Melco Resorts & Entertainment (MLCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues rose to $1.18 billion, up 16% year-over-year, with net income swinging positive and Adjusted Property EBITDA reaching $323 million, reflecting strong operational recovery and efficiency improvements across core markets.

• Revamped loyalty program, new premium mass tier, and premium slot areas launched, driving increased player reinvestment and visitation.

• Global expansion continued with new attractions and accessibility enhancements in Macau, ongoing development in Sri Lanka, and operations in the Philippines and Cyprus.

• Maintained strong liquidity and reduced leverage, supporting ongoing investments and shareholder returns.

• City of Dreams Sri Lanka opened in October, with further property openings planned for 2025.

Financial highlights

• Group-wide Adjusted Property EBITDA for Q3 2024 reached $323 million, up 7% sequentially and 14.9% year-over-year.

• Total operating revenues were $1.18 billion, up 16% year-over-year; gaming revenue increased 16.3% to $944 million, non-gaming revenue up 12.5% to $231 million.

• Net income was $27.3 million, reversing a net loss in Q3 2023.

• Consolidated cash on hand as of September 30, 2024, was $1.25 billion, with over $3 billion in available liquidity.

• Total debt declined by $60 million in Q3 following Studio City bond repurchases.

Outlook and guidance

• Dividend resumption is targeted for the second half of 2025, subject to business conditions.

• Q4 2024 guidance: depreciation and amortization expense of $135–$140 million, corporate expense of $20 million, and net interest expense of $120–$125 million.

• CapEx for Q4 2024 expected at $115 million; 2025 CapEx targeted at $400 million, with $70–$75 million allocated to Sri Lanka.

• Daily OpEx in Macau expected to rise to $3.0 million by year-end, with an additional $0.1 million per day upon House of Dancing Water reopening in Q2 2025.

• Management expects to continue unveiling new projects to support Macau's ongoing growth.