Melco Resorts dividend only likely in 2024: Moody’s

June 3, 2022 Macau Earnings & Filings

Moody’s Investors Service Inc says it expects casino operator Melco Resorts and Entertainment Ltd to resume quarterly dividend payments “only in 2024,” as the Macau gaming market recovers. That is because the firm’s earnings and financial leverage are expected to “remain weak till 2023,” the institution said in a Wednesday report.

Melco Resorts, controlled by entrepreneur Lawrence Ho Yau Lung, has business in Macau, the Philippines, and the Republic of Cyprus.

Melco Resorts’ adjusted debt – including lease liabilities – are expected to “increase to around US$8.1 billion by year-end 2022, from US$7.0 billion as of year-end 2021 and US$4.9 billion as of year-end 2019,” stated Moody’s. That was because the casino firm was “funding most of its capital spending with additional debt, as a result of pandemic-driven weak earnings and operating cash flow.”