Core Insights - Melco Resorts reported revenue of $1.33 billion for Q2 2025, a 14.5% year-over-year increase, with an EPS of $0.23 compared to $0.06 a year ago, indicating strong financial performance [1] - The revenue exceeded the Zacks Consensus Estimate of $1.25 billion by 6.01%, and the EPS surpassed the consensus estimate of $0.09 by 155.56% [1] Financial Performance Metrics - Average Daily Rate for City of Dreams Manila was $164.00, slightly above the estimated $163.50 [4] - Revenue Per Available Room for City of Dreams Manila was $156.00, below the estimated $158.53 [4] - Occupancy Rate for City of Dreams Manila was 95%, lower than the average estimate of 97% [4] - Total segment operating revenues for Mocha and Other were $27.9 million, below the estimate of $28.77 million, representing a year-over-year decline of 9.1% [4] - Total segment operating revenues for Altira Macau were $28.3 million, exceeding the estimate of $27.72 million, but down 3.4% year-over-year [4] - Total segment operating revenues for City of Dreams were $710.5 million, surpassing the estimate of $672.72 million, reflecting a 23.3% year-over-year increase [4] - Total segment operating revenues for Studio City were $388.2 million, above the estimate of $372.61 million, marking a 10.2% year-over-year increase [4] - Total segment operating revenues for City of Dreams Manila were $98.5 million, slightly below the estimate of $98.89 million, with a year-over-year decline of 9.6% [4] - Total segment operating revenues for Cyprus Operations were $72.3 million, exceeding the estimate of $61.72 million, showing a 23.2% year-over-year increase [4] - Adjusted EBITDA for Mocha and Other was $5.21 million, below the average estimate of $6.21 million [4] - Adjusted EBITDA for Altira Macau was $0.84 million, significantly better than the estimated -$0.31 million [4] - Adjusted EBITDA for City of Dreams was $225.64 million, exceeding the estimate of $188.99 million [4] Stock Performance - Melco's shares returned +1.8% over the past month, compared to the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company's adjusted property EBITDA for 2025 grew 25% year over year to approximately $378 million, with adjusted EBITDA excluding VIP hold at approximately $354 million [10] - Macau property EBITDA margin reached 29.2% in 2025, marking the second highest on record [11] - Available liquidity stood at $2.3 billion, with consolidated cash on hand of approximately $1.2 billion as of the end of 2025 [11] Business Line Data and Key Metrics Changes - Macau property EBITDA grew by 35% year over year and 13% quarter to quarter, with mass table games revenue at City of Dreams and Studio City reaching all-time highs [5][6] - The House of Dancing Water reopened in May with an average occupancy of around 98%, contributing to growing non-gaming revenue [6] - In the Philippines, cost reduction initiatives led to higher profitability and a recovery in gaming revenue in July [8] Market Data and Key Metrics Changes - Visitation to City of Dreams Macau increased by 31% year on year over the second quarter, with average daily property visitation reaching record levels in July [6] - In Cyprus, gaming revenue has surpassed pre-war levels following the Iran-Israel conflict, with strong forward bookings for the summer [9] Company Strategy and Development Direction - The company is focused on enhancing customer experience through renovations and new offerings, including a full renovation of the Countdown Hotel planned for 2026 [7] - The strategic review in the Philippines is ongoing, with updates to be provided when available [8] - The company aims to optimize its gaming units by relocating machines from closed satellite casinos to City of Dreams and Studio City [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's performance, citing a strong first half and a stabilizing Chinese economy [25][26] - The company is cautiously optimistic about the performance of City of Dreams Sri Lanka, which is expected to open new opportunities in the region [9][51] Other Important Information - The company repurchased approximately $120 million of its shares in the second quarter, prioritizing shareholder value while focusing on debt reduction [13] - An impairment in goodwill of approximately $56 million was recognized in the second quarter due to the closure of Grand Dragon Casino and three Mocha Clubs [14] Q&A Session Summary Question: Plans for remodeling gaming floors at COD or Studio City - Management highlighted ongoing improvements in product and customer experience, with significant renovations planned for the Countdown Hotel and enhancements to gaming areas [16][17][18] Question: Expectations for normalized EBITDA improvement in Q3 - Management indicated strong momentum from the first half and positive market conditions, suggesting potential for improved EBITDA in Q3 [25][26] Question: Competitive dynamics in the market - Management acknowledged the competitive nature of Macau but emphasized their focus on product and service differentiation rather than aggressive pricing [29][30][31] Question: Contribution of House of Dancing Water to gaming business - The House of Dancing Water has positively impacted visitation and F&B covers, although there is room for improvement in converting visitors into gaming customers [70][74] Question: Update on the Philippines market and transaction - Management noted stabilization in the Manila market and ongoing strategic review for potential transactions, with cautious optimism for future performance [78][76]

Financial Data and Key Metrics Changes - The company achieved a group-wide adjusted property EBITDA of approximately $378 million for Q2 2025, representing a 25% year-over-year growth [11] - Macau property EBITDA grew by 35% year-over-year and 13% quarter-over-quarter, with a margin of 29.2%, the second highest on record [4][12] - Consolidated cash on hand was approximately $1.2 billion, with available liquidity of $2.3 billion as of the end of Q2 2025 [12] Business Line Data and Key Metrics Changes - Mass table games revenue at City of Dreams and Studio City reached all-time highs, contributing to increased gaming volumes and revenues [4] - The House of Dancing Water reopened in May with an average occupancy of around 98%, significantly boosting non-gaming revenue [5] - In the Philippines, the company implemented cost reduction initiatives, leading to higher profitability and a recovery in gaming revenue in July [7] Market Data and Key Metrics Changes - Visitation to City of Dreams Macau increased by 31% year-over-year in Q2, with average daily property visitation reaching record levels in July [5] - In Cyprus, gaming revenue has surpassed pre-war levels following the Iran-Israel conflict, with positive forward bookings for the summer [8] Company Strategy and Development Direction - The company is focusing on enhancing customer experience through renovations and new offerings, including a full renovation of the Countdown Hotel planned for 2026 [6] - The strategic review in the Philippines is ongoing, with updates to be provided in the future [7] - The opening of City of Dreams Sri Lanka is expected to create new opportunities in the premium segment of the Indian customer base [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's performance, citing a strong first half of 2025 and a stabilizing Chinese economy [28] - The company is cautiously optimistic about Q3, expecting to carry momentum from June into July [29] - Management noted that they are continuously monitoring the competitive landscape and adjusting strategies as necessary [36] Other Important Information - The company repurchased approximately $120 million of its shares in Q2, taking advantage of market dislocation [14] - An impairment in goodwill of approximately $56 million was recognized in Q2 due to the closure of Grand Dragon Casino and three Mocha Clubs [15] Q&A Session Summary Question: Plans for remodeling gaming floors at COD or Studio City - Management highlighted ongoing improvements in product and customer experience, with significant renovations planned for the Countdown Hotel and enhancements to gaming areas [18][19] Question: Expectations for normalized EBITDA in Q3 - Management indicated strong market conditions and momentum from previous quarters, suggesting a positive outlook for Q3 [28][29] Question: Competitive dynamics in the market - Management acknowledged the competitive nature of Macau but emphasized their focus on product and service differentiation rather than aggressive pricing [34][36] Question: Contribution of House of Dancing Water to gaming business - The House of Dancing Water has positively impacted visitation and F&B covers, but management sees opportunities to improve conversion rates to gaming customers [75] Question: Update on the Philippines market - Management noted stabilization in the Manila market and positive results from cost reduction initiatives, with expectations for improved performance in the second half of the year [78][79]

"In the Philippines, although the heightened competitive environment continues to impact performance, we have been implementing a variety of initiatives to improve performance and reduce cost. In Cyprus, City of Dreams Mediterranean and our satellite casinos exhibited solid results despite the events in the Middle East in June 2025 and we are cautiously optimistic about the performance for the remainder of the peak season. "And finally, we are very excited to have City of Dreams Sri Lanka open on August 1, ...

Core Insights - Macau's recovery from pandemic lows is accelerating, with Melco Resorts & Entertainment (MLCO) benefiting significantly from this trend [1][2] Financial Performance - Melco reported strong performance in Q1, surpassing revenue and earnings estimates, driven by increased visitation during peak travel periods like Golden Week [2] - The mass gaming segment saw a notable rise in table drop volumes at key properties, City of Dreams and Studio City [2] - The stock has gained 84.8% over the past three months, outperforming the industry growth of 40.3% [9][11] Strategic Initiatives - CEO Lawrence Ho highlighted that recent gains are attributed to operational improvements, including property renovations and the relaunch of "House of Dancing Water," rather than solely recovery [3] - Melco is focusing on differentiating its offerings to align with changing consumer preferences in China, emphasizing experiences over luxury retail [3] Market Environment - The current pro-consumption policy in China supports domestic tourism and discretionary spending, providing a favorable backdrop for Melco [4] - However, challenges exist, particularly with non-Macau assets facing increased competition, necessitating cost revisions and strategic reviews [4] Competitive Landscape - Melco faces intensified competition from U.S.-listed operators like Wynn Resorts and MGM Resorts, both of which are expanding their market share and enhancing their offerings [6][7] - Wynn's focus on premium clientele and MGM's family-friendly attractions are particularly relevant as they align with Melco's diversification strategy [6][7] Future Outlook - Sustaining top-line growth will depend on disciplined reinvestment, diversification of non-gaming revenues, and navigating regional volatility [5] - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 52.6% for 2025 and 56.3% for 2026, suggesting a positive outlook for Melco [14]

Core Viewpoint - Melco Resorts & Entertainment Limited has appointed Mr. John Peter Ben Wang as an independent non-executive director, effective June 13, 2025, enhancing the board's expertise and governance [1][3]. Company Overview - Melco Resorts & Entertainment Limited is a developer, owner, and operator of integrated resort facilities in Asia and Europe, with operations including City of Dreams and Altira Macau in Macau, City of Dreams Manila in the Philippines, and City of Dreams Mediterranean in Cyprus [4]. - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, who serves as the Chairman, Executive Director, and Chief Executive Officer [5]. Appointment Details - Mr. Wang has been appointed as the chairman of the audit and risk committee and is a member of the compensation committee and nominating and corporate governance committee [1]. - Mr. Wang is recognized as an "audit committee financial expert" as defined in Item 16A of Form 20-F, indicating his qualifications in financial oversight [1]. Mr. Wang's Background - Mr. Wang has extensive experience in finance, accounting, and investment banking, having previously served as a director of Melco from November 2006 to August 2016 and as Deputy Chairman and Executive Director of Summit Ascent Holdings Limited from 2011 to 2019 [2]. - He was the chief financial officer of Melco International Development Limited from 2004 to 2009 and is a chartered accountant with qualifications from the Institute of Chartered Accountants in England and Wales [2].

Group 1 - Melco Resorts & Entertainment Limited will cease operations at Grand Dragon Casino and three Mocha Clubs by the end of 2025, reallocating employees to other properties in Macau [1] - The company plans to apply for authorizations to continue operations at three other Mocha Clubs after December 2025, pending compliance with legal and regulatory requirements [2] - Melco operates integrated resort facilities in Asia and Europe, including City of Dreams and Altira Macau, and is the largest non-casino operator of electronic gaming machines in Macau [4] Group 2 - The company is majority owned by Melco International Development Limited, which is led by Mr. Lawrence Ho, the Chairman and CEO [5] - Melco's business includes operations in the Philippines and Europe, with integrated resorts and licensed satellite casinos [4]

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]