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]

Financial Performance - Total operating revenues increased by 10.8% to $1.232 billion in 1Q'25, compared to $1.112 billion in 1Q'24[17] - Gaming revenue increased by 12.2% to $1.024 billion in 1Q'25, compared to $913 million in 1Q'24[17] - Non-gaming revenue increased by 4.4% to $208 million in 1Q'25, compared to $199 million in 1Q'24[17] - Net income increased significantly to $28 million in 1Q'25, a 4944.9% change from $1 million in 1Q'24[17] - Adjusted Property EBITDA increased by 14.1% to $341 million in 1Q'25, compared to $299 million in 1Q'24[17] - Adjusted EBITDA increased by 10.2% to $313 million in 1Q'25, compared to $284 million in 1Q'24[17] Property-Specific Performance - City of Dreams Macau's Adjusted EBITDA increased by 27.5% to $196 million in 1Q'25, compared to $154 million in 1Q'24[17] - Studio City's Adjusted EBITDA increased by 10.7% to $97 million in 1Q'25, compared to $88 million in 1Q'24[17] - Altira recorded a negative Adjusted EBITDA of $1 million in 1Q'25, compared to a positive $1 million in 1Q'24, a -148.3% change[17] - City of Dreams Manila's Adjusted EBITDA decreased by 20.6% to $30 million in 1Q'25, compared to $38 million in 1Q'24[17] - City of Dreams Mediterranean and Other's Adjusted EBITDA increased by 10.2% to $12 million in 1Q'25, compared to $11 million in 1Q'24[17] Shareholder Returns - Approximately $4.1 billion has been returned to shareholders from 2016 to 2025 YTD through dividends and share repurchases[46] - From January 1, 2025 to May 7, 2025, Melco repurchased 32.3 million ADSs at an aggregate purchase price of approximately $165 million[47] - The company has remaining authority to repurchase up to approximately $223 million of ordinary shares[47]

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]