Melco Resorts & Entertainment stock gained sharply prior to Wednesday’s market open after offering hopeful commentary on Macau reopening.
For the third quarter, the casino operator posted a mixed result that included a lighter than expected loss but a miss on sales expectations. The latter figure represented a nearly 50% deceleration from the prior year quarter amid persistently stringent pandemic restrictions.
“Our results for the third quarter of 2022 were impacted by the casino closures in July and the travel restrictions imposed across mainland China and Macau,” CEO Lawrence Ho commented. “In July, the Macau government implemented preventative measures against the pandemic and our casinos were closed for 12 days. Following the re-opening, the operating environment remained challenging given the continuing tight travel restrictions, but we are encouraged by the recent re-opening of Macau to international tourists from designated countries as well as the increase in visitation over the October Golden Week.”
Given the trends into October and November, he voiced cautious optimism on fourth quarter visitation rates. He added that the casino has been in touch with local authorities and has found the process of gaming concessions process to be satisfactory.
Elsewhere, the Philippines and Cyprus were cited as particular areas of growth with traffic ticking up to if not exceeding 2019 levels.
Shares of Melco Resorts ( NASDAQ: MLCO ) rose 3.51% about one hour prior to Wednesday’s US market open.
Read more on recent signals on pandemic restrictions in Macau .
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Melco Resorts moves higher on lighter than expected loss, Macau optimism