Melco Resorts repurchases shares, confident of growth prospects
The repurchase, along with positive revenue, shows the operator's confidence in its long-term strategy.
Melco Resorts & Entertainment has repurchased roughly 8.33 million shares for $44.5m from its parent company, Melco International.
The repurchase was part of a three-year $500m program initiated in June 2024. The repurchased shares “remain registered in the name of a nominee of Deutsche Bank Trust Company Americas, as depositary in respect of Melco Resorts’ ADS program.”
The repurchase reflects Melco Resorts’ confidence in its long-term strategy and growth prospects. So far, the buyback decision has not affected the percentage of Melco Resorts’ issued share capital indirectly held by the company as of today.
If the repurchase is cancelled, Melco International’s indirect holding of Melco Resorts’ outstanding share capital would increase to approximately 52.7%.
Earlier, Melco Resorts and Entertainment released its unaudited financial results for the second quarter of 2024. Total operating revenue was up approximately 22% year-on-year to a sum of $1.16bn. City of Dreams Macau and Studio City were the main contributors to the revenue, earning up to $576.4m and $352.3m respectively.
Lawrence Ho, Chairman and CEO of Melco Resorts, also expressed an optimistic view of the growth in Macau’s gambling sector; despite the recent crackdown on illegal money exchange that was speculated to contribute to Macau’s slowdown during the June and July period.
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