EX-99.1 2 d907342dex991.htm UNAUDITED RESULTS FOR THIRD QUARTER OF 2024 Unaudited Results for Third Quarter of 2024

Exhibit 99.1

 

LOGO

Melco Announces Unaudited Third Quarter 2024 Earnings

MACAU, Nov. 05, 2024 (GLOBE NEWSWIRE) — 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 comparable period in 2023. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations, led by the continued recovery in inbound tourism to Macau during the third quarter of 2024.

Operating income for the third quarter of 2024 was US$138.6 million, compared with operating income of US$94.7 million in the third quarter of 2023.

Melco generated Adjusted Property EBITDA(1) of US$322.5 million in the third quarter of 2024, compared with Adjusted Property EBITDA of US$280.6 million in the third quarter of 2023.

Net income attributable to Melco Resorts & Entertainment Limited for the third quarter of 2024 was US$27.3 million, or US$0.06 per ADS, compared with the net loss attributable to Melco Resorts & Entertainment Limited of US$16.3 million, or US$0.04 per ADS, in the third quarter of 2023. The net loss attributable to noncontrolling interests was US$14.6 million and US$20.5 million during the third quarters of 2024 and 2023, respectively, the majority of which related to the net loss attributable to Studio City and City of Dreams Mediterranean and Other.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Our initiatives to activate areas throughout our properties and drive visitation are coming together. We launched a revamped loyalty program, opened a new Signature Club premium slot area at City of Dreams, and a highly themed slot area called the Dragon Zone at Studio City, in partnership with Aristocrat Gaming. We are enhancing accessibility into City of Dreams with a new light tunnel entrance which is complemented by live performances. We expect to continue to unveil new and exciting projects to support the ongoing growth in Macau.

“In Manila, despite added competition, City of Dreams’ property EBITDA increased sequentially. City of Dreams Mediterranean and our satellite casinos in Cyprus continue to face challenges due to the conflicts in the region but have had solid increases in property EBITDA quarter-to-quarter.”

City of Dreams Third Quarter Results

For the quarter ended September 30, 2024, total operating revenues at City of Dreams were US$563.9 million, compared with US$506.2 million in the third quarter of 2023. City of Dreams generated Adjusted EBITDA of US$162.8 million in the third quarter of 2024, compared with Adjusted EBITDA of US$153.9 million in the third quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments.

Rolling chip volume was US$3.30 billion for the third quarter of 2024 versus US$4.43 billion in the third quarter of 2023. The rolling chip win rate was 3.97% in the third quarter of 2024 versus 2.48% in the third quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$1.40 billion in the third quarter of 2024, compared with US$1.32 billion in the third quarter of 2023. The mass market table games hold percentage was 32.3% in the third quarter of 2024, compared with 32.1% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$944.1 million, compared with US$807.5 million in the third quarter of 2023. The gaming machine win rate was 3.2% in the third quarter of 2024 versus 3.6% in the third quarter of 2023.

Total non-gaming revenue at City of Dreams in the third quarter of 2024 was US$78.7 million, compared with US$73.6 million in the third quarter of 2023.

 

1

Altira Macau Third Quarter Results

For the quarter ended September 30, 2024, total operating revenues at Altira Macau were US$30.5 million, compared with US$24.2 million in the third quarter of 2023. Altira Macau generated negative Adjusted EBITDA of US$1.1 million in the third quarter of 2024, compared with negative Adjusted EBITDA of US$3.8 million in the third quarter of 2023.

In the mass market table games segment, drop was US$135.5 million in the third quarter of 2024 versus US$140.0 million in the third quarter of 2023. The mass market table games hold percentage was 21.7% in the third quarter of 2024, compared with 18.9% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$148.0 million, compared with US$86.5 million in the third quarter of 2023. The gaming machine win rate was 1.8% in the third quarter of 2024 versus 3.9% in the third quarter of 2023.

Total non-gaming revenue at Altira Macau in the third quarter of 2024 was US$5.4 million, compared with US$5.3 million in the third quarter of 2023.

Mocha and Other Third Quarter Results

Total operating revenues from Mocha and Other were US$30.6 million in the third quarter of 2024, compared with US$30.1 million in the third quarter of 2023. Mocha and Other generated Adjusted EBITDA of US$6.9 million in both the third quarters of 2024 and 2023.

Mass market table games drop was US$57.2 million in the third quarter of 2024 versus US$47.3 million in the third quarter of 2023. The mass market table games hold percentage was 16.6% in the third quarter of 2024 versus 18.6% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$519.1 million, compared with US$515.8 million in the third quarter of 2023. The gaming machine win rate was 4.3% in the third quarter of 2024 versus 4.5% in the third quarter of 2023.

Studio City Third Quarter Results

For the quarter ended September 30, 2024, total operating revenues at Studio City were US$364.7 million, compared with US$277.7 million in the third quarter of 2023. Studio City generated Adjusted EBITDA of US$92.8 million in the third quarter of 2024, compared with Adjusted EBITDA of US$67.7 million in the third quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.

Studio City’s rolling chip volume was US$494.8 million in the third quarter of 2024 versus US$713.6 million in the third quarter of 2023. The rolling chip win rate was 5.57% in the third quarter of 2024 versus 1.78% in the third quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$912.9 million in the third quarter of 2024, compared with US$809.1 million in the third quarter of 2023. The mass market table games hold percentage was 30.7% in the third quarter of 2024, compared with 27.5% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$853.0 million, compared with US$673.9 million in the third quarter of 2023. The gaming machine win rate was 3.3% in the third quarter of 2024, compared with 3.2% in the third quarter of 2023.

Total non-gaming revenue at Studio City in the third quarter of 2024 was US$89.3 million, compared with US$79.0 million in the third quarter of 2023.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2024, total operating revenues at City of Dreams Manila were US$118.9 million, compared with US$124.9 million in the third quarter of 2023. City of Dreams Manila generated Adjusted EBITDA of US$45.9 million in the third quarter of 2024, compared with Adjusted EBITDA of US$48.7 million in the comparable period of 2023. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in rolling chip and mass market table games segments, partially offset by better performance in the gaming machine segment.

City of Dreams Manila’s rolling chip volume was US$614.3 million in the third quarter of 2024 versus US$374.6 million in the third quarter of 2023. The rolling chip win rate was 3.88% in the third quarter of 2024 versus 6.48% in the third quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

 

2

Mass market table games drop decreased to US$172.4 million in the third quarter of 2024, compared with US$214.1 million in the third quarter of 2023. The mass market table games hold percentage was 32.8% in the third quarter of 2024, compared with 29.7% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$1.11 billion, compared with US$1.03 billion in the third quarter of 2023. The gaming machine win rate was 5.2% in the third quarter of 2024 versus 4.9% in the third quarter of 2023.

Total non-gaming revenue at City of Dreams Manila was US$29.0 million in both the third quarters of 2024 and 2023.

City of Dreams Mediterranean and Other Third Quarter Results

The Company operates three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean.

Total operating revenues at City of Dreams Mediterranean and Other for the quarter ended September 30, 2024 were US$64.4 million, compared with US$53.4 million in the third quarter of 2023. City of Dreams Mediterranean and Other generated Adjusted EBITDA of US$15.1 million in the third quarter of 2024, compared with Adjusted EBITDA of US$7.2 million in the third quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily attributable to the ramp up of operations following the opening of City of Dreams Mediterranean in mid-2023, which led to a better performance in the gaming machine segment and non-gaming operations.

Rolling chip volume was US$14.6 million for the third quarter of 2024 versus US$3.9 million in the third quarter of 2023. The rolling chip win rate was negative 0.92% in the third quarter of 2024, compared with negative 7.05% in the third quarter of 2023. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$138.8 million in the third quarter of 2024, compared with US$97.2 million in the third quarter of 2023. The mass market table games hold percentage was 20.7% in the third quarter of 2024, compared with 20.6% in the third quarter of 2023.

Gaming machine handle for the third quarter of 2024 was US$558.9 million, compared with US$466.5 million in the third quarter of 2023. The gaming machine win rate was 5.2% in both the third quarters of 2024 and 2023.

Total non-gaming revenue at City of Dreams Mediterranean and Other in the third quarter of 2024 was US$25.0 million, compared with US$16.8 million in the third quarter of 2023.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2024 were US$121.0 million, which mainly included interest expense, net of amounts capitalized of US$121.4 million, partially offset by interest income of US$3.8 million.

Depreciation and amortization costs of US$135.9 million were recorded in the third quarter of 2024, of which US$5.0 million related to the amortization expense for land use rights.

The Adjusted EBITDA for Studio City for the three months ended September 30, 2024 referred to above was US$24.7 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated November 5, 2024 (the “Studio City Earnings Release”). The Adjusted EBITDA of Studio City contained in the Studio City Earnings Release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain gaming concession related costs and certain intercompany costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of September 30, 2024 aggregated to US$1.25 billion, including US$125.7 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$7.17 billion at the end of the third quarter of 2024, a reduction of approximately US$57 million compared to the total debt, net balance as of June 30, 2024, primarily as a result of the repurchases of the 6.00% senior notes due 2025 issued by Studio City Finance Limited. Available liquidity, including cash and undrawn revolving credit facilities as of September 30, 2024 was approximately US$3 billion.

The Company repurchased approximately 20.7 million ADSs for approximately US$112 million during the third quarter using cash on hand. Approximately 17.7 million ADSs and underlying ordinary shares were subsequently cancelled.

Capital expenditures for the third quarter of 2024 were US$64.6 million, which included costs related to enhancement projects at City of Dreams in Macau and Studio City, and the development project in Sri Lanka.

 

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Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2024 financial results on Tuesday, November

5, 2024 at 8:30 a.m. Eastern Time (or 9:30 p.m. Singapore Time).

To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers and a unique Personal PIN which can be used to join the conference.

Online Registration Link:

https://register.vevent.com/register/BI36fd1894ac334b8cacbf6b61fafdc262

An audio webcast and replay of the conference call will also be available at http://www.melco-resorts.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) the pace of recovery from the impact of COVID-19 on our business, our industry and the global economy, (ii) risks associated with the amended Macau gaming law and its implementation by the Macau government, (iii) changes in the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, and (viii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

 

  (1)

“Adjusted EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), integrated resort and casino rent and other non-operating income and expenses. “Adjusted Property EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, integrated resort and casino rent, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Company’s performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Company’s calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The use of Adjusted Property EBITDA and Adjusted EBITDA has material limitations as an analytical tool, as Adjusted Property EBITDA and Adjusted EBITDA does not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. Reconciliations of Adjusted EBITDA and Adjusted Property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

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  (2)

“Adjusted net income/loss” is net income/loss before pre-opening costs, development costs, property charges and other and gain/loss on extinguishment of debt, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share (“EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income/loss and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company operates City of Dreams Mediterranean in Limassol in the Republic of Cyprus (www.cityofdreamsmed.com.cy). The Company also continues to operate three satellite casinos in other cities in Cyprus (the “Cyprus Casinos”). For more information about the Company, please visit www.melco-resorts.com.

The Company is majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

For the investment community, please contact:

Jeanny Kim

Senior Vice President, Group Treasurer

Tel: +852 2598 3698

Email: jeannykim@melco-resorts.com

For media enquiries, please contact:

Chimmy Leung

Executive Director, Corporate Communications

Tel: +852 3151 3765

Email: chimmyleung@melco-resorts.com

 

5

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except share and per share data)

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  

Operating revenues:

        

Casino

   $ 944,352     $ 812,086     $ 2,800,640     $ 2,179,536  

Rooms

     110,993       96,113       313,217       234,776  

Food and beverage

     73,512       60,370       211,191       143,668  

Entertainment, retail and other

     46,276       48,646       122,147       123,654  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

     1,175,133       1,017,215       3,447,195       2,681,634  
 

 

 

    

 

 

    

 

 

    

 

 

  

Operating costs and expenses:

        

Casino

     (624,121 )      (533,311 )      (1,866,346 )      (1,437,761 ) 

Rooms

     (33,528 )      (25,345 )      (93,046 )      (59,567 ) 

Food and beverage

     (59,828 )      (48,251 )      (168,277 )      (111,669 ) 

Entertainment, retail and other

     (22,868 )      (25,770 )      (62,515 )      (68,336 ) 

General and administrative

     (140,506 )      (130,447 )      (411,849 )      (358,776 ) 

Payments to the Philippine Parties

     (10,508 )      (9,979 )      (29,532 )      (32,638 ) 

Pre-opening costs

     (5,763 )      (10,184 )      (10,935 )      (40,444 ) 

Development costs

     (1,469 )      —        (3,541 )      —   

Amortization of land use rights

     (4,993 )      (5,672 )      (14,948 )      (16,990 ) 

Depreciation and amortization

     (130,861 )      (134,996 )      (392,218 )      (381,666 ) 

Property charges and other

     (2,103 )      1,442       (6,317 )      (14,445 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

     (1,036,548 )      (922,513 )      (3,059,524 )      (2,522,292 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     138,585       94,702       387,671       159,342  
 

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating income (expenses):

        

Interest income

     3,769       6,064       12,600       17,837  

Interest expense, net of amounts capitalized

     (121,438 )      (131,128 )      (366,950 )      (363,597 ) 

Other financing costs

     (2,061 )      (1,097 )      (5,661 )      (3,021 ) 

Foreign exchange losses, net

     (1,790 )      (3,833 )      (1,283 )      (2,292 ) 

Other income, net

     601       438       3,206       1,756  

(Loss) gain on extinguishment of debt

     (114 )      80       (983 )      80  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total non-operating expenses, net

     (121,033 )      (129,476 )      (359,071 )      (349,237 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax

     17,552       (34,774 )      28,600       (189,895 ) 

Income tax (expense) benefit

     (4,862 )      (2,021 )      (16,647 )      1,295  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

     12,690       (36,795 )      11,953       (188,600 ) 

Net loss attributable to noncontrolling interests

     14,567       20,492       51,864       67,568  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

   $ 27,257     $ (16,303 )    $ 63,817     $ (121,032 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited
per share:

        

Basic

   $ 0.021     $ (0.012 )    $ 0.049     $ (0.092 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ 0.021     $ (0.012 )    $ 0.049     $ (0.092 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited
per ADS:

        

Basic

   $ 0.063     $ (0.037 )    $ 0.146     $ (0.276 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ 0.063     $ (0.037 )    $ 0.146     $ (0.276 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding used in net income (loss) attributable to Melco Resorts & Entertainment Limited per share calculation:

        

Basic

     1,294,946,572       1,311,270,775       1,308,860,794       1,315,728,852  
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

     1,295,758,173       1,311,270,775       1,312,221,773       1,315,728,852  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

6

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

    September 30,     December 31,  
    2024     2023  
    (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 1,120,850     $ 1,310,715  

Restricted cash

     395       27  

Accounts receivable, net

     82,884       91,638  

Receivables from affiliated companies

     1,430       797  

Inventories

     31,977       29,427  

Prepaid expenses and other current assets

     120,058       111,688  
 

 

 

    

 

 

  

Total current assets

     1,357,594       1,544,292  
 

 

 

    

 

 

  

Property and equipment, net

     5,336,922       5,533,994  

Intangible assets, net

     301,292       304,652  

Goodwill

     81,979       81,582  

Long-term prepayments, deposits and other assets, net

     133,861       100,320  

Restricted cash

     125,344       125,094  

Operating lease right-of-use assets

     87,243       62,356  

Land use rights, net

     570,593       582,782  
 

 

 

    

 

 

  

Total assets

   $ 7,994,828     $ 8,335,072  
 

 

 

    

 

 

  

LIABILITIES AND DEFICIT

    

Current liabilities:

    

Accounts payable

   $ 22,117     $ 11,752  

Accrued expenses and other current liabilities

     999,055       1,008,316  

Income tax payable

     33,055       28,183  

Operating lease liabilities, current

     18,561       19,685  

Finance lease liabilities, current

     35,101       35,307  

Current portion of long-term debt, net

     34,248       —   

Payables to affiliated companies

     64       377  
 

 

 

    

 

 

  

Total current liabilities

     1,142,201       1,103,620  
 

 

 

    

 

 

  

Long-term debt, net

     7,132,126       7,472,620  

Other long-term liabilities

    320,838       322,591  

Deferred tax liabilities, net

     36,877       34,959  

Operating lease liabilities, non-current

     78,100       53,858  

Finance lease liabilities, non-current

     175,917       187,474  
 

 

 

    

 

 

  

Total liabilities

     8,886,059       9,175,122  
 

 

 

    

 

 

  

Deficit:

    

Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; 1,404,679,067 and 1,404,679,067 shares issued; 1,259,127,649 and 1,311,270,775 shares outstanding, respectively

     14,047       14,047  

Treasury shares, at cost; 145,551,418 and 93,408,292 shares, respectively

     (338,177 )      (255,068 ) 

Additional paid-in capital

     3,099,944       3,109,212  

Accumulated other comprehensive losses

     (78,168 )      (98,599 ) 

Accumulated losses

     (3,993,055 )      (4,056,872 ) 
 

 

 

    

 

 

  

Total Melco Resorts & Entertainment Limited shareholders’ deficit

     (1,295,409 )      (1,287,280 ) 

Noncontrolling interests

     404,178       447,230  
 

 

 

    

 

 

  

Total deficit

     (891,231 )      (840,050 ) 
 

 

 

    

 

 

  

Total liabilities and deficit

   $ 7,994,828     $ 8,335,072  
 

 

 

    

 

 

  

 

7

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited (Unaudited)

(In thousands, except share and per share data)

 

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

   $ 27,257     $ (16,303 )    $ 63,817     $ (121,032 ) 

Pre-opening costs

     5,763       10,184       10,935       40,444  

Development costs

     1,469       —        3,541       —   

Property charges and other

     2,103       (1,442 )      6,317       14,445  

Loss (gain) on extinguishment of debt

     114       (80 )      983       (80 ) 

Income tax impact on adjustments

     —        584       (37 )      —   

Noncontrolling interests impact on adjustments

     (263 )      (4,028 )      (1,146 )      (14,136 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited

   $ 36,443     $ (11,085 )    $ 84,410     $ (80,359 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share:

        

Basic

   $ 0.028     $ (0.008 )    $ 0.064     $ (0.061 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ 0.028     $ (0.008 )    $ 0.064     $ (0.061 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per ADS:

        

Basic

   $ 0.084     $ (0.025 )    $ 0.193     $ (0.183 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ 0.084     $ (0.025 )    $ 0.193     $ (0.183 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding used in adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share calculation:

        

Basic

     1,294,946,572       1,311,270,775       1,308,860,794       1,315,728,852  
 

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

     1,295,758,173       1,311,270,775       1,312,221,773       1,315,728,852  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

8

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

                                                                                                                       
     Three Months Ended September 30, 2024  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		      City of
Dreams
Manila		      City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (2,152 )    $ 5,919     $ 108,290      $ 36,127      $ 22,302      $ 2,111     $ (34,012 )    $ 138,585  

Payments to the Philippine Parties

      —        —        —         —         10,508        —        —        10,508  

Integrated resort and casino rent (3)

      —        —        —         —         1,398        —        1,199       2,597  

Pre-opening costs (4)

      —        —        3,311        24        —         (2 )      1,231       4,564  

Development costs

      —        —        —         —         —         —        1,469       1,469  

Depreciation and amortization

      618       962       48,967        56,015        11,469        12,679       5,144       135,854  

Share-based compensation

      107       43       1,241        342        252        103       4,819       6,907  

Property charges and other

      342       —        1,019        325        3        224       190       2,103  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (1,085 )      6,924       162,828        92,833        45,932        15,115       (19,960 )      302,587  

Corporate and Other expenses

      —        —        —         —         —         —        19,960       19,960  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (1,085 )    $ 6,924     $ 162,828      $ 92,833      $ 45,932      $ 15,115     $ —      $ 322,547  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  
     Three Months Ended September 30, 2023  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		      City of
Dreams
Manila		      City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (9,784 )    $ 5,981     $ 95,238      $ 10,074      $ 25,681      $ (7,794 )    $ (24,694 )    $ 94,702  

Payments to the Philippine Parties

      —        —        —         —         9,979        —        —        9,979  

Integrated resort and casino rent (3)

      —        —        —         —         474        —        —        474  

Pre-opening costs

      —        —        —         7,564        —         2,620       —        10,184  

Depreciation and amortization

      5,838       884       54,865        49,647        12,297        12,249       4,888       140,668  

Share-based compensation

      119       (33 )      1,091        390        303        125       5,560       7,555  

Property charges and other

      —        46       2,752        57        3        (28 )      (4,272 )      (1,442 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (3,827 )      6,878       153,946        67,732        48,737        7,172       (18,518 )      262,120  

Corporate and Other expenses

      —        —        —         —         —         —        18,518       18,518  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (3,827 )    $ 6,878     $ 153,946      $ 67,732      $ 48,737      $ 7,172     $ —      $ 280,638  
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(3) 

Integrated resort and casino rent represents land rent and variable lease costs to Belle Corporation and casino rent to John Keells Group.

(4)

Certain amount of pre-opening costs were grouped and reported under the line item Integrated resort and casino rent.

 

9

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

                                                                                                                       
     Nine Months Ended September 30, 2024  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		     City of
Dreams
Manila		     City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (5,710 )    $ 18,307     $ 317,461      $ 92,864     $ 55,003     $ 329     $ (90,583 )    $ 387,671  

Payments to the Philippine Parties

      —        —        —         —        29,532       —        —        29,532  

Integrated resort and casino rent (3)

      —        —        —         —        4,191       —        1,199       5,390  

Pre-opening costs (4)

      69       —        6,984        830       —        313       1,540       9,736  

Development costs

      —        —        —         —        —        —        3,541       3,541  

Depreciation and amortization

      1,750       2,813       150,141        164,774       34,450       37,611       15,627       407,166  

Share-based compensation

      334       123       3,780        1,053       835       314       14,428       20,867  

Property charges and other

      1,886       (5 )      3,197        473       254       193       319       6,317  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (1,671 )      21,238       481,563        259,994       124,265       38,760       (53,929 )      870,220  

Corporate and Other expenses

      —        —        —         —        —        —        53,929       53,929  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (1,671 )    $ 21,238     $ 481,563      $ 259,994     $ 124,265     $ 38,760     $ —      $ 924,149  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     Nine Months Ended September 30, 2023  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		     City of
Dreams
Manila		     City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (20,014 )    $ 18,097     $ 210,446      $ (20,286 )    $ 84,131     $ (17,222 )    $ (95,810 )    $ 159,342  

Payments to the Philippine Parties

      —        —        —         —        32,638       —        —        32,638  

Integrated resort and casino rent (3)

      —        —        —         —        1,436       —        —        1,436  

Pre-opening costs

      —        —        —         17,348       —        23,096       —        40,444  

Depreciation and amortization

      17,755       3,044       176,751        130,768       37,922       16,545       15,871       398,656  

Share-based compensation

      180       50       5,248        1,081       881       356       19,432       27,228  

Property charges and other

      511       76       17,670        544       (397 )      (11 )      (3,948 )      14,445  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (1,568 )      21,267       410,115        129,455       156,611       22,764       (64,455 )      674,189  

Corporate and Other expenses

      —        —        —         —        —        —        64,455       64,455  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (1,568 )    $ 21,267     $ 410,115      $ 129,455     $ 156,611     $ 22,764     $ —      $ 738,644  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

10

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

                                                                   
     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2024     2023     2024     2023  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

    $ 27,257     $ (16,303 )    $ 63,817     $ (121,032 ) 

Net loss attributable to noncontrolling interests

      (14,567 )      (20,492 )      (51,864 )      (67,568 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      12,690       (36,795 )      11,953       (188,600 ) 

Income tax expense (benefit)

      4,862       2,021       16,647       (1,295 ) 

Interest and other non-operating expenses, net

      121,033       129,476       359,071       349,237  

Depreciation and amortization

      135,854       140,668       407,166       398,656  

Property charges and other

      2,103       (1,442 )      6,317       14,445  

Share-based compensation

      6,907       7,555       20,867       27,228  

Development costs

      1,469       —        3,541       —   

Pre-opening costs (4)

      4,564       10,184       9,736       40,444  

Integrated resort and casino rent (3)

      2,597       474       5,390       1,436  

Payments to the Philippine Parties

      10,508       9,979       29,532       32,638  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      302,587       262,120       870,220       674,189  

Corporate and Other expenses

      19,960       18,518       53,929       64,455  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ 322,547     $ 280,638     $ 924,149     $ 738,644  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

11

Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2024     2023     2024     2023  

Room Statistics:

         

Altira Macau

         

Average daily rate (5)

    $ 134     $ 138     $ 132     $ 136  

Occupancy per available room

      95 %      95 %      95 %      85 % 

Revenue per available room (6)

    $ 128     $ 131     $ 126     $ 116  

City of Dreams

         

Average daily rate (5)

    $ 211     $ 193     $ 209     $ 202  

Occupancy per available room

      91 %      91 %      92 %      83 % 

Revenue per available room (6)

    $ 192     $ 176     $ 193     $ 168  

Studio City

         

Average daily rate (5)

    $ 171     $ 167     $ 162     $ 148  

Occupancy per available room

      96 %      92 %      96 %      88 % 

Revenue per available room (6)

    $ 164     $ 155     $ 155     $ 129  

City of Dreams Manila

         

Average daily rate (5)

    $ 164     $ 173     $ 164     $ 180  

Occupancy per available room

      97 %      97 %      97 %      96 % 

Revenue per available room (6)

    $ 158     $ 168     $ 158     $ 173  

City of Dreams Mediterranean and Other

         

Average daily rate (5)

    $ 526     $ 375     $ 438     $ 371  

Occupancy per available room

      71 %      63 %      62 %      62 % 

Revenue per available room (6)

    $ 371     $ 236     $ 273     $ 231  

Other Information:

         

Altira Macau

         

Average number of table games

      37       43       40       44  

Average number of gaming machines

      132       125       136       143  

Table games win per unit per day (7)

    $ 8,658     $ 6,686     $ 8,433     $ 6,218  

Gaming machines win per unit per day (8)

    $ 223     $ 291     $ 247     $ 223  

Mocha and Other

         

Average number of table games

      15       18       16       17  

Average number of gaming machines

      873       892       894       880  

Table games win per unit per day (7)

    $ 6,888     $ 5,306     $ 6,741     $ 5,000  

Gaming machines win per unit per day (8)

    $ 276     $ 282     $ 274     $ 292  

City of Dreams

         

Average number of table games

      430       430       430       430  

Average number of gaming machines

      600       629       616       635  

Table games win per unit per day (7)

    $  14,738     $  13,437     $  15,237     $  12,496  

Gaming machines win per unit per day (8)

    $ 545     $ 505     $ 509     $ 441  

Studio City

         

Average number of table games

      253       246       250       246  

Average number of gaming machines

      726       661       679       667  

Table games win per unit per day (7)

    $ 13,212     $ 10,380     $ 13,270     $ 8,331  

Gaming machines win per unit per day (8)

    $ 418     $ 352     $ 443     $ 319  

City of Dreams Manila

         

Average number of table games

      264       266       267       267  

Average number of gaming machines

      2,276       2,295       2,278       2,297  

Table games win per unit per day (7)

    $ 3,308     $ 3,585     $ 3,059     $ 3,513  

Gaming machines win per unit per day (8)

    $ 272     $ 238     $ 259     $ 241  

City of Dreams Mediterranean and Other

         

Average number of table games

      104       103       103       60  

Average number of gaming machines

      897       896       892       616  

Table games win per unit per day (7)

    $ 2,994     $ 2,080     $ 2,959     $ 2,409  

Gaming machines win per unit per day (8)

    $ 352     $ 294     $ 334     $ 376  

 

(5) 

Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms

(6) 

Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

(7) 

Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

(8) 

Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

 

12