Group 1 - Melco Resorts reported a quarterly loss of $0.01 per share, missing the Zacks Consensus Estimate of $0.08, compared to earnings of $0.13 per share a year ago, representing an earnings surprise of -112.50% [1] - The company posted revenues of $1.19 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.81%, and showing an increase from year-ago revenues of $1.09 billion [2] - Over the last four quarters, Melco has surpassed consensus EPS estimates just once, while topping consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Melco shares losing about 1% since the beginning of the year, compared to the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on $1.19 billion in revenues, and $0.49 on $4.82 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Core Viewpoint - Studio City International Holdings Limited reported a significant increase in total operating revenues for the fourth quarter and full year of 2024, driven by the recovery in inbound tourism in Macau and the ramp-up of operations following the opening of Studio City Phase 2 [2][17]. Financial Performance - Total operating revenues for Q4 2024 were US$152.9 million, up from US$141.3 million in Q4 2023, marking a year-over-year increase of approximately 11.4% [2]. - For the full year 2024, total operating revenues reached US$639.1 million, compared to US$445.5 million in 2023, reflecting a growth of about 43.4% [17]. - Studio City Casino generated gross gaming revenues of US$321.8 million in Q4 2024, an increase from US$294.8 million in Q4 2023 [3]. Gaming Operations - The mass market table games drop increased to US$891.7 million in Q4 2024, compared to US$864.1 million in Q4 2023, with a hold percentage of 32.1% versus 30.0% in the prior year [5]. - Gaming machine handle for Q4 2024 was US$888.9 million, up from US$778.3 million in Q4 2023, with a win rate of 3.3% compared to 3.2% in the previous year [6]. Cost and Income Analysis - Operating income for Q4 2024 was US$3.1 million, down from US$13.3 million in Q4 2023, while Adjusted EBITDA was US$56.7 million, compared to US$64.8 million in the same quarter of the previous year [9]. - The net loss attributable to Studio City for Q4 2024 was US$27.7 million, compared to a net loss of US$18.6 million in Q4 2023 [10]. Capital Structure and Expenditures - Total cash and bank balances as of December 31, 2024, were US$127.8 million, down from US$228.2 million a year earlier [14]. - Total debt at the end of Q4 2024 was US$2.16 billion, reduced from US$2.34 billion at the end of 2023, primarily due to the repurchase of senior notes [14]. - Capital expenditures for Q4 2024 were US$25.6 million [16]. Market Positioning - Studio City Casino has strategically repositioned to focus on the premium mass and mass segments, with VIP rolling chip operations transferred to City of Dreams in late October 2024 [4].

Core Viewpoint - Melco Resorts & Entertainment Limited reported a significant recovery in its financial performance for the fourth quarter and full year of 2024, driven by improved gaming and non-gaming operations, alongside a strategic focus on enhancing customer experience and market share in Macau [2][5][36]. Financial Performance - Total operating revenues for Q4 2024 were US$1.19 billion, a 9% increase from US$1.09 billion in Q4 2023 [2]. - Operating income for Q4 2024 was US$97.0 million, compared to an operating loss of US$94.4 million in Q4 2023 [2]. - Adjusted Property EBITDA for Q4 2024 was US$295.4 million, slightly down from US$303.4 million in Q4 2023 [3]. - For the full year 2024, total operating revenues reached US$4.64 billion, up from US$3.78 billion in 2023 [36]. - Operating income for 2024 was US$484.6 million, compared to US$65.0 million in 2023 [37]. - Net income attributable to Melco for 2024 was US$43.5 million, or US$0.10 per ADS, a significant recovery from a net loss of US$326.9 million in 2023 [38]. Gaming Operations - Rolling chip volume increased to US$6.24 billion in Q4 2024 from US$5.19 billion in Q4 2023, with a win rate of 2.35% [7]. - Mass market table games drop rose to US$1.53 billion in Q4 2024, compared to US$1.44 billion in Q4 2023, with a hold percentage of 32.0% [8]. - Gaming machine handle for Q4 2024 was US$1.03 billion, up from US$0.96 billion in Q4 2023, maintaining a win rate of 3.1% [8]. Non-Gaming Operations - Total non-gaming revenue at City of Dreams for Q4 2024 was US$85.6 million, an increase from US$80.1 million in Q4 2023 [9]. - Non-gaming revenue at Studio City for Q4 2024 was US$73.2 million, compared to US$65.3 million in Q4 2023 [18]. - City of Dreams Mediterranean and Other reported total operating revenues of US$59.2 million in Q4 2024, up from US$47.3 million in Q4 2023 [24]. Capital Expenditures and Financial Position - Capital expenditures for Q4 2024 were US$94.9 million, focusing on enhancement projects and new developments [33]. - As of December 31, 2024, total cash and bank balances were US$1.27 billion, with total debt at US$7.16 billion, a slight reduction from the previous quarter [30]. - Available liquidity, including cash and undrawn credit facilities, was approximately US$3.35 billion as of December 31, 2024 [30]. Share Repurchase Program - For the year ended December 31, 2024, the company repurchased approximately 20.7 million ADSs for about US$112 million under its US$500 million share repurchase program [34]. - From January 1, 2025, to February 26, 2025, an additional 3.7 million ADSs were repurchased for approximately US$20 million, leaving US$368 million remaining under the program [35].

Core Viewpoint - Melco Resorts & Entertainment Limited is evaluating potential strategic alternatives for City of Dreams Manila, with no decisions made yet regarding any specific alternatives [1][3]. Group 1: Company Overview - Melco Resorts & Entertainment Limited is a developer, owner, and operator of integrated resort facilities in Asia and Europe, with operations including Altira Macau, City of Dreams Macau, and City of Dreams Manila [5]. - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, who serves as Chairman, Executive Director, and CEO [6]. Group 2: Strategic Evaluation - Melco has engaged CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to assist in exploring strategic alternatives for City of Dreams Manila [2]. - The exploration of potential strategic alternatives does not guarantee any transaction will occur, and the company will not provide updates unless further disclosure is deemed appropriate [3].

Core Viewpoint - Melco Resorts & Entertainment Limited is evaluating potential strategic alternatives for City of Dreams Manila, with no decisions made yet regarding any specific alternatives [1][3]. Group 1: Company Overview - Melco Resorts & Entertainment Limited is a developer, owner, and operator of integrated resort facilities in Asia and Europe, with operations including Altira Macau, City of Dreams Macau, and City of Dreams Manila [5]. - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, the Chairman, Executive Director, and CEO of the company [6]. Group 2: Strategic Evaluation - Melco has engaged CBRE Capital Advisors, Inc. and Moelis & Company LLC as financial advisors to assist in exploring potential strategic alternatives for City of Dreams Manila [2]. - The company has stated that there is no assurance that the exploration of potential strategic alternatives will lead to any transaction [3].

Core Insights - Melco Resorts & Entertainment has been recognized in the S&P Global Sustainability Yearbook 2025 as an "Industry Mover" in the Casinos & Gaming sector, indicating its strong sustainability performance [2] - The company's Studio City Phase 2 has achieved a BREEAM New Construction "Excellent" rating, marking it as the first BREEAM certified project in Macau [3][4] Group 1: Sustainability Recognition - Melco has been included in the S&P Global Sustainability Yearbook 2025, which features companies scoring in the top 15% of their industry based on the S&P Global 2024 Corporate Sustainability Assessment (CSA) [2] - The company was selected from a pool of 7,690 global companies across more than 60 industries, highlighting its competitive sustainability performance [2] Group 2: Studio City Phase 2 Development - Studio City Phase 2 has received the BREEAM "Excellent" rating for New Construction, following its earlier "Excellent" rating for the design stage, showcasing its commitment to high sustainability standards [3] - This development is also recognized as the first BREEAM certified project in China under the International 2016 New Construction: Bespoke scheme [4] Group 3: Leadership Commitment - Mr. Lawrence Ho, Chairman and CEO of Melco, emphasized the company's dedication to sustainability and its goal to inspire guests towards a sustainable future, reflecting a commitment at all operational levels [5]

Core Insights - Melco Resorts & Entertainment has achieved significant recognition in the 2025 Forbes Travel Guide, leading among integrated resorts in Asia and topping the competition in Macau with a total of 107 FTG Five-Star awards [1][2] Awards and Recognition - The company received three new FTG Five-Star awards in 2025 for its Hotel, Restaurant, and Spa categories, specifically for Studio City's Epic Tower, The Spa at Epic Tower, and Altira Macau's Aurora restaurant [1][2] - The total of 19 FTG Five-Star awards for Melco properties includes notable establishments such as Morpheus, City of Dreams, and Nüwa, City of Dreams Macau [2] Company Overview - Melco Resorts & Entertainment operates integrated resort facilities in Asia and Europe, including Altira Macau and City of Dreams in Macau, and City of Dreams Manila in the Philippines [3] - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, who serves as Chairman and CEO [4]

Financial Performance - Melco Resorts Finance Limited reported a total revenue of HK$5.2 billion (approximately US$663 million) for the third quarter of 2024, representing a 15% increase compared to the same period last year[6]. - The company achieved an adjusted EBITDA of HK$1.8 billion (approximately US$230 million), reflecting a 20% year-over-year growth[6]. - The company reported a net income of HK$800 million (approximately US$102 million) for the third quarter, a significant improvement from a net loss of HK$200 million in the same quarter last year[6]. - Total operating revenues for Q3 2024 were US$997.4 million, a 17.9% increase from US$846.1 million in Q3 2023[23]. - Net income for Q3 2024 was US$10.6 million, compared to a net loss of US$26.6 million in Q3 2023[24]. - Total operating revenues for the nine months ended September 30, 2024, were US$2.98 billion, a 32.5% increase from US$2.25 billion in the same period of 2023[36]. - Net income for the nine months ended September 30, 2024, was US$19.5 million, compared to a net loss of US$145.9 million in the comparable period of 2023[37]. Visitor and Market Trends - User data indicated a 25% increase in the number of visitors to Melco's integrated resorts in Macau, with a total of 1.5 million visitors in Q3 2024[6]. - The company anticipates a continued recovery in the gaming market, projecting a revenue growth of 10-15% for the next quarter[9]. Operational Developments - Melco is investing HK$1.2 billion (approximately US$153 million) in new technology and product development to enhance customer experience and operational efficiency[6]. - The company plans to expand its market presence by opening two new gaming venues in Macau by the end of 2025[6]. - Melco Resorts Finance Limited has initiated discussions for potential acquisitions to strengthen its portfolio in the Asia-Pacific region[9]. Gaming Performance - Melco's gaming machine win rate improved to 12.5%, up from 11.8% in Q3 2023, indicating better performance in the gaming segment[6]. - Total operating revenues at City of Dreams for Q3 2024 were US$602.5 million, up from US$542.5 million in Q3 2023[26]. - Rolling chip volume for Q3 2024 was US$3.30 billion, down from US$4.43 billion in Q3 2023, with a win rate of 3.97% compared to 2.48%[27]. - Mass market table games drop increased to US$1.40 billion in Q3 2024, compared to US$1.32 billion in Q3 2023, with a hold percentage of 32.3%[28]. Cash Flow and Debt Management - Cash and cash equivalents as of September 30, 2024, were US$580.6 million, with restricted cash of US$125.2 million[40]. - Net cash provided by operating activities for Q3 2024 was US$126.3 million, compared to US$114.7 million in Q3 2023[43]. - Net cash used in investing activities for Q3 2024 was US$37.9 million, primarily for property and equipment acquisitions of US$28.6 million[45]. - Net cash used in financing activities for the nine months ended September 30, 2024, was US$178.6 million, primarily due to the repayment of US$994.2 million under the 2020 Credit Facilities and financing costs of US$27.2 million, offset by US$750.0 million from the issuance of 2032 Senior Notes and US$100.3 million from the drawdown of the revolving credit facility[53]. - As of September 30, 2024, the company's total gross indebtedness amounted to US$5,008.2 million, including US$1.15 billion in 2029 Senior Notes and US$750.0 million in 2032 Senior Notes[55]. Asset and Liability Overview - Total assets decreased to US$5,851.5 million as of September 30, 2024, from US$5,967.2 million at the end of 2023[60]. - The company reported total liabilities of US$6,072.2 million as of September 30, 2024, compared to US$6,198.2 million at the end of 2023[60].

FOR IMMEDIATE RELEASE Melco Announces Unaudited Third Quarter 2024 Earnings Macau, Tuesday, November 5, 2024 – Melco Resorts & Entertainment Limited (Nasdaq: MLCO) ("Melco" or the "Company"), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the third quarter of 2024. Total operating revenues for the third quarter of 2024 were US$1.18 billion, representing an increase of approximately 16% from US$1.02 billion for the compa ...

Financial Data and Key Metrics - Group-wide adjusted property EBITDA for Q3 2024 was $323 million, a 7% increase compared to Q2 2024 [14] - Favorable win rates at City of Dreams (COD) Macau and Studio City positively impacted property EBITDA by approximately $27 million [14] - Operational expenses (OpEx) in Macau remained stable at approximately $2.9 million per day, excluding the cost of the Studio City residency conference [15] - Consolidated cash on hand as of September 30, 2024, was approximately $1.2 billion, with over $3 billion in available liquidity [16] - Total debt declined by approximately $60 million in Q3 2024 following the repurchase of Studio City bonds due in 2025 [17] - The company repurchased 20.7 million ADSs for approximately $12 million during the quarter, with 17.7 million ADSs cancelled [17] Business Line Performance - In Macau, the revamped loyalty program, including the Signature Club for premium mass customers, is showing benefits in increasing efficiency in player reinvestment [6][7] - City of Dreams Manila improved its performance quarter-to-quarter despite added competition [12] - City of Dreams Mediterranean and satellite casinos in Cypress faced challenges due to regional conflict but saw solid increases in GGR and EBITDA through Q3 2024 [12] - City of Dreams Sri Lanka opened in October 2024, with the casino and Nuwa hotel on track to open in the second half of 2025 [13] Market Performance - Macau gaming market continues to grow, with projects planned to attract and retain high-quality patrons, including enhancements to accessibility and customer flow at City of Dreams and a revamp of Studio City's high-limit gaming area [10][11] - The House of Dancing Water is expected to relaunch in Q2 2025 [11] - During Golden Week, mass drop at Melco properties increased by over 20% year-over-year, with record mass drop updates at both City of Dreams and Studio City [23][24] Strategic Direction and Industry Competition - The company is focused on operational discipline and driving revenue to improve EBITDA margins [15] - The promotional environment in Macau is stabilizing, with the company focusing on retaining top players and creating an aspirational path for mid-level players [31][32][33] - The company aims to return to dividend-paying status in the second half of 2025, subject to business conditions [27] - Capital allocation priorities include debt reduction, with potential for opportunistic share repurchases if equity value becomes significantly dislocated [36][37] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the Macau market, with strong performance during Golden Week and ongoing investments in property enhancements expected to drive future growth [23][24][25] - The company sees significant potential to return to 2019 EBITDA levels, with 2025 expected to be a pivotal year for realizing this potential [51][52] - The company aims to regain its position as the third-largest operator in Macau by 2025, though achieving 2019 market share levels may take longer due to fewer hotel rooms and gaming tables [54][55] Other Important Information - Total depreciation and amortization expense for Q4 2024 is expected to be approximately $135 million to $140 million [18] - Corporate expense for Q4 2024 is expected to be approximately $20 million, with consolidated net interest expense expected to be $120 million to $125 million [18] - CapEx for Q4 2024 is expected to be approximately $115 million, with preliminary plans for 2025 targeting around $400 million, including $70 million to $75 million for Sri Lanka [43][44] Q&A Session Summary Question: Performance during Golden Week and dividend resumption timeline [21][22] - Golden Week performance was strong, with mass drop up over 20% year-over-year and record mass drop updates at both City of Dreams and Studio City [23][24] - Dividend resumption is targeted for the second half of 2025, subject to business conditions and debt reduction progress [27] Question: Promotional environment and share repurchase plans [31][34] - The promotional environment is stabilizing, with the company focusing on effective allocation of promotional spending [32][33] - Share repurchases are opportunistic, with no programmatic plans, but the company remains open to further repurchases if equity value becomes significantly dislocated [36][37] Question: Impact of luxury spending trends on premium mass customers [40] - Post-COVID, Chinese consumers are prioritizing experiences over luxury goods, benefiting Macau's gaming and entertainment offerings [41][42] Question: CapEx guidance for 2024 and 2025 [43] - CapEx for Q4 2024 is expected to be approximately $115 million, with 2025 CapEx targeting around $400 million, including $70 million to $75 million for Sri Lanka [43][44] Question: Dividend trigger and EBITDA potential [47][48] - No specific net debt to EBITDA trigger for dividend resumption; the decision will be holistic, considering leverage ratios and business outlook [50] - Significant potential exists to return to 2019 EBITDA levels, with 2025 expected to be a pivotal year for realizing this potential [51][52] Question: Promotional program and OpEx guidance [58][60] - The company relaunched its player program in mid-September, focusing on guaranteed benefits for top players and new promotional offerings for new entrants [63][64] - OpEx per day is expected to increase to $3.0 million by the end of 2024, with a further increase of $0.1 million per day expected with the relaunch of the House of Dancing Water in Q2 2025 [61][62]