The following is a summary of the Melco Resorts & Entertainment Limited (MLCO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Melco Resorts reported Q1 2024 adjusted property EBITDA was approximately $299 million.
The company paid down another $250 million in debt and raised $750 million in bonds which decreases its refinancing risk in 2025.
Significant hits were from unfavorable win rates impacting results at City of Dreams Macau and City of Dreams Manila by around $33 million.
It further mitigated its refinancing risk in 2025 via transactions that include the extension of a $1.9 billion revolving credit facility to 2027, a $750 million bond issuance, and a $100 million tender offer on Studio City bonds due 2025.
Business Progress:
Operational changes were undertaken with a shift in management, sales force restructuring, gaming area reconfiguration and new retail outlet openings.
An ongoing recovery for Melco Macau is apparent, with Q1 2024 property EBITDA reaching 89% of 2019 figures.
Collaboration with the John Keells group was announced for a new integrated resort in Sri Lanka named City of Dreams Sri Lanka, set to open mid-2025.
The company is expanding its marketing efforts throughout Europe and the Middle East.
New leadership was instated with Tim Kelly becoming Property President of City of Dreams Macau.
The company is reviewing its operating expenses, anticipating an increase but expecting positive EBITDA.
Melco has centralised its sales force under a single leader to enhance customer experiences.
A $125 million investment expands the company into Sri Lanka, targeting India's growing gaming market via partnering with John Keells.
Bookings for May show substantial improvements suggesting future performance gains.
The company is exploring opportunities in Thailand in a capital light manner while simultaneously focusing on balance sheet repair.
More details: Melco Resorts and Entertainment IR
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