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Melco Resorts & Entertainment(MLCO) - 2024 Q3 - Quarterly Report
MLCOMelco Resorts & Entertainment(MLCO)2024-11-29 11:06
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Financial Performance - Melco Resorts Finance Limited reported a total revenue of HK5.2billion(approximatelyUS5.2 billion (approximately US663 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 HK1.8billion(approximatelyUS1.8 billion (approximately US230 million), reflecting a 20% year-over-year growth[6]. - The company reported a net income of HK800million(approximatelyUS800 million (approximately US102 million) for the third quarter, a significant improvement from a net loss of HK200millioninthesamequarterlastyear[6].−TotaloperatingrevenuesforQ32024wereUS200 million in the same quarter last year[6]. - Total operating revenues for Q3 2024 were US997.4 million, a 17.9% increase from US846.1millioninQ32023[23].−NetincomeforQ32024wasUS846.1 million in Q3 2023[23]. - Net income for Q3 2024 was US10.6 million, compared to a net loss of US26.6millioninQ32023[24].−TotaloperatingrevenuesfortheninemonthsendedSeptember30,2024,wereUS26.6 million in Q3 2023[24]. - Total operating revenues for the nine months ended September 30, 2024, were US2.98 billion, a 32.5% increase from US2.25billioninthesameperiodof2023[36].−NetincomefortheninemonthsendedSeptember30,2024,wasUS2.25 billion in the same period of 2023[36]. - Net income for the nine months ended September 30, 2024, was US19.5 million, compared to a net loss of US145.9millioninthecomparableperiodof2023[37].VisitorandMarketTrends−Userdataindicateda25145.9 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 HK1.2 billion (approximately US153million)innewtechnologyandproductdevelopmenttoenhancecustomerexperienceandoperationalefficiency[6].−ThecompanyplanstoexpanditsmarketpresencebyopeningtwonewgamingvenuesinMacaubytheendof2025[6].−MelcoResortsFinanceLimitedhasinitiateddiscussionsforpotentialacquisitionstostrengthenitsportfoliointheAsia−Pacificregion[9].GamingPerformance−Melco′sgamingmachinewinrateimprovedto12.5153 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 US602.5 million, up from US542.5millioninQ32023[26].−RollingchipvolumeforQ32024wasUS542.5 million in Q3 2023[26]. - Rolling chip volume for Q3 2024 was US3.30 billion, down from US4.43billioninQ32023,withawinrateof3.974.43 billion in Q3 2023, with a win rate of 3.97% compared to 2.48%[27]. - Mass market table games drop increased to US1.40 billion in Q3 2024, compared to US1.32billioninQ32023,withaholdpercentageof32.31.32 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 US580.6 million, with restricted cash of US125.2million[40].−NetcashprovidedbyoperatingactivitiesforQ32024wasUS125.2 million[40]. - Net cash provided by operating activities for Q3 2024 was US126.3 million, compared to US114.7millioninQ32023[43].−NetcashusedininvestingactivitiesforQ32024wasUS114.7 million in Q3 2023[43]. - Net cash used in investing activities for Q3 2024 was US37.9 million, primarily for property and equipment acquisitions of US28.6million[45].−NetcashusedinfinancingactivitiesfortheninemonthsendedSeptember30,2024,wasUS28.6 million[45]. - Net cash used in financing activities for the nine months ended September 30, 2024, was US178.6 million, primarily due to the repayment of US994.2millionunderthe2020CreditFacilitiesandfinancingcostsofUS994.2 million under the 2020 Credit Facilities and financing costs of US27.2 million, offset by US750.0millionfromtheissuanceof2032SeniorNotesandUS750.0 million from the issuance of 2032 Senior Notes and US100.3 million from the drawdown of the revolving credit facility[53]. - As of September 30, 2024, the company's total gross indebtedness amounted to US5,008.2million,includingUS5,008.2 million, including US1.15 billion in 2029 Senior Notes and US750.0millionin2032SeniorNotes[55].AssetandLiabilityOverview−TotalassetsdecreasedtoUS750.0 million in 2032 Senior Notes[55]. Asset and Liability Overview - Total assets decreased to US5,851.5 million as of September 30, 2024, from US5,967.2millionattheendof2023[60].−ThecompanyreportedtotalliabilitiesofUS5,967.2 million at the end of 2023[60]. - The company reported total liabilities of US6,072.2 million as of September 30, 2024, compared to US$6,198.2 million at the end of 2023[60].