Melco Resorts & Entertainment Ltd. Q1 FY2025 earnings call

Macau

• Strong momentum with mass drop growth, market share increase, and House of Dancing Water premiere success.
• Studio City EBITDA grew 20% quarter-to-quarter due to completed renovations.### Philippines
• Adjusting cost structure and marketing programs to enhance EBITDA contribution due to heightened competition.### Cyprus
• Property EBITDA grew 10% YOY in 1Q 2025 despite regional noise.### Financials
• Group wide adjusted property EBITDA ~$341M, adjusted for VIP hold ~$313M. OpEx reduced to $3.1M per day in Q1, targeting $3.0M per day in Q2. Liquidity robust with $3.3B available. Guidance on non-operating items for Q2 includes depreciation/amortization ~$135M-$140M, corporate expense ~$25M-$30M, net interest expense ~$100M-$125M.

In Macau, mass drop grew each month during Q1 2025, reaching record highs at City of Dreams and Studio City. Market share increased from 14.7% in 4Q 2024 to 15.7% in 1Q 2025 and remained stable in April. Property visitation grew 30% year-on-year during May Golden Week, with City of Dreams mass drop up over 20%. Studio City property EBITDA increased 20% quarter-to-quarter. In the Philippines, heightened competition impacted 1Q 2025 performances, with adjustments to cost structure and marketing programs. City of Dreams Mediterranean and Cyprus achieved 10% year-over-year growth in property EBITDA for 1Q 2025, despite regional noise, with forward bookings for summer higher than last year.

Q2 2025 Non-Operating Items

• Depreciation and amortization expected to be ~$135M-$140M.
• Corporate expense expected to be ~$25M-$30M.
• Consolidated net interest expense expected to be ~$100M-$125M.### Full Year
• Full year CapEx guidance unchanged at $415M. Sri Lanka opening impact to P&L starting in August.

• Philippines: Heightened competition impacting performance.
• Market conditions: Potential impact from macro factors on gaming floor spend.

Q: Ever since Londoner Grand fully opened in late April, do you guys feel any impact at City of Dreams?

A: No, market share maintained in April and Golden Week mass drop at City of Dreams was up 20%, no material impact seen.

Q: Please provide update on the strategic review on City of Dreams Manila?

A: Continuing process with advisors, potential buyers signing NDAs and working through questions, will narrow down to short list for bidding process.

Q: Any sign of weakness from the gaming floor?

A: No significant weakness seen, strong results continuing with solid drop numbers across the system.

Q: Guidance on CapEx for balance of the year and Sri Lanka impact?

A: Full year CapEx guidance unchanged at $415M, Sri Lanka P&L impact starting in August.

Q: OpEx and EBITDA growth?

A: Intention to sequentially grow hold adjusted EBITDA in Q2, OpEx excluding House of Dancing Water and residencies targeted at $3.0M per day.