Melco Resorts & Entertainment Chairman and CEO Lawrence Ho has told Hong Kong media that the company will focus solely on Macau and paying down debt in the years ahead, with any thoughts of international expansion apparently shelved for the time being.
Echoing comments he made last year when asked by analysts about a possible bid for a Thai casino license – and more recently about the company’s focus on debt paydown – Ho reiterated in an interview with Radio Television Hong Kong (RTHK) that he was not looking ahead to any possible opportunities in Thailand, particularly given the company’s recent experience in Japan.
Melco had been one of two companies alongside Genting Singapore in the running for a license in Yokohama before the election of a new mayor saw the city suddenly withdrawn from Japan’s IR race.
“It’s not the first time we’ve seen it in places like Japan, [the process of opening up the gambling industry] has been going on for a very long time,” Ho said while attending the National People’s Congress and National People’s Political Consultative Conference in Beijing last week.
“The pandemic (over the past three years) has been very hard, so Melco will focus on paying off its debts in the next two years and do better in Macau.”
Ho also pointed out that Macau’s gaming industry had recovered faster than expected since the pandemic, and that gaming revenue in the last two months had been strong.
“But more can be done on the non-gaming side, and more can be done in the tourism, sports and concert industries,” he explained.
Melco revealed on its recent 4Q23 earnings call that it paid off nearly US$1 billion in debt in 2023, and that debt reduction would remain a major focus in the coming year.
Asked about the Macau government’s recent decision to terminate the horse racing concession of Macau Jockey Club, Ho observed that the land upon which the racecourse currently sits provides a unique opportunity to better serve the public good in future. Melco would, he said, respond with interest should the government invite operators to propose development plans for the site.
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