 2021 to US$650 million-US$850 million, from US$700 million-US$900 million, to reflect the first quarter results and latest trends. We keep our forecasts for 2022 largely

...Improving visitor numbers in line with the easing of quarantine restrictions between Macau and mainland China will help Melco Resorts & Entertainment Ltd. (MLCO, the parent of Melco Resorts (Macau) Ltd.[MRM]) to improve its leverage. We expect the company's ratio of debt to EBITDA to stay below our 3.5x downgrade threshold by late 2021 or early 2022 on a run-rate basis. Macau's gross gaming revenue (GGR) for the first quarter of 2021 recovered to about 30% of pre-pandemic levels. Mass segment GGR was close to 37% and the VIP segment GGR was around 25% of levels before the COVID-19 outbreak. This recovery was largely in line with our expectation. MLCO's first-quarter results were modestly below our expectation, mainly due to unfavorable VIP win rates in Macau. That said, its mass market GGR continued to see good recovery, with 8% improvement quarter-over-quarter, outperforming overall Macau's 2% growth. We have trimmed our forecast for MLCO's adjusted EBITDA for 2021 to US$650 million-US$850...

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