Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Melco Resorts stock up almost 2% as Q1 earnings beats expectations

EditorRachael Rajan
Published 2024-04-30, 08:48 a/m
© Reuters.

MACAU - Melco Resorts & Entertainment Limited (NASDAQ: NASDAQ:MLCO), a prominent player in the Asian and European integrated resort market, reported a mixed financial performance for the first quarter of 2024. Despite surpassing analyst expectations for adjusted earnings per share (EPS), the company fell short on revenue estimates.

For the first quarter, Melco announced an adjusted EPS of $0.04, modestly outperforming the analyst projection of $0.03. However, the company's revenue of $1.11 billion did not meet the consensus estimate of $1.13 billion. Compared to the same period last year, Melco's revenue saw a substantial increase of approximately 55% from $716.5 million, signaling a robust recovery trajectory as the company capitalized on the resurgence of inbound tourism to Macau.

The company's stock experienced an uptick of +1.82% following the earnings release.

Melco's Chairman and Chief Executive Officer, Mr. Lawrence Ho, attributed the revenue growth to improved performance across all gaming segments and non-gaming operations. He highlighted the company's proactive management changes and marketing initiatives, which have begun to reflect positively in the March and April results. Mr. Ho expressed optimism about the growth prospects in Macau and Melco's ability to maintain its market leadership.

The company's operating income for the quarter stood at $125.4 million, a significant leap from the $0.4 million reported in the first quarter of 2023. Additionally, Melco generated an adjusted property EBITDA of $298.8 million, up from $190.8 million in the previous year's first quarter.

Melco's financial position remains solid with total cash and bank balances of $1.29 billion, including restricted cash, and a net debt reduction of approximately $150 million compared to the end of the previous quarter. Capital expenditures for the first quarter of 2024 amounted to $36.4 million, primarily related to enhancement projects at City of Dreams in Macau and Studio City.

Looking ahead, Mr. Ho's statement reflects confidence in the company's strategic initiatives and the expected seasonal strength in the upcoming summer months, despite challenges such as regional conflicts and the impact of luck factors in VIP segments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.