In a note posted on the Smartkarma platform, Mr Law noted that Melco Resorts management provided guidance expected to be US$285 million to $305 million in 2023 capital expenditures.
According to Lucor’s memo, it consisted of US$60 million to $65 million for gaming monopolies in the Republic of Cyprus, building a resort called City of Dreams Mediteran with local partners, and maintaining $75 million to $80 million in the second phase of the group’s multi-owned Studio City Resort (pictured) in the Kotai region of Macau.
Melco Resort also operates a game complex called City of Dreams Manila in the Philippines.
“We expect the recovery to bring Melco’s overall revenue to 70% to 80% of fiscal 2019 levels, supported by contributions from Studio City Phase 2 and City of Dreams Mediterranean from the second half of 2023, citing gains in the Macau casino market after most of China’s COVID-related precautions were lifted in early January.”
For the full year of 2019, Melco Resorts reported nearly $4.98 billion in sales across the group
In response to the casino company’s fourth-quarter earnings report in early March, Chairman and Chief Executive Officer Lawrence Heyau-Lung told the group that the Cypriot government had “extended the deadline to open the Dreams Mediterranean to June 30 under our gaming license terms.”
In the same vein, Melco Resorts said Studio City’s Phase 2 Phase 1 will open in the second quarter of this year.
Mr Law of Lucor observed that in fiscal 2022, Melco Resorts’ total debt was “$8.1 billion, up 23% year-on-year,” while its net debt was “$6.3 billion, up 28%.”
He added: “We look forward to Melco’s debt to EBITDA [earnings before interest, tax, depreciation and amortization] improved significantly to 10 times in fiscal 2023 and recovered to 3.4 times in fiscal 2024, almost the level of fiscal 2019.” 경마
The agency also said the risk of refinancing at Melco Resorts had “abated.”
“If business conditions improve, Melco Resorts will be able to issue new banknotes and roll over its credit facilities.”