Melco Resorts opened the casino at City of Dreams SRI Lanka on 2 August, in a project developed with local company John Keells Holdings. The resort represents a $1.2 billion investment and includes two hotels and gaming facilities.
The opening adds a casino resort to SRI Lanka’s tourism and gaming market through a partnership between Melco and John Keells Holdings.
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Texas Capital cut Melco Resorts & Entertainment to hold from buy, analyst David Bain wrote. The City of Dreams operator's Nasdaq-listed shares fell 2.31% in Friday midday trading on volume more than double the daily average.
Melco Resorts & Entertainment is evaluating possible online gaming operations at City of Dreams Manila, but has made no decision, according to Seaport Research Partners. The report said Melco could also consider selling its interest in the property if it received an acceptable valuation; the company ended its strategic-options review earlier this year without completing a transaction.
Reportedly, Moody's Ratings forecasts Melco Resorts revenue will rise 4.5% to US$5.4bn in 2026. The agency expects Macau gaming market expansion and stable market share to support that growth, with EBITDA forecast at US$1.3bn.
JP Morgan said on 14 July that Macau gaming stocks remained unattractive after a 25% year-to-date decline. It expects second-quarter results to prompt further forecast cuts, while Macau gross gaming revenue reached an estimated MOP7.3 billion in the first 12 days of July. UBS also forecast continued negative sentiment and named Melco Resorts & Entertainment its preferred stock.
Analysts discussed the proposed Fertitta Entertainment acquisition of Caesars, announced on Thursday, and its potential effects on casino operators. J.P. Morgan’s Daniel Politzer raised questions about financing, possible divestitures and shareholder approval, while CBRE’s John DeCree said the sector could see further leveraged and management buyouts.