Melco Resorts and Entertainment Ltd ADR

MLCO: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$49.10	Qvrfkc	Kffmzphc

Melco Resorts Earnings: Recovery Continues, but Muted Market Share Gains Slightly Disappointing

Jennifer Song

Mar 1, 2024

We lower our fair value estimate of Melco Resorts to USD 11.60 per share from USD 12.60, to factor in a slower volume ramp-up at the newly launched Studio City phase 2, which has yet to help the firm gain market share in gross gaming revenue, or GGR, despite the addition of 900 hotel rooms. In addition to a seasonal volatility in premium mass volumes, the disappointing performance reflects the focus on cost-cutting and reduced emphasis on business promotion under old management. To that end, the firm reported it is seeking a new chief operating officer following the departure of COO David Sisk.

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