Melco Resorts & Entertainment (MLCO) investor relations material

Executive summary

• Q1 2026 operating revenues reached $1.37 billion, up 11% year-over-year, with net income rising over 150% to $76.8 million and adjusted property EBITDA up 12% to $381 million, driven by mass market growth and strong segment performance in Macau and Manila.

• Launched REM, a new luxury hotel at City of Dreams Macau, with phased opening in early Q3 2026; retail and F&B enhancements underway.

• Maintained global presence with integrated resorts in Macau, the Philippines, Cyprus, and Sri Lanka, and received industry-leading awards for product excellence.

• Acquired key trademarks and intellectual property rights from Melco International for $375 million, granting full IP control and eliminating future royalty uncertainties.

• Announced new $500 million share repurchase program, increasing total authorization to $710 million; repurchased 2.5 million ADSs for $13.8 million YTD.

Financial highlights

• Group-wide adjusted property EBITDA for Q1 2026 reached $381 million, up 12% year-over-year; hold-adjusted EBITDA was $356 million.

• Total operating income rose to $179 million, with gaming revenue up 12.3% to $1.15 billion and non-gaming revenue up 4.1% to $216 million.

• Macau property EBITDA margin improved to approximately 28%; group adjusted property EBITDA margin was 27.9%.

• Available liquidity stood at $2.36 billion, with $1.07 billion in cash and bank balances at Q1 end.

• Repaid $60 million in debt at Melco Resorts and $10 million at Studio City; total net debt at quarter-end was $6.67 billion.

Outlook and guidance

• REM hotel opening in Q3 2026 and retail upgrades at City of Dreams Macau expected to drive revenue uplift and enhance product mix.

• May Golden Week bookings show improved occupancy and player quality year-over-year, benefiting from increased domestic travel.

• Total CapEx for 2026 reduced to $425 million, with $350 million remaining for the year; Q2 2026 guidance: depreciation and amortization of $140–$145 million, corporate expense of ~$30 million, and net interest expense of $115–$120 million.

• Management remains focused on increasing profitability and operational flexibility, especially in Cyprus due to tourism impacts from Middle East conflicts.