MLCO — Melco Resorts & Entertainment Limited

Summary of Melco Resorts & Entertainment Limited (MLCO) Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Group Property EBITDA: $1.4 billion for 2025, up 17% year-over-year.
• Macau Property EBITDA: Grew 24% year-over-year in Q4 and 25% for the full year.
• Adjusted Property EBITDA: Approximately $331 million for 2025, a 12% increase year-over-year. Adjusted for VIP hold, it was approximately $323 million.
• Liquidity Position: $2.4 billion available liquidity, with $1.2 billion in consolidated cash.
• Debt Management: Paid down approximately $400 million in debt in 2025, with further repayments planned for 2026.

2. Strategic Updates and Business Highlights:

• Customer Experience Enhancements: Focused on improving customer experience in Macau, contributing to EBITDA growth.
• New Initiatives: Plans for 2026 include the opening of the renovated Countdown Hotel and upgrades to retail and F&B offerings.
• Philippines Market: Positive developments include visa-free travel for Chinese nationals and airport upgrades, despite ongoing competitive pressures.
• Cyprus Performance: City of Dreams Mediterranean and satellite casinos achieved a 78% year-over-year growth in property EBITDA to $21 million.
• Sri Lanka Operations: Gradual ramp-up of operations with promising early signs in 2026.

3. Forward Guidance and Outlook:

• Macau Market: Anticipates continued growth with GGR up 24% year-over-year at the start of 2026 and strong Chinese New Year performance expected.
• Operating Expenses: Projected daily OpEx in Macau (excluding House of Dancing Water) to increase to approximately $3.2 million in 2026 due to heightened marketing activities.
• Depreciation and Amortization: Expected to be between $140 million to $145 million for 2026.
• Corporate Expenses: Anticipated at approximately $35 million.

4. Bad News, Challenges, or Points of Concern:

• Philippines Market Challenges: Competitive pressures and industry headwinds continue to impact performance, although management remains optimistic about future recovery.
• Bad Debt Provisions: Additional provisions taken due to a settlement with a previous junket operator affected EBITDA.
• Competitive Intensity in Macau: Management noted ongoing intense competition, with no immediate catalysts for margin improvement, although they remain disciplined in managing costs.

5. Notable Q&A Insights:

• Impact of House of Dancing Water: Management reported increased property visitation and non-gaming spending since the show's reopening, though direct correlations to gaming revenue remain difficult to quantify.
• Operating Expenses Breakdown: Nonrecurring expenses from events like the National Games and anniversary celebrations were clarified, with specific dollar amounts provided.
• CapEx Expectations: Total CapEx for 2025 was $450 million, with significant investments planned for the Countdown Hotel and property upgrades across jurisdictions.

Overall, Melco Resorts demonstrated robust financial growth in 2025, with strategic initiatives aimed at enhancing customer experience and expanding offerings, despite facing competitive pressures and challenges in certain markets. The outlook for 2026 remains positive, with expectations for continued growth in Macau and ongoing improvements in operational efficiency.