Melco Resorts Announces $500 Million Share Buyback, Boosting Confidence

It’s a good move that Melco Resorts & Entertainment Limited, a casino developer and operator listed on the Nasdaq, has started a new $500 million share buyback program.

With this program, Melco is making a significant financial commitment equivalent to 15% of its current market capitalization.

Both Melco Resorts and its parent firm, Melco International Development, stand to gain from this buyback, according to UBS.

Repurchasing shares, especially from Melco International Development, may improve the cash flow of the company.

More significantly, management’s confidence in Melco’s future value is seen to be reflected in the buyback program.

This announcement replaces a prior buyback plan that was started in June 2021 but has since ended.

Melco’s repurchase of a sizable portion of its shares during that period showed its dedication to provide value to shareholders.

Original Story by: Asian Gaming Brief