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]

Group 1 - The main investment thesis for Melco Resorts & Entertainment Limited (MLCO) is the anticipated sale of City of Dreams Manila in the Philippines [1] - The company is expected to utilize the proceeds from the sale for strategic purposes [1] Group 2 - The analyst has a beneficial long position in MLCO shares through various financial instruments [2] - The article reflects the author's personal opinions and is not influenced by any compensation from external sources [2]

Core Viewpoint - Studio City International Holdings Limited has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, which is accessible on the company's investor relations website [1] Company Information - Studio City is a world-class integrated resort located in Cotai, Macau, and its American depositary shares are listed on the New York Stock Exchange under the ticker MSC [4] - The company is majority owned by Melco Resorts & Entertainment Limited, which is listed on the Nasdaq Global Select Market under the ticker MLCO [4] Annual Report Availability - The company will provide a hard copy of its annual report containing audited consolidated financial statements free of charge to shareholders and ADS holders upon request [2]

Financial Performance - The company recognized an impairment of long-lived assets related to Altira Macau of US$207.6 million for the year ended December 31, 2023, and a further impairment of US$3.3 million for the year ended December 31, 2024[778]. - The company's allowances for casino credit losses were 48.2% of gross casino accounts receivable as of December 31, 2024, down from 64.4% in 2023[783]. - As of December 31, 2024, valuation allowances for deferred tax assets were recorded at US$477.8 million, compared to US$374.6 million in 2023[785]. - In 2024, the company received dividend payments of US$121.0 million from its Macau operating subsidiary, while no dividends were paid to shareholders[756]. - The company's total long-term debt obligations amount to US$9,778.9 million, with significant payments due in the next 1-3 years totaling US$2,428.5 million[759]. Asset Management - As of December 31, 2024, net property and equipment amounted to US$5.27 billion, representing 66.0% of total assets[772]. - The fair values of long-lived assets for Altira Macau were estimated using a combination of income and cost approaches, with discount rates of 12.6% and 12.3% for 2024 and 2023, respectively[778]. - The discount rates used for the impairment test of Mocha Clubs were 10.5% and 11.7% for the years ended December 31, 2024 and 2023, respectively[776]. - The company evaluates property and equipment for impairment whenever indicators exist, estimating undiscounted future cash flows based on significant assumptions[774]. - No impairment of goodwill was recognized during the years ended December 31, 2024, 2023, and 2022[775]. Corporate Governance - The company’s board consists of seven directors, including four independent directors, complying with Nasdaq's corporate governance rules[832]. - The audit and risk committee is responsible for overseeing the audits of the financial statements and the performance of independent auditors[840]. - The compensation committee evaluates and approves compensation plans for executives and directors[841]. - The nominating and corporate governance committee oversees compliance with legal and regulatory requirements, particularly in the gaming industry[844]. - The compensation committee has the authority to amend or terminate the 2021 Share Incentive Plan with Board approval[887]. Executive Management - Mr. Clarence Yuk Man Chung has been appointed as a director since November 21, 2006, and has extensive experience in the financial industry, including roles as CFO and M&A specialist[798]. - Mr. Evan Andrew Winkler joined Melco International as managing director in August 2016 and became president on September 4, 2019, bringing significant experience from Moelis & Company and UBS Investment Bank[799][800]. - Mr. Alec Yiu Wa Tsui has served as an independent non-executive director since December 18, 2006, and has held key positions in various financial institutions, including the Securities and Futures Commission of Hong Kong[801][802]. - Mr. Thomas Jefferson Wu has been an independent non-executive director since December 18, 2006, and has extensive experience in public service and corporate governance, including roles in Hopewell Holdings Limited[804][806]. - Mr. John William Crawford has been an independent non-executive director since January 12, 2017, and has a strong background in public accounting and education, having founded International Quality Education Limited[811][813]. Employee Compensation and Benefits - The total compensation for all directors and executive officers amounted to approximately US$30.6 million for the year ended December 31, 2024[822]. - A total of 4,621,653 restricted shares were granted to directors and executive officers at a fair value of US$2.52 per share on April 3, 2024[824]. - Approximately US$0.5 million was set aside for pension, retirement, or similar benefits for senior executive officers for the year ended December 31, 2024[830]. - The company has implemented various employee attraction and retention initiatives, including a unique in-house learning academy[855]. - The company is not a party to any collective bargaining agreements, except for the Table Games Division of City of Dreams Manila[853]. Shareholder Information - As of December 31, 2024, a total of 1,276,540,382 ordinary shares were outstanding[897]. - Lawrence Yau Lung Ho holds 710,691,045 ordinary shares, representing 55.67% of the total issued shares[893]. - ARGA Investment Management, LP holds 86,275,437 ordinary shares, representing 6.76% of the total issued shares[893]. - EuroPacific Growth Fund holds 81,804,750 ordinary shares, representing 6.41% of the total issued shares[893]. - The share ownership of directors and executive officers collectively represents 56.40% of the total outstanding shares as of March 15, 2025[858].

MACAU, March 13, 2025 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment continues to lead in Macau in the newly published MICHELIN Guide Hong Kong & Macau 2025, being granted eight MICHELIN Stars across five restaurants located in City of Dreams, Studio City and Altira Macau. This year's result sees Jade Dragon, City of Dreams' Cantonese fine dining restaurant, maintain its superior Three MICHELIN Star status for the seventh consecutive year, while Alain Ducasse at Morpheus is honored with Two MICHELIN Sta ...

MACAU, March 13, 2025 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment continues to lead in Macau in the newly published MICHELIN Guide Hong Kong & Macau 2025, being granted eight MICHELIN Stars across five restaurants located in City of Dreams, Studio City and Altira Macau. This year’s result sees Jade Dragon, City of Dreams’ Cantonese fine dining restaurant, maintain its superior Three MICHELIN Star status for the seventh consecutive year, while Alain Ducasse at Morpheus is honored with Two MICHELIN Sta ...

Financial Data and Key Metrics Changes - The group-wide adjusted property EBITDA for Q4 2024 was approximately $295 million, with an adjusted EBITDA of approximately $312 million, reflecting a 5% increase from Q3 2024 [15][16] - The daily operating expenses (OpEx) in Macau during Q4 2024 increased to $3.2 million, but are expected to decline to approximately $3.1 million in Q1 2025 and further to $3.0 million by the end of Q2 2025 [16][17] - The liquidity position remains strong with available liquidity at $3.3 billion and consolidated cash on hand of approximately $1.3 billion [19][20] Business Line Data and Key Metrics Changes - The market share in Macau grew to approximately 15.6% in December 2024, with property visitation exceeding pre-pandemic levels for the first time since reopening [6][7] - City of Dreams, Manila continued to show solid performance with growth in EBITDA and market share quarter-to-quarter [12] - The casino fit-out in Sri Lanka is progressing well, on track to open in Q3 2025 [12] Market Data and Key Metrics Changes - Total gross gaming revenue (GGR) excluding junkets outpaced both 2024 and 2019 during the Chinese New Year period, with property visitation up 17% compared to the previous year [7][8] - A single day during the Chinese New Year period ranked among the top 10 all-time highs for mass drop and GGR days [8] Company Strategy and Development Direction - The company is focusing on increasing visibility and accessibility to attract and retain high-quality customers, with renovations planned for various properties [10][11] - The asset-light strategy is being explored, particularly in relation to City of Dreams, Manila, to enhance financial flexibility and support long-term growth initiatives [13][14] - The company is committed to investing in properties in Macau while also exploring capital-light investment opportunities in new markets [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of 2025, noting strong performance in January and continued momentum into February [30][31] - The management highlighted that the business has spread throughout the month, which is seen as a healthy development for customer experience [31] - The return of the House of Dancing Water in May 2025 is expected to further drive visitation and revenue growth [8][48] Other Important Information - The company has repurchased a total of 132 million American Depositary Shares (ADSs) since the third quarter results [20][21] - Corporate expenses in Q4 2024 were $25 million, primarily due to the payment of trademark license fees [21][22] Q&A Session Summary Question: GGR growth prospects for this year and implications on Studio City - Management noted that while GGR has been choppy, January was strong, and February has shown improved performance compared to the previous year [29][30] Question: Insight into capital allocation strategy with potential proceeds from asset disposition - The primary objective remains paying down debt, but management is also considering capital-light investment opportunities and share buybacks due to undervalued shares [41][45] Question: OpEx comments and sustainability of decline - Management indicated that the decline in OpEx is expected to be sustainable, with efforts to rationalize expenses while maintaining service quality [55][60] Question: Detailed CapEx guidance for different parts of the business - For 2025, total CapEx is anticipated to be about $415 million, with $290 million allocated for Macau, including $70 million for Studio City [50][52] Question: Changes in trademark license fees and their implications - The trademark license fees are now reflected in corporate expenses, instituted at a lower percentage of revenue compared to competitors [82] Question: Future market share and quarterly run rate expectations - Management indicated that with current momentum, a quarterly run rate of around $300 million could be achievable [84]

Financial Performance - Total Operating Revenues increased by 8.9% to $1.191 billion for the three months ended December 2024, and increased by 22.9% to $4.638 billion for the twelve months ended December 2024[26] - Gaming revenue increased by 8.3% to $972 million for the three months ended December 2024, and increased by 22.6% to $3.773 billion for the twelve months ended December 2024[26] - Non-Gaming revenue increased by 11.8% to $219 million for the three months ended December 2024, and increased by 24.0% to $866 million for the twelve months ended December 2024[26] - Net Loss decreased by 82.4% to $40 million for the three months ended December 2024, and decreased by 93.3% to $28 million for the twelve months ended December 2024[26] - Adjusted Property EBITDA decreased by 2.6% to $295 million for the three months ended December 2024, and increased by 17.0% to $1.220 billion for the twelve months ended December 2024[26] Operational Highlights - City of Dreams Macau's Adjusted EBITDA was $140 million in 4Q'24[29] - Studio City's Adjusted EBITDA was $81 million in 4Q'24, with VIP operations ceasing in late October 2024[33, 36] - Altira recorded negative Adjusted EBITDA of $0.3 million in 4Q'24[37] - City of Dreams Manila's Adjusted EBITDA was $57 million in 4Q'24[41] - City of Dreams Mediterranean and Other recorded Adjusted EBITDA of $12 million in 4Q'24[45] Capital Allocation - Approximately $3.908 billion has been returned to shareholders from 2016 to 2024 through special dividends of $1 billion, regular dividends of $883 million and share repurchases of $2.024 billion[54] - For the year ended December 31, 2024, Melco repurchased approximately 20.7 million ADSs at an aggregate purchase price of approximately $112 million[54] - From January 1, 2025 to February 26, 2025, Melco repurchased 3.7 million ADSs at an aggregate purchase price of approximately $20 million[54]