Melco Rating Still Junk, But Earnings Could Soar This Year

Must read

[ad_1]

Posted on: March 21, 2023, 03:41h. 

Last updated on: March 21, 2023, 04:13h.

Melco Resorts & Entertainment (NASDAQ: MLCO) could see its earnings per share surge over the next several years as Macau continues its post-coronavirus rebound, but its credit rating and outlook could remain challenged for some time.

Melco US listing
Melco’s City of Dreams in Manila. The company could see an earnings spurt over the next several years. (Image: Wall Street Journal)

That’s the view of Moody’s Investors Service, which in a recent report, reiterated a junk rating of “Ba3” with a “negative” outlook on the City of Dreams operator.

The rating affirmation reflects our expectation that Melco group’s financial leverage will improve significantly over the next 2-3 years, as Macau SAR, China’s gaming market will recover strongly after China recently lifted its pandemic-related travel restrictions,” wrote Moody’s Vice President Gloria Tsuen.

While the 2023 Macau rebound is proving voracious, it’s also still in its early innings, meaning it will take time for the benefits to matriculate to Melco in terms of reducing debt. Tsuen sees the operator’s leverage remaining elevated over the next 12 to 18 months.

Strong Earnings Outlook for Melco

With Macau open in mostly token form last year, concessionaires took large losses to simply keep their casinos open, and Melco was no exception to that trend.

The operator lost $100 million last year, but Moody’s estimates that will improve significantly this year as the ratings agency forecasts earnings before interest, taxes, depreciation, and amortization (EBITDA) rise to $700 million before surging to $1.2 billion in 2024.

“These estimates are based on the assumption that Macao’s mass-segment GGR will return to about 75% of its level in 2019 and fully recover in 2024, although the VIP segment GGR will remain anemic in both years because of tight regulatory restrictions on the operations of junkets that previously drove the VIP business,” added Tsuen.

Much of that good news may already be priced into Melco shares as the stock has more than doubled over the past six months. After closing below $5 on Oct. 28, 2022, the stock closed at $12 on Tuesday.

Melco Has Resources, Time to Deal with Debt

While Melco’s leverage skews toward the high end of Macau operators and the “Ba3” category average, the gaming company has resources and time with which to ameliorate that scenario.

The Ba3 ratings also consider MRE’s good liquidity, underpinned by its combined cash and unused revolver of $1.9 billion as of the end of 2022,” concludes Moody’s Tsuen. “These resources and improving operating cash flows will be sufficient to cover the company’s capital spending and short-term debt repayments for the next 12-18 months. The company’s next key debt maturities will be in 2025.”

In Macau, Melco operates City of Dreams, Morpheus, Studio City, and Altira. Some analysts estimate the company has one of the best liquidity positions among all six concessionaires, indicating its debt burden can easily be dealt with, particularly as gross gaming revenue (GGR) figures improve.

[ad_2]

Source link

More articles

Latest article

Pengalaman Beneran Cuan Main Mahjong Ways Koi800 Modal 30rb Jadi 5jt Strategi Main Gates Of Olympus Koi800 Untuk Pemula Yang Serius Mau Cuan Tips Main Mahjong Wins 3 Koi800 Biar Spin Awal Langsung Dapat Bonus Cara Mudah Main Mahjong Ways Di Koi800 Dengan Pola Paling Aman Bocoran Pola Gates Of Olympus Koi800 Yang Lagi Digandrungi Pro Player Pengalaman Pribadi Cairin Saldo Dana Lewat Mahjong Wins 3 Koi800 Trik Rahasia Main Mahjong Ways Versi Komunitas Cuan Koi800 Teknik Anti Rungkad Main Gates Of Olympus Bersama User Koi800 Cara Main Mahjong Wins 3 Dengan Modal Tipis Dan Hasil Maksimal Di Koi800 Tutorial Mudah Main Mahjong Ways Biar Spin Ga Pernah Sia Sia Di Koi800 Sharing Cerita Cuan Main Gates Of Olympus Tanpa Topup Banyak Di Koi800 Pengalaman Seru Cuan Di Mahjong Wins 3 Bareng Komunitas Koi800 Strategi Cuan Harian Main Mahjong Ways Yang Dipakai Pro Koi800 Tips Dan Trik Menang Setiap Sesi Main Gates Of Olympus Di Koi800 Trik Simple Dapat Bonus Besar Main Mahjong Wins 3 Lewat Koi800 Pengalaman Maxwin Berturut Main Mahjong Ways Dalam 3 Hari Di Koi800 Pola Paling Ampuh Main Gates Of Olympus Ala Pemain Berpengalaman Koi800 Cara Cepat Dapat Cuan Main Mahjong Wins 3 Dengan Pola Terbaik Di Koi800 Tutorial Main Mahjong Ways Biar Ga Kecolongan Saldo Dana Kamu Di Koi800 Pengalaman Menang Cuan Cepat Di Gates Of Olympus Tanpa Spin Banyak Koi800 Strategi Mudah Cair Saldo Dana Lewat Mahjong Wins 3 Bersama Koi800 Pengalaman Main Mahjong Ways Tanpa Perlu Deposit Banyak Di Koi800 Tips Main Gates Of Olympus Biar Spin Irit Tapi Profit Besar Di Koi800 Bocoran Trik Biar Menang Banyak Main Mahjong Wins 3 Lewat Koi800 Pengalaman Dapat Bonus Besar Lewat Settingan Pola Mahjong Ways Koi800 Trik Cuan Tiap Spin Main Gates Of Olympus Dengan Trik Simple Koi800 Strategi Mudah Main Mahjong Wins 3 Dan Cairin Saldo Tiap Hari Di Koi800 Pengalaman Bocoran Spin Efektif Main Mahjong Ways Dari User Koi800 Tips Setting Spin Paling Ampuh Untuk Menang Di Gates Of Olympus Koi800 Pengalaman Dapat Saldo Dana Cepat Main Mahjong Wins 3 Di Koi800 Trik Ampuh Spin Santai Tapi Cuan Banyak Di Mahjong Ways Koi800 Pengalaman Main Gates Of Olympus Tanpa Zonk Bersama Komunitas Koi800 Cara Cuan Main Mahjong Wins 3 Dengan Jurus Rahasia User Koi800 Strategi Setting Pola Mahjong Ways Koi800 Yang Terbukti Efektif Pengalaman Dapat Maxwin 2x Dalam Sehari Main Gates Of Olympus Koi800 Tips Rahasia Main Mahjong Wins 3 Supaya Tiap Spin Auto Profit Di Koi800 Tutorial Cuan Main Mahjong Ways Modal Kecil Di Platform Koi800 Pengalaman Spin Singkat Dan Jadi Saldo Besar Di Gates Of Olympus Koi800 Trik Pasti Menang Main Mahjong Wins 3 Pakai Pola Simpel Koi800 Pengalaman Main Mahjong Ways 3 Jam Cuan Bisa Beli Hp Baru Di Koi800 Pengalaman Cuan Beneran Main Mahjong Ways Kastatoto Modal 30rb Jadi 5juta Strategi Anti Rungkad Main Gates Of Olympus Bersama Komunitas Kastatoto Tips Dan Trik Main Mahjong Wins 3 Di Kastatoto Biar Bonus Lebih Sering Cara Mudah Main Mahjong Ways Kastatoto Dengan Pola Simple Tapi Profit Bocoran Pola Gates Of Olympus Kastatoto Yang Bisa Bikin Saldo Auto Nambah Pengalaman Pribadi Cairin Saldo Dana Dari Mahjong Wins 3 Kastatoto Trik Main Mahjong Ways Biar Tiap Spin Di Kastatoto Auto Cuan Teknik Efektif Dapat Maxwin Di Gates Of Olympus Versi User Kastatoto Cara Main Mahjong Wins 3 Modal Tipis Bisa Profit Tinggi Lewat Kastatoto Tutorial Main Mahjong Ways Dengan Settingan Spin Gacor Kastatoto Sharing Pengalaman Cuan Tanpa Henti Main Gates Of Olympus Kastatoto Pengalaman Dapat Bonus Besar Dalam 10 Spin Pertama Di Mahjong Wins 3 Kastatoto Strategi Harian Main Mahjong Ways Di Kastatoto Untuk Cuan Konsisten Tips Main Gates Of Olympus Kastatoto Biar Tiap Sesi Profit Tambah Trik Jitu Biar Menang Banyak Di Mahjong Wins 3 Lewat Platform Kastatoto Pengalaman Saya Cuan Bersama Kastatoto Main Mahjong Ways Tiap Malam Pola Rahasia Buat Main Gates Of Olympus Lebih Efektif Di Kastatoto Cara Cuan Lebih Cepat Main Mahjong Wins 3 Hanya Di Kastatoto Tutorial Dapat Saldo Dana Cepat Dengan Spin Mahjong Ways Kastatoto Pengalaman Maxwin Tanpa Banyak Spin Di Gates Of Olympus Kastatoto Strategi Simple Biar Bonus Mahjong Wins 3 Lebih Mudah Keluar Di Kastatoto Pengalaman Pribadi Cuan Stabil Main Mahjong Ways Dengan Kastatoto Tips Spin Bonus Gates Of Olympus Kastatoto Yang Wajib Dicoba Bocoran Cara Menang Tiap Hari Main Mahjong Wins 3 Bersama Kastatoto Pengalaman 3x Jp Beruntun Main Mahjong Ways Dengan Pola Kastatoto Trik Dan Settingan Paling Aman Main Gates Of Olympus Di Kastatoto Strategi Main Mahjong Wins 3 Untuk Newbie Biar Cepat Cuan Di Kastatoto Pengalaman Main Mahjong Ways Modal Cekak Tetap Untung Di Kastatoto Tips Rahasia Cuan Main Gates Of Olympus Dari Member Setia Kastatoto Pengalaman Spin Singkat Bisa Bawa Saldo Meledak Di Mahjong Wins 3 Kastatoto Trik Ampuh Dapat Bonus Tiap 15 Spin Main Mahjong Ways Kastatoto Pengalaman Anti Zonk Main Gates Of Olympus Dengan Trik Kastatoto Cara Mudah Cuan Tiap Spin Main Mahjong Wins 3 Pakai Taktik Kastatoto Strategi Baru Main Mahjong Ways Biar Ga Pernah Rugi Di Kastatoto Pengalaman Nyata Cairin Saldo Dari Gates Of Olympus Lewat Kastatoto Tips Pola Paling Gacor Buat Main Mahjong Wins 3 Versi Kastatoto Pengalaman Dapat Cuan Gila Di Mahjong Ways Setelah Coba Pola Kastatoto Trik Main Gates Of Olympus Supaya Profit Tanpa Overthinking Di Kastatoto Pengalaman Spin Santai Tapi Saldo Makin Gendut Di Mahjong Wins 3 Kastatoto Tutorial Rahasia Setting Spin Mahjong Ways Paling Mantap Lewat Kastatoto Pengalaman Pribadi Cuan Main Mahjong Ways Mawar500 Modal 20rb Auto Meledak Strategi Terbukti Gates Of Olympus Mawar500 Buat Kamu Yang Suka Cuan Cepat Tips Dan Trik Main Mahjong Wins 3 Di Mawar500 Biar Spin Ga Pernah Sia Sia Cara Ampuh Main Mahjong Ways Di Mawar500 Biar Bonus Keluar Tiap 10 Spin Bocoran Pola Gates Of Olympus Mawar500 Yang Sudah Dibuktikan Pemain Pro Pengalaman Main Mahjong Wins 3 Di Mawar500 Dan Dapat Maxwin Berkali Kali Trik Efektif Main Mahjong Ways Dengan Teknik Simple Dari Mawar500 Teknik Anti Rugi Main Gates Of Olympus Di Mawar500 Untuk Pemula Cara Main Mahjong Wins 3 Lewat Mawar500 Modal Mini Tapi Cuan Gila Tutorial Main Mahjong Ways Dengan Settingan Pola Gacor Mawar500 Sharing Cara Cepat Dapat Saldo Dana Dari Gates Of Olympus Mawar500 Pengalaman Menarik Main Mahjong Wins 3 Di Mawar500 Dengan Trik Rahasia Strategi Cuan Stabil Main Mahjong Ways Ala User Mawar500 Tips Cuan Tiap Hari Main Gates Of Olympus Dari Komunitas Mawar500 Trik Mudah Dapat Bonus Besar Di Mahjong Wins 3 Lewat Mawar500 Pengalaman Sukses Main Mahjong Ways Mawar500 Saldo Naik 5x Lipat Pola Paling Gacor Buat Main Gates Of Olympus Cuma Ada Di Mawar500 Cara Simple Main Mahjong Wins 3 Di Mawar500 Tanpa Deposit Besar Tutorial Bocoran Rahasia Mahjong Ways Mawar500 Biar Profit Cepat Pengalaman Beneran Dapat Bonus Besar Main Gates Of Olympus Mawar500 Strategi Rahasia Cuan Di Mahjong Wins 3 Pakai Trik Mawar500 Pengalaman Main Mahjong Ways Di Mawar500 Dengan Pola Baru 2025 Tips Trik Ampuh Main Gates Of Olympus Lewat Mawar500 Biar Tiap Spin Profit Bocoran Cara Main Mahjong Wins 3 Anti Zonk Ala Mawar500 Pengalaman Dapat Cuan Harian Main Mahjong Ways Bareng Komunitas Mawar500 Trik Spin Singkat Dan Cuan Cepat Main Gates Of Olympus Di Mawar500 Teknik Pasti Cuan Main Mahjong Wins 3 Modal Santai Lewat Mawar500 Pengalaman Auto Profit Main Mahjong Ways Di Mawar500 Sesi Pagi Strategi Gampang Menang Banyak Main Gates Of Olympus Mawar500 Cara Mudah Spin Dan Cuan Lebih Kencang Di Mahjong Wins 3 Mawar500 Pengalaman Main Mahjong Ways Dan Dapat Saldo Dana Rutin Dari Mawar500 Bocoran Trik Jitu Main Gates Of Olympus Lewat Mawar500 Sharing Cara Dapat Maxwin Lebih Cepat Main Mahjong Wins 3 Mawar500 Strategi Paling Efektif Untuk Main Mahjong Ways Mawar500 Tahun Ini Tips Main Gates Of Olympus Supaya Profit Tiap Hari Lewat Mawar500 Pengalaman Maxwin Di Mahjong Wins 3 Modal Kecil Dengan Trik Mawar500 Tutorial Main Mahjong Ways Biar Bonus Tiap Spin Dijamin Dari Mawar500 Pengalaman Seru Dan Cuan Di Gates Of Olympus Bareng User Mawar500 Trik Setting Spin Dan Pola Cuan Mahjong Wins 3 Paling Efektif Mawar500 Strategi Pasti Cuan Main Mahjong Ways Di Mawar500 Buat Saldo Dana Tebal