Melco Resorts & Entertainment (MLCO) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating revenues rose to $1.19B, up 8.9% year-over-year, with full-year revenues at $4.64B, a 22.9% increase.

• Adjusted Property EBITDA for Q4 2024 was $295M, slightly down year-over-year; full-year Adjusted Property EBITDA increased 17% to $1.22B.

• Net loss narrowed to $20.3M in Q4 2024 from $205.9M in Q4 2023; full-year net loss improved to $28M from $415M in 2023.

• Market share and property visitation in Macau exceeded pre-pandemic levels by year-end, with continued global expansion and new projects underway.

• Maintained strong liquidity with $3.35B available as of year-end 2024.

Financial highlights

• Group-wide Adjusted Property EBITDA for Q4 2024 was $295M; adjusted for VIP hold, EBITDA would have been $312M, up 5% sequentially from Q3 2024.

• Gaming revenue for Q4 2024 was $972M, up 8.3% year-over-year; non-gaming revenue grew 11.8% to $219M.

• Operating income reached $97M in Q4 2024, reversing a $94M loss in Q4 2023; full-year operating income was $485M.

• Macau OpEx in Q4 2024 increased to $3.2M per day due to new activations and staffing, but EBITDA margin remained steady.

• Corporate expense in Q4 2024 was $25M, up due to trademark license fees.

Outlook and guidance

• Run-rate OpEx per day in Macau expected to decline to $3.1M in Q1 2025 and $3.0M by end of Q2 2025.

• Depreciation and amortization for Q1 2025 expected at $135–$140M; corporate expense at $25–$30M; net interest expense at $100–$125M.

• CapEx for 2025 projected at $415M: $80M for Sri Lanka, $290M for Macau (including $70M for Studio City), and the remainder for Manila and Cyprus.

• Casino development in Sri Lanka progressing, with operations expected to commence in Q3 2025.

• Upcoming projects include property renovations, new dining, and the opening of City of Dreams Sri Lanka casino and hotel.