Melco Resorts & Entertainment reported October-December 2018 results above estimates across all of its properties, as Chairman and CEO Lawrence Ho once again emphasized that his firm has “a strong emphasis on Japan” in terms of future expansion.
Revenue gained 5% in the quarter reaching US$1.4 billion, with the company attributing the increase to higher group-wide rolling chip and mass market table games revenue. Net income rose to US$128 million.
“Opening of the iconic, award-winning Morpheus, and the continued robust growth in Macau’s mass gaming market have allowed Melco to deliver record-level property EBITDA despite the challenging macro environment,” Ho asserted.
Property EBITDA was US$425 million, an increase of 26% year-on-year, and 10% above consensus estimates.
“Year to date, Melco is the best performing stock among the six Macau gaming operators,” said analysts from Bernstein. “We see momentum in Melco stock price sustainable, contingent upon continued improvement and ramp up particularly at City of Dreams, and strength in the premium mass market.”
In the earnings conference call, Ho added, “We believe we are well placed in Japan with a strong local team actively working on the ground, engaging with the relevant stakeholders. We also believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard system and an established track record of successful partnerships will put Melco in a strong position to help Japan realize the vision of developing world-leading IRs with a unique Japanese touch.” (AGB)