• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Tuesday 3 June 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Melco shares drop 15% on subdued Q3 results sparking analyst “Buy” call

Ben Blaschke by Ben Blaschke
Thu 9 Nov 2023 at 05:49
Melco launches new 14-day “Express Payment Scheme” to support Macau SMEs
18
SHARES
440
VIEWS
Print Friendly, PDF & Email

US investment firm CBRE has maintained its “Buy” call on shares of Melco Resorts & Entertainment, citing “underappreciated value” after they fell by around 15% following release of the company’s 3Q23 financial results this week.

Analyst John DeCree said in a Wednesday note that Melco shares had fallen 44% since reporting its results for the June 2023 quarter back on 1 August, significantly more than the average decline of 18% by fellow Macau-facing, US-listed operators Las Vegas Sands, MGM Resorts and Wynn Resorts during the same period.

While DeCree has lowered his price target for Melco from US$20 to US$15 on a revised FY23 EBITDA estimate of US$1.47 billion – down from US$1.59 billion – due to “lingering China macro concerns,” he added, “We still see underappreciated value in the shares of Melco, which are trading at just 7.1x our updated FY24 EBITDA estimate.”

Melco’s Q3 results included Adjusted EBITDA of US$244 million, described by DeCree as mostly in-line with estimates despite being negatively impacted by low VIP hold.

What may have concerned investors, he added, was the fact that the company’s Q3 recovery was mostly seen at Studio City rather than City of Dreams Macau. Hold-normalized EBITDA grew by 50% at Studio City for the quarter versus just 1.5% at City of Dreams.

“While City of Dreams recovered more sharply earlier in the year, the shift in recovery from City of Dreams to Studio City could have an impact on valuation with growth now coming from a joint venture-owned asset vs the wholly owned City of Dreams Macau,” DeCree wrote.

“Shares of Melco tend to trade more off City of Dreams Macau’s results than Studio City given the ownership/valuation dynamic. That said, we still expect City of Dreams EBITDA to accelerate in 2024 and recover to ~85% of 2019 levels vs ~72% currently.”

RelatedPosts

Macau GGR hits new post-pandemic high of MOP$20.8 billion in October

JP Morgan: Q2 shaping as Macau’s first “non-miss” quarter in some time after strong May GGR result

Mon 2 Jun 2025 at 13:12
Less than one month remaining to MGS Summit 2022

Macau GGR sets new post-COVID high of MOP$21.2 billion in May

Sun 1 Jun 2025 at 12:53
Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

Fri 30 May 2025 at 06:42
Macau’s hotel occupancy rate reaches 89% in July

Macau’s hotel occupancy rate climbed to 87.8% in April

Thu 29 May 2025 at 17:27
Load More
Tags: CBRE GroupJohn DeCreeMacauMelco Resorts and Entertainmentshare price
Share7Share1
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Sega Sammy chairman Hajime Satomi named in Japan’s Top 50 rich list

by Newsdesk
Tue 3 Jun 2025 at 12:04

Hajime Satomi, the chairman of leading Japanese pachinko supplier and integrated resort investor Sega Sammy Holdings, has been named among Japan’s 50 richest people in 2025 by business media group Forbes. Satomi is ranked at No.41 on this year’s list...

Always in season for bold escapes at Hann Resorts

Always in season for bold escapes at Hann Resorts

by Newsdesk
Tue 3 Jun 2025 at 10:09

CLIENT PROMOTION Hann Resorts in Clark encourages guests to disconnect from their digital gadgets and rediscover the benefits of offline experiences with family and friends up north at Clark, Pampanga. “Travel, Stay, Play.” Guests from Visayas, Mindanao and other countries...

Thai Government announces Entertainment Complex Press Briefing for Wednesday, local media buzzing with anticipation

Thai Government announces Entertainment Complex Press Briefing for Wednesday, local media buzzing with anticipation

by Andrew W Scott and Ben Blaschke
Tue 3 Jun 2025 at 06:34

Late yesterday afternoon the Thai government announced a Press Briefing would be held on the eve of the Thai Entertainment Complex Roundtable (TECR), which is being organized by Inside Asian Gaming. The Press Briefing, to be held at the Ministry...

Jeju Dream Tower casino sales down 7.4% in March

Korea’s Jeju Dream Tower continues growth spurt as May gaming revenues hit US$30 million

by Newsdesk
Mon 2 Jun 2025 at 18:56

Lotte Tour’s Korean integrated resort, Jeju Dream Tower, appears to be on a roll with casino revenues surging yet again in May to KRW41.4 billion (US$30.1 million) – up 52.5% year-on-year and 25.8% higher than in April. Casino revenues have...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English