Melco Resorts & Entertainment Ltd. Q3 FY2024 earnings call

• Relaunched loyalty program in September 2024, including a new tier for premium mass players.
• Opened a signature premium slot area at City of Dreams and Dragon Zone at Studio City.
• Enhanced accessibility at City of Dreams with a new light tunnel and interactive LED screens at Studio City.
• Progressed with RFID table installations, converting all Baccarat tables at Studio City to RFID, with City of Dreams to complete installations by Q1 2025.
• Planned 2025 projects include enhancing City of Dreams accessibility, revamping Studio City's high limited gaming area, and relaunching House of Dancing Water in Q2 2025.
• Manila's City of Dreams improved performance; Cypress and Sri Lanka had solid GGR/EBITDA growth despite challenges.
• City of Dreams Sri Lanka opened in October 2024, with casino and Nuwa hotel set to open in H2 2025.

In Macau, initiatives like the relaunched loyalty program, new slot areas, and accessibility enhancements are underway. City of Dreams Macau and Studio City saw favorable win rates. Manila's City of Dreams showed quarter-to-quarter improvement despite competition. Cypress and Sri Lanka faced challenges but had solid GGR and EBITDA growth. City of Dreams Sri Lanka opened in October 2024, with the casino and Nuwa hotel set to open in the second half of 2025.

• Fourth quarter 2024 nonoperating items: Depreciation/amortization expected $135M-$140M, corporate expense ~$20M, consolidated net interest expense ~$120M-$125M.
• 2024 Q4 CapEx ~$115M; 2025 CapEx targeted ~$400M, with ~$70M-$75M earmarked for Sri Lanka.
• Aim to resume dividends in the second half of 2025, subject to business conditions and deleveraging progress.

• Intense and stabilizing promotional environment.
• Regional conflicts in Cypress and Sri Lanka impacting operations.
• Dependence on market conditions for promotional spending and revenue stability.

Q: George Choi asked about Golden Week performance and dividend timeline.

A: Lawrence Ho stated mass drop was up over 20% Y/Y during Golden Week, and dividend likely to resume in the second half of 2025 after prioritizing debt reduction.

Q: John DeCree inquired about the promotional environment.

A: Lawrence Ho said promotional intensity past peak and stabilizing; Evan Winkler noted reallocation of promotional spend on retaining top players.

Q: John DeCree asked about share repurchases vs dividends.

A: Lawrence Ho and Geoffrey Davis mentioned share buybacks were opportunistic, with priority on deleveraging first.

Q: Luis Ricardo Chinchilla asked about luxury spend and CapEx.

A: Lawrence Ho said Chinese consumers shifting to experiences over luxury goods; Geoffrey Davis detailed 2024 Q4 CapEx ~$115M and 2025 CapEx ~$400M with ~$70M-$75M for Sri Lanka.

Q: Praveen Choudhary asked about dividend trigger and EBITDA potential.

A: Geoffrey Davis said no specific net debt to EBITDA trigger; Lawrence Ho aimed to return to 2019 EBITDA levels and target third market share in Macau by 2025.

Q: Simon Cheung asked about promotional program and OpEx.

A: Evan Winkler said reallocation of promotional spend on retaining top players; Geoffrey Davis noted OpEx per day could creep up to $3.0 by end of 2024, with House of Dancing Water opening adding $0.1 per day to OpEx.