Melco Resorts & Entertainment (MLCO) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 operating revenues of $1.23B–$1,232M, up 10.8–11% year-over-year, with net income of $28M–$32.5M, a significant increase from prior year.

• Adjusted Property EBITDA rose to $341M (+14.1% YoY), with margin improvement to 27.7% and record mass drop in Macau.

• Studio City and City of Dreams posted record highs in mass drop; Studio City EBITDA grew 20% quarter-to-quarter after renovations.

• City of Dreams Mediterranean and Cyprus saw 10% year-over-year property EBITDA growth, with strong forward bookings for summer.

• No material impact from new competition in Macau; market share held steady at 15.7% in April.

Financial highlights

• Gaming revenue grew 12.2% YoY to $1,024M; non-gaming revenue increased 4.4% to $208M.

• Group-wide adjusted property EBITDA for Q1 2025 was $341M; $313M adjusted for VIP holds.

• Daily OpEx reduced to $3.1M in Q1 2025 from $3.2M in Q4 2024, targeting $3.0M by Q2 2025 (excluding certain event costs).

• Available liquidity at quarter-end was $3.27B–$3.3B, with $1.23B–$1.2B in consolidated cash.

• $165M in share repurchases completed in 2025 as of May 7.

Outlook and guidance

• OpEx expected to reach $3.0M per day by end of Q2 2025, excluding certain event costs.

• Depreciation and amortization for Q2 2025 guided at $135–$140M; corporate expense at $25–$30M; net interest expense at $100–$125M.

• Full-year 2025 CapEx guidance unchanged at $415M; major project highlighted is Sri Lanka completion.

• City of Dreams Sri Lanka casino operations expected to start in Q3 2025; pre-opening expenses to impact P&L starting August 2025.