Nasdaq-listed gaming company Melco Resorts & Entertainment has repurchased nearly 8.33 million shares of its own stock on the open market, with a total investment—excluding expenses—of approximately $44.5 million.
This information was disclosed in a Monday filing by its Hong Kong-listed parent company, Melco International Development Ltd.
According to the filing, Melco Resorts bought back a total of 8,335,364 American Depositary Shares (ADS), each equivalent to three ordinary shares of Melco Resorts. The transaction is part of the company’s three-year, $500 million share buyback program announced in June 2024.
Commenting on the benefits of the share buyback, the company noted that the “Share Repurchase reflects the confidence of the Company in Melco Resorts’ long-term strategy and growth prospects.”
In a previous analysis, UBS noted that the $500 million share buyback program accounts for about 15 percent of the company’s market capitalization.
In 2Q24, Melco Resorts & Entertainment saw a 22.33 percent rise in operating revenues, nearing $1.16 billion, driven by the continued recovery in Macau, which prompted improved performance in both the mass market and non-gaming segments.
The operator also recorded a profit of approximately $21.39 million, reversing a loss of $23.44 million registered in the same period in 2023.
Overall, casino revenues rose by 22.7 percent year-on-year to $942.96 million, surpassing all other segments. Despite this, operating expenses for the casino segment also increased, reaching $632.47 million.
The group also experienced a strong acceleration in its adjusted property EBITDA, totaling $302.8 million during the period, up from $267.3 million in 2Q23.
