Melco Resorts & Entertainment (MLCO) investor relations material

Executive summary

• Q3 2026 revenue was $1.174bn, down 10.4% YoY; Adjusted EBITDA was $264.7m, down 24.8%, and Adjusted Property EBITDA was $287.6m versus $380.4m.

• Net loss was $9.1m, including $9.1m attributable to noncontrolling interests; net income attributable to shareholders was $34K.

• Adjusted Property EBITDA was $298m on an estimated hold-adjusted basis using a normalized 3.00% VIP win rate.

• Management cited confidence in Macau’s long-term prospects and October performance outperforming the broader market after sales-force and resource-allocation changes.

Financial highlights

• Gaming revenue was $939m, down 11.5% YoY; non-gaming revenue was $234m, down 5.5%. Total operating costs and expenses were $1.073bn, down 4.6%.

• Operating income fell to $100.2m from $184.5m; net non-operating expenses were $107.7m, including $110.8m of net interest expense partly offset by $3.7m of FX gains.

• Unfavorable VIP win rates at City of Dreams Macau reduced property EBITDA by $14m; favorable rates added $2m each at City of Dreams Manila and Sri Lanka.

• Macau daily OPEX was $3.2m in Q3, including The House of Dancing Water, below prior guidance.

Outlook and guidance

• Q4 2026 guidance: depreciation and amortization of $140m–$145m, corporate expense of $20m–$25m, and consolidated net interest expense of $115m–$120m.

• Q4 net interest guidance includes $6m of concession and license fee interest and $5m of financed-lease interest for City of Dreams Manila.

• CapEx guidance was reduced to $95m for Q4 2026, $375m for FY2026 and $275m for FY2027.

• Deleveraging remains the priority; dividend resumption is a potential end-2027 target, with timing uncertain.