Summary of MLCO Q3 2025 Earnings Call

1Key Financial Results and Metrics

Property EBITDA: Grew 21% year-over-year in Macau, with group-wide adjusted property EBITDA increasing 18% to approximately $380 million.

Adjusted EBITDA: Approximately $355 million when adjusted for VIP hold.

Macau GGR: Increased over 30% year-over-year post-Golden Week; COD recorded its highest monthly mass tables GGR in October.

Liquidity Position: Robust with $2.6 billion available liquidity and $1.6 billion in cash as of the end of Q3 2025.

Debt Management: Continued reduction with $180 million repaid in Q3; plans to redeem outstanding senior notes due 2026.

2Strategic Updates and Business Highlights

New Initiatives: Opened the Signature Clubhouse at City of Dreams for premium customers and expanded gaming areas to attract a broader customer base.

Property Developments: Renovation of the Countdown Hotel is underway, expected to open in Q3 2026, alongside upgrades to retail and food offerings.

Philippines Performance: Property EBITDA grew 45% quarter-over-quarter, with City of Dreams Mediterranean achieving its best quarter yet.

Sri Lanka Launch: City of Dreams Sri Lanka opened on August 1, 2025, marking Melco's entry into South Asia.

3Forward Guidance and Outlook

CapEx Guidance: Estimated at $400 million for 2026.

Q4 Expectations: Anticipated total depreciation and amortization expense of $135-$140 million, corporate expenses of $25-$30 million, and net interest expense of $115-$120 million.

Dividend Plans: Potential to recommence quarterly dividends by the end of next year, balancing debt reduction with cash allocation.

4Bad News, Challenges, or Points of Concern

Typhoon Impact: Approximately $12 million negative impact on Q3 results due to a typhoon in September.

Competitive Pressures: Ongoing competitive dynamics in Macau, particularly regarding reinvestment costs and market share strategies, which may limit margin expansion.

Market Conditions: Concerns about the sustainability of premium-driven business and the lack of grind mass players in the market.

5Notable Q&A Insights

Margin and Reinvestment: Management acknowledged that while margins have not expanded as expected post-VIP business decline, they are committed to maintaining reinvestment discipline.

Strategic Review of Manila Asset: Expected to conclude by year-end, focusing on valuation-driven decisions rather than exiting the market.

Operational Environment: Competitive but stable, with no significant uptick in promotional spending noted in Q3.

Sri Lanka Market: Early days with a focus on learning and adapting to the new market dynamics, targeting high-end guests over time. This summary encapsulates the key takeaways from the earnings call, highlighting both positive developments and challenges faced by Melco Resorts & Entertainment in Q3 2025.