Group 1 - The core viewpoint of the articles highlights the financial performance and growth prospects of Melco Resorts & Entertainment (MLCO), with a significant increase in revenue and net profit [1][2]. - As of May 12, MLCO's stock price rose by 5.34% to $6.31 per share, with a total market capitalization of $2.595 billion [1]. - For the fiscal year ending December 31, 2024, MLCO reported total revenue of $4.638 billion, representing a year-on-year growth of 22.86% [1]. Group 2 - The company operates integrated resort businesses in Asia and Europe, including Altira Macau and Studio City, and is the largest non-casino gaming machine operator in Macau [2]. - MLCO is developing the Mediterranean Dream City in Cyprus, which is expected to become the largest integrated resort in Europe, and currently operates the first authorized casino in Cyprus [2].

Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of HKD 4.10 [7][4]. Core Insights - The company's gaming revenue recovery in Macau has outperformed the industry, with a market share increase to 15.7% in Q1 2025 from 14.7% in Q4 2024 [1][2]. - The total GGR for the company in Q1 2025 reached USD 1.299 billion, which is 80% of the GGR from Q1 2019, surpassing the industry average of 76% [1][2]. - The company has shown improvements in EBITDA margins, with an overall EBITDA margin of 27.7% in Q1 2025, up from 24.9% in Q4 2024 [2][4]. Financial Performance - The company's net revenue for Q1 2025 was USD 1.232 billion, a year-on-year increase of 11%, with adjusted property EBITDA of USD 341 million, up 14% year-on-year [2]. - The EBITDA margin for the company's properties has shown a positive trend, with Macau's EBITDA margin at 29.8% for Q1 2025, reflecting a 6 percentage point increase from the previous quarter [2]. - The company reported a total debt of USD 7.16 billion, with a debt-to-asset ratio of 90.6% as of March 31, 2025 [1]. Visitor Trends - Visitor numbers to Macau during the May Day holiday exceeded expectations, with an average of 170,000 visitors per day, significantly higher than the tourism bureau's forecast of 127,000 to 140,000 [3]. - The company reported a 30% year-on-year increase in visitor numbers to its properties during the May Day holiday [3]. Market Outlook - The company plans to enhance its capital structure and continue cost reduction initiatives, with a focus on improving operational efficiency [1][4]. - The target price has been adjusted upwards to HKD 4.10, reflecting a valuation of 6.7x EV/EBITDA for 2025 [4].

Core Insights - Melco Resorts reported revenue of $1.23 billion for Q1 2025, a year-over-year increase of 10.8% and a surprise of +0.76% over the Zacks Consensus Estimate of $1.22 billion [1] - The EPS for the same period was $0.12, compared to $0.04 a year ago, resulting in an EPS surprise of +1300.00% against a consensus estimate of -$0.01 [1] Financial Performance Metrics - Net Revenue for Mocha and Other was $30.60 million, exceeding the average estimate of $28.88 million, but showing a year-over-year decline of -4.1% [4] - Net Revenue for Altira Macau was $27.90 million, below the estimated $29.32 million, reflecting a -18.4% change year-over-year [4] - Net Revenue for City of Dreams Manila was $101.60 million, slightly below the estimated $104.11 million, with an -8.2% year-over-year change [4] - Net Revenue for Studio City was $354.50 million, surpassing the estimate of $342.36 million, with a +7% year-over-year change [4] - Net Revenue for City of Dreams was $658.10 million, exceeding the average estimate of $634.14 million, representing a +19.5% year-over-year change [4] Adjusted EBITDA Performance - Adjusted EBITDA for Mocha and Other was $6.79 million, above the estimate of $5.99 million [4] - Adjusted EBITDA for Altira Macau was -$0.69 million, better than the estimate of -$0.80 million [4] - Adjusted EBITDA for City of Dreams was $195.91 million, exceeding the average estimate of $171.42 million [4] - Adjusted EBITDA for Studio City was $97.32 million, surpassing the estimate of $85.12 million [4] - Adjusted EBITDA for City of Dreams Manila was $30.06 million, below the estimate of $38.24 million [4] - Adjusted EBITDA for Corporate and Others Expenses was -$28.33 million, slightly worse than the estimate of -$27 million [4] - Adjusted EBITDA for Cyprus Operations was $11.61 million, below the average estimate of $12.53 million [4] Stock Performance - Melco's shares have returned +10.8% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Melco Resorts reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and up from earnings of $0.04 per share a year ago, representing an earnings surprise of 1,300% [1] - The company posted revenues of $1.23 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.76%, compared to year-ago revenues of $1.11 billion [2] Group 2: Stock Performance and Outlook - Melco shares have declined approximately 2.6% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $1.18 billion, and for the current fiscal year, it is $0.11 on revenues of $4.85 billion [7] Group 3: Industry Context - The Gaming industry, to which Melco belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Super League Enterprise, is expected to report a quarterly loss of $0.30 per share, reflecting a year-over-year change of +70% [9]

Financial Data and Key Metrics Changes - The group-wide adjusted property EBITDA for Q1 2025 was approximately $341 million, with VIP hold adjustments bringing it to approximately $313 million [10] - Operating expenses (OpEx) were reduced to $3.1 million per day in Q1 2025, down from $3.2 million in Q4 2024, with a target to exit Q2 2025 at $3 million per day [10][11] - Available liquidity stood at $3.3 billion, with consolidated cash on hand of approximately $1.2 billion at the end of Q1 2025 [11] Business Line Data and Key Metrics Changes - Mass drop in Macau grew each month during the quarter, reaching record highs at City of Dreams and Studio City, with market share increasing from 14.7% in Q4 2024 to 15.7% in Q1 2025 [5][6] - Studio City property EBITDA increased by 20% quarter-over-quarter, demonstrating the positive impact of recent renovations [7] - City of Dreams Mediterranean and Cyprus achieved a 10% year-over-year growth in property EBITDA for Q1 2025 [8] Market Data and Key Metrics Changes - Property visitation in Macau grew by 30% year-on-year during the May Golden Week [5] - Golden Week visitation was up 40% year-over-year, indicating strong demand and recovery in the market [57] Company Strategy and Development Direction - The company is focused on driving business momentum through high-quality product offerings and strategic marketing [8] - There is an ongoing strategic review of City of Dreams Manila, with potential buyers currently engaged in the process [22] - The company aims to balance capital allocation between share buybacks and debt reduction, with a focus on maximizing shareholder value [12][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum, citing strong performance in April and May, and the successful reopening of House of Dancing Water [5][29] - The management noted that the competitive environment in the Philippines has impacted performance, prompting adjustments in cost structure and marketing [8] - Chinese policy is viewed as a critical factor, with current policies supporting domestic consumption and travel, which are favorable for the company's operations [29] Other Important Information - The company has repurchased approximately $165 million in MLCO ADSs in 2025, taking advantage of low valuations in the equity markets [12] - Full-year CapEx guidance remains unchanged at $415 million, with the completion of Sri Lanka highlighted as a major project [34] Q&A Session Summary Question: Impact of London Legrand opening on City of Dreams - Management reported no significant impact on market share or business from the opening of London Legrand, with strong performance maintained [15][19] Question: Update on strategic review of City of Dreams Manila - The strategic review is ongoing, with potential buyers signing NDAs and working through questions [22] Question: Signs of weakness on the gaming floor - Management indicated no signs of weakness post-Golden Week, with continued strong performance observed [26][32] Question: CapEx guidance for the year - Full-year CapEx guidance remains at $415 million, with the completion of Sri Lanka noted as a key project [34] Question: Clarification on OpEx and its components - OpEx guidance excludes costs related to House of Dancing Water and residency concerts, with a target to reduce to $3 million per day [36][37] Question: Non-gaming spend insights during Golden Week - Retail performance varied, with Studio City performing better in the current environment compared to City of Dreams, which continues to face challenges in high-end luxury retail [59][60]

Financial Data and Key Metrics Changes - The group-wide adjusted property EBITDA for Q1 2025 was approximately $341 million, while adjusted for VIP hold, it was approximately $313 million [9] - Operating expenses (OpEx) were reduced to $3.1 million per day in Q1 2025, down from $3.2 million in Q4 2024, with a target to exit Q2 2025 at $3 million per day [10][12] - Available liquidity stood at $3.3 billion, with consolidated cash on hand of approximately $1.2 billion as of the end of Q1 2025 [11] Business Line Data and Key Metrics Changes - Mass drop in Macau grew each month during the quarter, reaching record highs at both City of Dreams and Studio City, with market share increasing from 14.7% in Q4 2024 to 15.7% in Q1 2025 [4][5] - Studio City property EBITDA increased by 20% quarter-over-quarter, demonstrating the positive impact of recent renovations [6] - City of Dreams Mediterranean and Cypress achieved a 10% year-over-year growth in property EBITDA for Q1 2025 [7] Market Data and Key Metrics Changes - Property visitation in Macau grew by 30% year-over-year during the May Golden Week [4] - Golden Week visitation was up 40% year-over-year, indicating strong demand and market recovery [55] Company Strategy and Development Direction - The company is focused on maintaining high-quality product offerings and strategic marketing to drive business momentum [6] - There is an ongoing strategic review of City of Dreams Manila, with potential buyers currently engaged in the process [22] - The company aims to balance capital allocation between share buybacks and debt reduction, with a focus on maximizing shareholder value [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum, citing strong performance in Macau and a stable market share despite new competition [4][18] - The company noted that the competitive environment in the Philippines has impacted performance, prompting adjustments in cost structure and marketing programs [7] - Management highlighted the importance of Chinese policy in supporting domestic consumption and travel, which is crucial for future growth [29] Other Important Information - The House of Dancing Water show was relaunched successfully, expected to drive additional visitation to City of Dreams [5] - The company has repurchased approximately $165 million in MLCO ADSs in 2025, taking advantage of low valuations in the equity markets [12] Q&A Session Summary Question: Impact of London Legrand opening on competition - Management reported no significant impact on market share or business from the opening of London Legrand, maintaining strong performance in Q1 [15][19] Question: Update on City of Dreams Manila strategic review - The strategic review is ongoing, with potential buyers signing NDAs and working through questions [22] Question: Signs of weakness on the gaming floor - Management indicated no signs of weakness post-Golden Week, with continued strong performance observed [27][32] Question: CapEx guidance for the year - Full year CapEx guidance remains unchanged at $415 million, with the completion of Sri Lanka highlighted as a major project [33] Question: OpEx expectations for Q2 - OpEx guidance for Q2 is expected to be around $3 million per day, excluding costs related to House of Dancing Water and residency concerts [36][37] Question: Non-gaming spend insights during Golden Week - Retail and F&B activity was strong during Golden Week, although high-end luxury retail continues to face challenges [57][58]

1Q'25 Results Presentation Safe Harbor Statement This presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employ ...

Core Viewpoint - Melco Resorts & Entertainment Limited reported strong financial results for the first quarter of 2025, with significant increases in operating revenues and net income, driven by improved performance in gaming and non-gaming operations. Financial Performance - Total operating revenues for Q1 2025 were US$1.23 billion, an increase of approximately 11% from US$1.11 billion in Q1 2024 [2] - Operating income for Q1 2025 was US$144.9 million, compared to US$125.4 million in Q1 2024 [2] - Adjusted Property EBITDA was US$341.0 million in Q1 2025, up from US$298.8 million in Q1 2024 [3] Net Income - Net income attributable to Melco for Q1 2025 was US$32.5 million, or US$0.08 per ADS, compared to US$15.2 million, or US$0.03 per ADS, in Q1 2024 [4] Segment Performance - City of Dreams generated total operating revenues of US$658.1 million in Q1 2025, up from US$550.9 million in Q1 2024, with Adjusted EBITDA increasing to US$195.9 million from US$153.6 million [6] - Studio City reported total operating revenues of US$354.5 million in Q1 2025, compared to US$331.4 million in Q1 2024, with Adjusted EBITDA rising to US$97.3 million from US$87.9 million [11] - Altira Macau's total operating revenues were US$27.9 million in Q1 2025, down from US$34.2 million in Q1 2024, with a negative Adjusted EBITDA of US$0.7 million [14] Gaming Operations - Rolling chip volume increased to US$6.05 billion in Q1 2025, compared to US$5.69 billion in Q1 2024, with a win rate of 3.74% [7] - Mass market table games drop increased to US$1.59 billion in Q1 2025, compared to US$1.48 billion in Q1 2024, with a hold percentage of 30.2% [8] Non-Gaming Revenue - Total non-gaming revenue at City of Dreams was US$84.1 million in Q1 2025, compared to US$80.6 million in Q1 2024 [9] - Total non-gaming revenue at Studio City remained stable at US$70.7 million for both Q1 2025 and Q1 2024 [13] Financial Position - Total cash and bank balances as of March 31, 2025, were US$1.23 billion, including US$125.3 million of restricted cash [30] - Total debt at the end of Q1 2025 was US$7.16 billion [30] Share Repurchase Program - From January 1, 2025, to May 7, 2025, Melco repurchased approximately 32.3 million ADSs for about US$165 million under its US$500 million share repurchase program [32]

Core Viewpoint - Melco Resorts & Entertainment (MLCO) shows strong financial performance with significant revenue and profit growth, indicating a positive outlook for the company [1][2]. Financial Performance - As of December 31, 2024, Melco Resorts reported total revenue of $4.638 billion, representing a year-over-year increase of 22.86% [1]. - The net profit attributable to shareholders reached $43.543 million, marking a substantial growth of 113.32% compared to the previous year [1]. Company Overview - Melco Resorts operates integrated resort businesses in Asia and Europe, including Altira Macau and City of Dreams in Macau, and is the largest non-casino gaming machine operator in Macau through Mocha Clubs [2]. - The company is also developing the Mediterranean City of Dreams in Cyprus, which is expected to become the largest integrated resort in Europe, and currently operates a temporary casino in Cyprus [2].

Core Insights - Melco Resorts & Entertainment published its 2024 sustainability report, emphasizing its commitment to environmental restoration, community inspiration, supply chain sustainability, and positive business impact [1][2] Group 1: Sustainability Strategy - The company aims to go "Above & Beyond" in its sustainability efforts, engaging stakeholders for a climate-fit and equitable future [1][9] - The 2024 strategy focuses on strong governance, environmental impact management, community support, and responsible gaming [2] Group 2: Performance Highlights - Melco's sustainability strategy, "RISE to go Above & Beyond," has led to significant achievements, including recognition as 'Responsible Gambling Model Units' for ten facilities, with nine achieving perfect scores [6] - The company scored in the 93rd percentile in the S&P Global Sustainability Yearbook 2025 and received a B score from the Carbon Disclosure Project for both Climate and Water [6] - An average investment of US$582 per full-time-equivalent employee on training resulted in 100% participation in development activities [6] Group 3: Community Engagement - Over US$17.42 million was donated to local community causes, and nearly 3,600 employees participated in 359 volunteering initiatives [6] - The City of Dreams Manila established a circular economy by composting food waste and donating excess compost to local farms [7] Group 4: Environmental Initiatives - Energy efficiency measures since 2018 have saved over 62.5 million kWh annually, a 9% increase from 2023 [6] - More than 25,000 photovoltaic panels across properties generate close to 10,000 MWh annually, and the NORDAQ water filtration system has avoided 13.2 million single-use plastic bottles [6] Group 5: Supply Chain and Sourcing - The company sources 100% cage-free eggs for its food and beverage operations in Manila and Macau, with 74% at City of Dreams Mediterranean [12] - Melco is working on adopting recycled fabric uniforms and strengthening data tracking for certified sourcing and chain-of-custody verification [12]