Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a–16 OR 15d–16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number: 001-33178

 

 

MELCO RESORTS & ENTERTAINMENT LIMITED

 

 

71 Robinson Road

#04-03

Singapore (068895)

and

38th Floor, The Centrium

60 Wyndham Street

Central

Hong Kong

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20–F or Form 40–F. Form 20-F ☒ Form 40-F ☐

 

 

 

Table of Contents

MELCO RESORTS & ENTERTAINMENT LIMITED

Form 6–K

TABLE OF CONTENTS

 

Signature    3
Exhibit 99.1   

 

2

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MELCO RESORTS & ENTERTAINMENT
LIMITED
By:  

/s/ Geoffrey Davis

Name:  

Geoffrey Davis, CFA

Title:  

Chief Financial Officer

Date: August 14, 2024

 

3

Table of Contents

EXHIBIT INDEX

 

Exhibit No.

   

Description

Exhibit 99.1   

Unaudited Results for Second Quarter of 2024

 

4

Exhibit 99.1

 

LOGO

Melco Announces Unaudited Second Quarter 2024 Earnings

MACAU, Aug. 13, 2024 (GLOBE NEWSWIRE) — Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the second quarter of 2024.

Total operating revenues for the second quarter of 2024 were US$1.16 billion, representing an increase of approximately 22% from US$947.9 million for the comparable period in 2023. The increase in total operating revenues was primarily attributable to the improved performance in the mass market segment and non-gaming operations, led by the continued recovery in inbound tourism to Macau during the second quarter of 2024.

Operating income for the second quarter of 2024 was US$123.7 million, compared with operating income of US$64.3 million in the second quarter of 2023.

Melco generated Adjusted Property EBITDA(1) of US$302.8 million in the second quarter of 2024, compared with Adjusted Property EBITDA of US$267.3 million in the second quarter of 2023.

Net income attributable to Melco Resorts & Entertainment Limited for the second quarter of 2024 was US$21.4 million, or US$0.05 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$23.4 million, or US$0.05 per ADS, in the second quarter of 2023. Net loss attributable to noncontrolling interests was US$22.7 million and US$27.7 million during the second quarters of 2024 and 2023, respectively, all of which were related to Studio City, City of Dreams Manila, and City of Dreams Mediterranean and Other.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Our strategic initiatives to expand revenue and profitability, and drive growth continued to evolve in the second quarter of 2024. We are investing in people and incorporating enhancements to our properties to provide the best premium experience available in Macau to our patrons. We’ve seen growth in GGR quarter-to-quarter and year-over-year, and our teams are focused on driving continued expansion of our market position.

“City of Dreams Manila in the Philippines has consistently exhibited solid results. City of Dreams Mediterranean and our satellite casinos in Cyprus built upon the momentum seen in the past quarter, with luck adjusted EBITDA growing more than 30% quarter-to-quarter.”

City of Dreams Second Quarter Results

For the quarter ended June 30, 2024, total operating revenues at City of Dreams were US$576.4 million, compared with US$506.2 million in the second quarter of 2023. City of Dreams generated Adjusted EBITDA of US$165.1 million in the second quarter of 2024, compared with Adjusted EBITDA of US$161.2 million in the second quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market table games segment.

Rolling chip volume was US$4.83 billion for the second quarter of 2024 versus US$5.76 billion in the second quarter of 2023. The rolling chip win rate was 2.99% in the second quarter of 2024 versus 2.88% in the second quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$1.46 billion in the second quarter of 2024, compared with US$1.24 billion in the second quarter of 2023. The mass market table games hold percentage was 32.3% in the second quarter of 2024, compared with 32.0% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$902.3 million, compared with US$771.5 million in the second quarter of 2023. The gaming machine win rate was 3.1% in the second quarter of 2024 versus 2.8% in the second quarter of 2023.

Total non-gaming revenue at City of Dreams in the second quarter of 2024 was US$80.4 million, compared with US$68.9 million in the second quarter of 2023.

 

1

Altira Macau Second Quarter Results

Total operating revenues at Altira Macau were US$29.3 million in both the second quarters of 2024 and 2023. Altira Macau generated negative Adjusted EBITDA of US$2.0 million in the second quarter of 2024, compared with Adjusted EBITDA of US$4.3 million in the second quarter of 2023.

In the mass market table games segment, drop was US$134.4 million in the second quarter of 2024 versus US$116.6 million in the second quarter of 2023. The mass market table games hold percentage was 20.6% in the second quarter of 2024, compared with 24.2% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$132.1 million, compared with US$82.0 million in the second quarter of 2023. The gaming machine win rate was 2.6% in the second quarter of 2024 versus 3.3% in the second quarter of 2023.

Total non-gaming revenue at Altira Macau was US$4.9 million in both the second quarters of 2024 and 2023.

Mocha and Other Second Quarter Results

Total operating revenues from Mocha and Other were US$30.7 million in the second quarter of 2024, compared with US$28.8 million in the second quarter of 2023. Mocha and Other generated Adjusted EBITDA of US$6.8 million in the second quarter of 2024, compared with Adjusted EBITDA of US$6.7 million in the second quarter of 2023.

Mass market table games drop was US$58.0 million in the second quarter of 2024 versus US$41.4 million in the second quarter of 2023. The mass market table games hold percentage was 18.9% in the second quarter of 2024 versus 18.2% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$502.7 million, compared with US$502.8 million in the second quarter of 2023. The gaming machine win rate was 4.2% in the second quarter of 2024 versus 4.5% in the second quarter of 2023.

Studio City Second Quarter Results

For the quarter ended June 30, 2024, total operating revenues at Studio City were US$352.3 million, compared with US$236.0 million in the second quarter of 2023. Studio City generated Adjusted EBITDA of US$79.2 million in the second quarter of 2024, compared with Adjusted EBITDA of US$41.1 million in the second quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.

Studio City’s rolling chip volume was US$813.0 million in the second quarter of 2024 versus US$789.5 million in the second quarter of 2023. The rolling chip win rate was 2.97% in the second quarter of 2024 versus 1.43% in the second quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$955.6 million in the second quarter of 2024, compared with US$716.6 million in the second quarter of 2023. The mass market table games hold percentage was 30.1% in the second quarter of 2024, compared with 25.5% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$842.4 million, compared with US$595.4 million in the second quarter of 2023. The gaming machine win rate was 3.3% in the second quarter of 2024, compared with 3.4% in the second quarter of 2023.

Total non-gaming revenue at Studio City in the second quarter of 2024 was US$80.4 million, compared with US$74.3 million in the second quarter of 2023.

City of Dreams Manila Second Quarter Results

For the quarter ended June 30, 2024, total operating revenues at City of Dreams Manila were US$109.0 million, compared with US$116.4 million in the second quarter of 2023. City of Dreams Manila generated Adjusted EBITDA of US$40.5 million in the second quarter of 2024, compared with Adjusted EBITDA of US$47.0 million in the comparable period of 2023. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in the mass market table games segment.

City of Dreams Manila’s rolling chip volume was US$572.9 million in the second quarter of 2024 versus US$520.2 million in the second quarter of 2023. The rolling chip win rate was 3.19% in the second quarter of 2024 versus 3.10% in the second quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

 

2

Mass market table games drop decreased to US$174.4 million in the second quarter of 2024, compared with US$194.5 million in the second quarter of 2023. The mass market table games hold percentage was 32.4% in the second quarter of 2024, compared with 31.3% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$1.04 billion, compared with US$1.01 billion in the second quarter of 2023. The gaming machine win rate was 4.6% in the second quarter of 2024 versus 4.8% in the second quarter of 2023.

Total non-gaming revenue at City of Dreams Manila in the second quarter of 2024 was US$27.3 million, compared with US$28.7 million in the second quarter of 2023.

City of Dreams Mediterranean and Other Second Quarter Results

The Company operates three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean.

Total operating revenues at City of Dreams Mediterranean and Other for the quarter ended June 30, 2024 were US$58.7 million, compared with US$30.9 million in the second quarter of 2023. City of Dreams Mediterranean and Other generated Adjusted EBITDA of US$13.1 million in the second quarter of 2024, compared with Adjusted EBITDA of US$6.9 million in the second quarter of 2023. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market segment and non-gaming operations following the opening of City of Dreams Mediterranean in mid-2023.

Rolling chip volume was US$6.9 million for the second quarter of 2024 versus US$0.1 million in the second quarter of 2023. The rolling chip win rate was negative 5.59% in the second quarter of 2024, compared with 2.52% in the second quarter of 2023. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop was US$113.8 million in the second quarter of 2024, compared with US$47.0 million in the second quarter of 2023. The mass market table games hold percentage was 24.0% in the second quarter of 2024, compared with 21.9% in the second quarter of 2023.

Gaming machine handle for the second quarter of 2024 was US$522.4 million, compared with US$391.7 million in the second quarter of 2023. The gaming machine win rate was 5.2% in the second quarter of 2024 versus 5.1% in the second quarter of 2023.

Total non-gaming revenue at City of Dreams Mediterranean and Other in the second quarter of 2024 was US$19.2 million, compared with US$1.9 million in the second quarter of 2023.

Other Factors Affecting Earnings

Total net non-operating expenses for the second quarter of 2024 were US$116.9 million, which mainly included interest expense of US$121.3 million, partially offset by interest income of US$4.3 million.

Depreciation and amortization costs of US$134.5 million were recorded in the second quarter of 2024, of which US$5.0 million related to the amortization expense for land use rights.

The Adjusted EBITDA for Studio City for the three months ended June 30, 2024 referred to above was US$25.0 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated August 13, 2024 (the “Studio City Earnings Release”). The Adjusted EBITDA of Studio City contained in the Studio City Earnings Release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain gaming concession related costs and certain intercompany costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of June 30, 2024 aggregated to US$1.28 billion, including US$125.2 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$7.22 billion at the end of the second quarter of 2024, a reduction of approximately US$100 million compared to the total debt balance as of March 31, 2024, primarily as a result of the approximately US$100 million cash tender offer, which was concluded on April 24, 2024, of the 6.000% senior notes due 2025 issued by Studio City Finance Limited and the US$743.7 million repayment of loans drawn under our revolving credit facility with the net proceeds from the issuance of the US$750.0 million in aggregate principal amount of senior notes due 2032 by Melco Resorts Finance Limited, and cash on hand. Available liquidity, including cash and undrawn revolving credit facilities, as of June 30, 2024, was US$3.09 billion.

Capital expenditures for the second quarter of 2024 were US$47.6 million, which included costs related to the enhancement projects at City of Dreams in Macau and Studio City.

 

3

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its second quarter 2024 financial results on Tuesday, August 13, 2024 at 8:30 a.m. Eastern Time (or 8:30 p.m. Singapore Time).

To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers and a unique Personal PIN which can be used to join the conference.

Online Registration Link:

https://register.vevent.com/register/BIf15a5a35f53e45409e3eed6af964ac22

An audio webcast and replay of the conference call will also be available at http://www.melco-resorts.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) the pace of recovery from the impact of COVID-19 on our business, our industry and the global economy, (ii) risks associated with the amended Macau gaming law and its implementation by the Macau government, (iii) changes in the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iv) capital and credit market volatility, (v) local and global economic conditions, (vi) our anticipated growth strategies, (vii) gaming authority and other governmental approvals and regulations, and (viii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

 

  (1)

“Adjusted EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the “Philippine Parties”), integrated resort and casino rent and other non-operating income and expenses. “Adjusted Property EBITDA” is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, integrated resort and casino rent, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Company’s performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Company’s calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The use of Adjusted Property EBITDA and Adjusted EBITDA has material limitations as an analytical tool, as Adjusted Property EBITDA and Adjusted EBITDA does not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. Reconciliations of Adjusted EBITDA and Adjusted Property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

 

4

  (2)

“Adjusted net income/loss” is net income/loss before pre-opening costs, development costs, property charges and other and loss on extinguishment of debt, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share (“EPS”) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income/loss and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company operates City of Dreams Mediterranean in Limassol in the Republic of Cyprus (www.cityofdreamsmed.com.cy). The Company also continues to operate three satellite casinos in other cities in Cyprus (the “Cyprus Casinos”). For more information about the Company, please visit www.melco-resorts.com.

The Company is majority owned by Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited, which is in turn majority owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

For the investment community, please contact:

Jeanny Kim

Senior Vice President, Group Treasurer

Tel: +852 2598 3698

Email: jeannykim@melco-resorts.com

For media enquiries, please contact:

Chimmy Leung

Executive Director, Corporate Communications

Tel: +852 3151 3765

Email: chimmyleung@melco-resorts.com

 

5

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except share and per share data)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2024     2023     2024     2023  

Operating revenues:

         

Casino

    $ 942,968     $ 768,450     $ 1,856,288     $ 1,367,450  

Rooms

      101,386       80,075       202,224       138,663  

Food and beverage

      71,574       46,543       137,679       83,298  

Entertainment, retail and other

      43,727       52,871       75,871       75,008  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues

      1,159,655       947,939       2,272,062       1,664,419  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating costs and expenses:

         

Casino

      (632,474 )      (505,581 )      (1,242,225 )      (904,450 ) 

Rooms

      (30,266 )      (19,871 )      (59,518 )      (34,222 ) 

Food and beverage

      (53,712 )      (35,904 )      (108,449 )      (63,418 ) 

Entertainment, retail and other

      (23,021 )      (36,540 )      (39,647 )      (42,566 ) 

General and administrative

      (144,388 )      (118,325 )      (271,343 )      (228,329 ) 

Payments to the Philippine Parties

      (10,535 )      (9,311 )      (19,024 )      (22,659 ) 

Pre-opening costs

      (2,883 )      (17,148 )      (5,172 )      (30,260 ) 

Development costs

      (1,934 )      —        (2,072 )      —   

Amortization of land use rights

      (4,979 )      (5,660 )      (9,955 )      (11,318 ) 

Depreciation and amortization

      (129,535 )      (130,869 )      (261,357 )      (246,670 ) 

Property charges and other

      (2,192 )      (4,445 )      (4,214 )      (15,887 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating costs and expenses

      (1,035,919 )      (883,654 )      (2,022,976 )      (1,599,779 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      123,736       64,285       249,086       64,640  
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-operating income (expenses):

         

Interest income

      4,293       4,979       8,831       11,773  

Interest expense, net of amounts capitalized

      (121,320 )      (123,511 )      (245,512 )      (232,469 ) 

Other financing costs

      (1,976 )      (990 )      (3,600 )      (1,924 ) 

Foreign exchange gains, net

      2,335       2,360       507       1,541  

Other income, net

      605       658       2,605       1,318  

Loss on extinguishment of debt

      (869 )      —        (869 )      —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total non-operating expenses, net

      (116,932 )      (116,504 )      (238,038 )      (219,761 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax

      6,804       (52,219 )      11,048       (155,121 ) 

Income tax (expense) benefit

      (8,091 )      1,075       (11,785 )      3,316  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

      (1,287 )      (51,144 )      (737 )      (151,805 ) 

Net loss attributable to noncontrolling interests

      22,677       27,703       37,297       47,076  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

    $ 21,390     $ (23,441 )    $ 36,560     $ (104,729 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited per share:

         

Basic

    $ 0.016     $ (0.018 )    $ 0.028     $ (0.079 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.016     $ (0.018 )    $ 0.028     $ (0.079 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Melco Resorts & Entertainment Limited per ADS:

         

Basic

    $ 0.049     $ (0.054 )    $ 0.083     $ (0.238 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.049     $ (0.054 )    $ 0.083     $ (0.238 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding used in net income (loss) attributable to Melco Resorts & Entertainment Limited per share calculation:

         

Basic

      1,320,517,938       1,310,358,237       1,315,894,356       1,317,994,836  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      1,322,235,542       1,310,358,237       1,320,530,024       1,317,994,836  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

6

Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

     June 30,
2024		     December 31,
2023		  
     (Unaudited)        

ASSETS

     

Current assets:

     

Cash and cash equivalents

    $ 1,149,887     $ 1,310,715  

Restricted cash

      379       27  

Accounts receivable, net

      95,907       91,638  

Receivables from affiliated companies

      1,160       797  

Inventories

      31,282       29,427  

Prepaid expenses and other current assets

      107,623       111,688  
  

 

 

    

 

 

  

Total current assets

      1,386,238       1,544,292  
  

 

 

    

 

 

  

Property and equipment, net

      5,348,702       5,533,994  

Intangible assets, net

      287,962       304,652  

Goodwill

      81,617       81,582  

Long-term prepayments, deposits and other assets, net

      157,738       100,320  

Restricted cash

      124,785       125,094  

Operating lease right-of-use assets

      54,287       62,356  

Land use rights, net

      573,058       582,782  
  

 

 

    

 

 

  

Total assets

    $ 8,014,387     $ 8,335,072  
  

 

 

    

 

 

  

LIABILITIES AND DEFICIT

     

Current liabilities:

     

Accounts payable

    $ 22,538     $ 11,752  

Accrued expenses and other current liabilities

      968,884       1,008,316  

Income tax payable

      29,948       28,183  

Operating lease liabilities, current

      16,315       19,685  

Finance lease liabilities, current

      33,327       35,307  

Payables to affiliated companies

      517       377  
  

 

 

    

 

 

  

Total current liabilities

      1,071,529       1,103,620  
  

 

 

    

 

 

  

Long-term debt, net

      7,223,046       7,472,620  

Other long-term liabilities

     310,988       322,591  

Deferred tax liabilities, net

      36,040       34,959  

Operating lease liabilities, non-current

      47,822       53,858  

Finance lease liabilities, non-current

      170,425       187,474  
  

 

 

    

 

 

  

Total liabilities

      8,859,850       9,175,122  
  

 

 

    

 

 

  

Deficit:

     

Ordinary shares, par value $0.01; 7,300,000,000 shares authorized; 1,404,679,067 and 1,404,679,067 shares issued; 1,321,266,334 and 1,311,270,775 shares outstanding, respectively

      14,047       14,047  

Treasury shares, at cost; 83,412,733 and 93,408,292 shares, respectively

      (225,886 )      (255,068 ) 

Additional paid-in capital

      3,092,966       3,109,212  

Accumulated other comprehensive losses

      (116,722 )      (98,599 ) 

Accumulated losses

      (4,020,312 )      (4,056,872 ) 
  

 

 

    

 

 

  

Total Melco Resorts & Entertainment Limited shareholders’ deficit

      (1,255,907 )      (1,287,280 ) 

Noncontrolling interests

      410,444       447,230  
  

 

 

    

 

 

  

Total deficit

      (845,463 )      (840,050 ) 
  

 

 

    

 

 

  

Total liabilities and deficit

    $ 8,014,387     $ 8,335,072  
  

 

 

    

 

 

  

 

7

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited to

Adjusted Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited (Unaudited)

(In thousands, except share and per share data)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2024     2023     2024     2023  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

    $ 21,390     $ (23,441 )    $ 36,560     $ (104,729 ) 

Pre-opening costs

      2,883       17,148       5,172       30,260  

Development costs

      1,934       —        2,072       —   

Property charges and other

      2,192       4,445       4,214       15,887  

Loss on extinguishment of debt

      869       —        869       —   

Income tax impact on adjustments

      (18 )      (276 )      (37 )      (584 ) 

Noncontrolling interests impact on adjustments

      (844 )      (5,522 )      (883 )      (10,108 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited

    $ 28,406     $ (7,646 )    $ 47,967     $ (69,274 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share:

         

Basic

    $ 0.022     $ (0.006 )    $ 0.036     $ (0.053 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.021     $ (0.006 )    $ 0.036     $ (0.053 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per ADS:

         

Basic

    $ 0.065     $ (0.018 )    $ 0.109     $ (0.158 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ 0.064     $ (0.018 )    $ 0.109     $ (0.158 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares outstanding used in adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share calculation:

         

Basic

      1,320,517,938       1,310,358,237       1,315,894,356       1,317,994,836  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      1,322,235,542       1,310,358,237       1,320,530,024       1,317,994,836  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

8

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

     Three Months Ended June 30, 2024  
     Altira
Macau		     Mocha
and Other		      City of
Dreams		      Studio
City		     City of
Dreams
Manila		      City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (3,174 )    $ 5,876      $ 111,105      $ 23,456     $ 17,209      $ 653     $ (31,389 )    $ 123,736  

Payments to the Philippine Parties

      —        —         —         —        10,535        —        —        10,535  

Integrated resort and casino rent (3)

      —        —         —         —        1,045        —        —        1,045  

Pre-opening costs

      —        —         1,801        747       —         26       309       2,883  

Development costs

      —        —         —         —        —         —        1,934       1,934  

Depreciation and amortization

      557       930        49,750         54,492       11,355        12,218       5,212       134,514  

Share-based compensation

      108       43        1,225        337       283        106       4,955       7,057  

Property charges and other

      497       —         1,251        208       61        105       70       2,192  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (2,012 )      6,849        165,132        79,240       40,488        13,108       (18,909 )      283,896  

Corporate and Other expenses

      —        —         —         —        —         —        18,909       18,909  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (2,012 )    $ 6,849      $ 165,132      $ 79,240     $ 40,488      $ 13,108     $ —      $ 302,805  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  
     Three Months Ended June 30, 2023  
     Altira
Macau		     Mocha
and Other		      City of
Dreams		      Studio
City		     City of
Dreams
Manila		      City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (2,012 )    $ 5,552      $ 95,582      $ (10,905 )    $ 23,731      $ (8,848 )    $ (38,815 )    $ 64,285  

Payments to the Philippine Parties

      —        —         —         —        9,311        —        —        9,311  

Integrated resort and casino rent (3)

      —        —         —         —        476        —        —        476  

Pre-opening costs

      —        —         —         4,721       —         12,427       —        17,148  

Depreciation and amortization

      5,988       1,083        60,514        46,753         13,156           3,112       5,923       136,529  

Share-based compensation

      118       46        1,340        368       285        205       6,499       8,861  

Property charges and other

      203       30        3,806        197       3        14       192       4,445  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

        4,297          6,711        161,242          41,134       46,962        6,910       (26,201 )      241,055  

Corporate and Other expenses

      —        —         —         —        —         —        26,201       26,201  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ 4,297     $ 6,711      $ 161,242      $ 41,134     $ 46,962      $ 6,910     $ —      $ 267,256  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(3) 

Integrated resort and casino rent represents land rent and variable lease costs to Belle Corporation.

 

9

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Operating Income to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

     Six Months Ended June 30, 2024  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		     City of
Dreams
Manila		     City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (3,558 )    $ 12,388     $ 209,171      $ 56,737     $ 32,701     $ (1,782 )    $ (56,571 )    $ 249,086  

Payments to the Philippine Parties

      —        —        —         —        19,024       —        —        19,024  

Integrated resort and casino rent (3)

      —        —        —         —        2,793       —        —        2,793  

Pre-opening costs

      69       —        3,673        806       —        315       309       5,172  

Development costs

      —        —        —         —        —        —        2,072       2,072  

Depreciation and amortization

      1,132       1,851       101,174        108,759       22,981       24,932       10,483       271,312  

Share-based compensation

      227       80       2,539        711       583       211       9,609       13,960  

Property charges and other

      1,544       (5 )      2,178        148       251       (31 )      129       4,214  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      (586 )      14,314       318,735        167,161       78,333       23,645       (33,969 )      567,633  

Corporate and Other expenses

      —        —        —         —        —        —        33,969       33,969  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ (586 )    $ 14,314     $ 318,735      $ 167,161     $ 78,333     $ 23,645     $ —      $ 601,602  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     Six Months Ended June 30, 2023  
     Altira
Macau		     Mocha
and Other		     City of
Dreams		      Studio
City		     City of
Dreams
Manila		     City of Dreams
Mediterranean
and Other		     Corporate
and Other		     Total  

Operating (loss) income

    $ (10,230 )    $ 12,116     $ 115,208      $ (30,360 )    $ 58,450     $ (9,428 )    $ (71,116 )    $ 64,640  

Payments to the Philippine Parties

      —        —        —         —        22,659       —        —        22,659  

Integrated resort and casino rent (3)

      —        —        —         —        962       —        —        962  

Pre-opening costs

      —        —        —         9,784       —        20,476       —        30,260  

Depreciation and amortization

      11,917       2,160       121,886        81,121       25,625       4,296       10,983       257,988  

Share-based compensation

      61       83       4,157        691       578       231       13,872       19,673  

Property charges and other

      511       30       14,918        487       (400 )      17       324       15,887  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      2,259       14,389       256,169        61,723       107,874       15,592       (45,937 )      412,069  

Corporate and Other expenses

      —        —        —         —        —        —        45,937       45,937  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ 2,259     $ 14,389     $ 256,169      $ 61,723     $ 107,874     $ 15,592     $ —      $ 458,006  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

10

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Income (Loss) Attributable to Melco Resorts & Entertainment Limited to

Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)

(In thousands)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2024     2023     2024     2023  

Net income (loss) attributable to Melco Resorts & Entertainment Limited

    $ 21,390     $ (23,441 )    $ 36,560     $ (104,729 ) 

Net loss attributable to noncontrolling interests

      (22,677 )      (27,703 )      (37,297 )      (47,076 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

      (1,287 )      (51,144 )      (737 )      (151,805 ) 

Income tax expense (benefit)

      8,091       (1,075 )      11,785       (3,316 ) 

Interest and other non-operating expenses, net

      116,932        116,504        238,038       219,761  

Depreciation and amortization

       134,514       136,529       271,312       257,988  

Property charges and other

      2,192       4,445       4,214       15,887  

Share-based compensation

      7,057       8,861       13,960       19,673  

Development costs

      1,934       —        2,072       —   

Pre-opening costs

      2,883       17,148       5,172        30,260  

Integrated resort and casino rent (3)

      1,045       476       2,793       962  

Payments to the Philippine Parties

      10,535       9,311       19,024       22,659  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      283,896       241,055       567,633       412,069  

Corporate and Other expenses

      18,909       26,201       33,969       45,937  
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Property EBITDA

    $ 302,805     $ 267,256     $ 601,602     $ 458,006  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

11

Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2024     2023     2024     2023  

Room Statistics:

         

Altira Macau

         

Average daily rate (4)

    $ 129     $ 145     $ 131     $ 135  

Occupancy per available room

      95 %      88 %      95 %      80 % 

Revenue per available room (5)

    $ 123     $ 127     $ 124     $ 107  

City of Dreams

         

Average daily rate (4)

    $ 209     $ 205     $ 207     $ 208  

Occupancy per available room

      93 %      85 %      93 %      79 % 

Revenue per available room (5)

    $ 194     $ 174     $ 194     $ 164  

Studio City

         

Average daily rate (4)

    $ 157     $ 153     $ 158     $ 134  

Occupancy per available room

      96 %      91 %      96 %      85 % 

Revenue per available room (5)

    $ 150     $ 140     $ 151     $ 114  

City of Dreams Manila

         

Average daily rate (4)

    $ 160     $ 181     $ 164     $ 183  

Occupancy per available room

      97 %      97 %      96 %      96 % 

Revenue per available room (5)

    $ 155     $ 175     $ 158     $ 176  

City of Dreams Mediterranean and Other

         

Average daily rate (4)

    $ 443     $ 336     $ 383     $ 336  

Occupancy per available room

      61 %      56 %      58 %      56 % 

Revenue per available room (5)

    $ 272     $ 188     $ 221     $ 188  

Other Information:

         

Altira Macau

         

Average number of table games

      39       44       41       45  

Average number of gaming machines

      139       148       137       153  

Table games win per unit per day (6)

    $ 7,890     $ 7,028     $ 8,330     $ 5,991  

Gaming machines win per unit per day (7)

    $ 276     $ 200     $ 260     $ 195  

Mocha and Other

         

Average number of table games

      16       17       17       16  

Average number of gaming machines

      912       866       905       875  

Table games win per unit per day (6)

    $ 7,629     $ 4,943     $ 6,674     $ 4,823  

Gaming machines win per unit per day (7)

    $ 254     $ 290     $ 273     $ 298  

City of Dreams

         

Average number of table games

      430       430       430       430  

Average number of gaming machines

      603       632       624       637  

Table games win per unit per day (6)

    $ 15,714     $ 14,375     $ 15,490     $ 12,018  

Gaming machines win per unit per day (7)

    $ 510     $ 370     $ 491     $ 408  

Studio City

         

Average number of table games

      252       246       249       246  

Average number of gaming machines

      641       662       656       670  

Table games win per unit per day (6)

    $ 13,563     $ 8,683     $ 13,300     $ 7,289  

Gaming machines win per unit per day (7)

    $ 476     $ 333     $ 456     $ 302  

City of Dreams Manila

         

Average number of table games

      269       266       269       267  

Average number of gaming machines

      2,277       2,299       2,279       2,297  

Table games win per unit per day (6)

    $ 3,049     $ 3,189     $ 2,935     $ 3,476  

Gaming machines win per unit per day (7)

    $ 232     $ 230     $ 253     $ 242  

City of Dreams Mediterranean and Other

         

Average number of table games

      102       41       103       38  

Average number of gaming machines

      891       479       890       463  

Table games win per unit per day (6)

    $ 2,908     $ 2,782     $ 2,941     $ 2,865  

Gaming machines win per unit per day (7)

    $ 334     $ 461     $ 325     $ 466  

 

12

(4) 

Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms

(5) 

Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

(6) 

Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

(7) 

Gaming machines win per unit per day is shown before non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

 

13

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