Summary of Melco Resorts & Entertainment Limited (MLCO) Q1 2026 Earnings Call

1Key Financial Results and Metrics

Group Property EBITDA: Increased by 12% year-over-year to approximately $381 million.

Macau Property EBITDA: Also grew by 12% year-over-year.

Gross Gaming Revenue (GGR): Increased by about 10% year-over-year in Macau, with a 9% increase in the Philippines.

Adjusted Property EBITDA: Approximately $356 million when adjusted for VIP hold.

Daily Operating Expenses (OpEx): Approximately $3.2 million per day in Macau, consistent with prior guidance.

Liquidity Position: Available liquidity of approximately $2.4 billion, with consolidated cash of about $1.1 billion.

Debt Repayment: $60 million repaid at Melco Resorts and $10 million at Studio City during the quarter.

Share Repurchase: $2.5 million of ADSs repurchased for approximately $14 million year-to-date; a new $500 million share repurchase program was announced.

2Strategic Updates and Business Highlights

New Luxury Hotel Launch: REM at City of Dreams (COD) is set to open in early Q3 2026, aimed at enhancing the luxury offering in Macau.

Retail Refresh: A renovation of retail areas at COD is underway, expected to elevate guest experience and product quality.

Philippines Performance: Despite competitive pressures, property EBITDA grew by 24% year-over-year.

Cyprus Operations: Improved occupancy and visitation levels noted in April following regional conflict.

Trademark Acquisition: Purchase of key trademarks from Melco International for $375 million, enhancing control over intellectual property and expected to increase EBITDA and cash flow.

3Forward Guidance and Outlook

CapEx for 2026: Adjusted down from $450 million to approximately $425 million, with about $350 million remaining for the year.

Dividend Resumption: Management aims to resume dividends by the end of 2026, contingent on market conditions and share price.

Operational Outlook: Anticipated increase in OpEx with the opening of REM, estimated at an additional $30,000 to $40,000 per day.

4Bad News, Challenges, or Points of Concern

Competitive Pressures: Increased player reinvestment levels noted due to a competitive market, with management emphasizing a disciplined approach to reinvestment.

VIP Volume Concerns: April showed weaker VIP performance, though management does not see immediate cause for concern regarding future business health.

Middle East Conflict Impact: Ongoing geopolitical tensions have affected operations in Cyprus, although recovery signs were noted in April.

5Notable Q&A Insights

OpEx Stability: Management indicated that while player reinvestment levels have increased, they remain stable without immediate plans for further increases.

May Holiday Outlook: Positive expectations for the May Golden Week, with improved occupancy and player quality anticipated due to regional travel dynamics.

Government Fund Participation: Management confirmed that existing commitments from the license renewal will not increase, despite discussions about a new government fund for economic diversification.

Retail Renovation Impact: The phased approach to retail renovations is designed to minimize disruption, with management confident in maintaining tenant relationships during the transition. Overall, Melco Resorts reported a strong quarter with solid growth metrics, strategic initiatives aimed at enhancing luxury offerings, and a robust liquidity position, while navigating competitive pressures and geopolitical challenges.