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Melco Announces Unaudited Fourth Quarter 2023 Earnings

MACAU, Feb. 29, 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 fourth quarter and full year ended December 31, 2023.

Total operating revenues for the fourth quarter of 2023 were US$1.09 billion, representing an increase of approximately 224% from US$337.1 million for the comparable period in 2022. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of COVID-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2.

Operating loss for the fourth quarter of 2023 was US$94.4 million, compared with operating loss of US$199.5 million in the fourth quarter of 2022.

Melco generated Adjusted Property EBITDA(1) of US$303.4 million in the fourth quarter of 2023, compared with negative Adjusted Property EBITDA of US$6.8 million in the fourth quarter of 2022.

Net loss attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2023 was US$156.6 million, or US$0.36 per ADS, compared with US$251.9 million, or US$0.57 per ADS, in the fourth quarter of 2022. Net loss attributable to noncontrolling interests was US$20.8 million and US$42.1 million during the fourth quarters of 2023 and 2022, 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, “Macau continues to demonstrate its extraordinary growth potential and has shown resilience despite China’s uncertain macro-economic outlook. Visitations to Macau during this month’s Chinese New Year holiday period were close to 2019 levels and the number of visitors from China exceeded 2019.

“2023 was a year of post-pandemic recovery and the debut of our new developments, including City of Dreams Mediterranean and Studio City Phase 2. 2024 is set to be another exciting year for us as we continue to develop new ideas and strategies to bring market leading leisure and entertainment offerings to our customers. 

“As part of our initiatives to ensure Melco is leading the market in all areas of our business, we are making changes to management in Macau and bolstering the leadership team. We expect these changes will strengthen us as a team to secure a stronger and more competitive future.

“City of Dreams Manila in the Philippines has continued to show solid growth with significant market share gains in mass table games and slots. City of Dreams Mediterranean in Cyprus continues to be impacted by the conflicts in the region but is starting to show some signs of recovery so far this year.”

City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2023, total operating revenues at City of Dreams were US$559.8 million, compared with US$139.2 million in the fourth quarter of 2022. City of Dreams generated Adjusted EBITDA of US$166.2 million in the fourth quarter of 2023, compared with negative Adjusted EBITDA of US$7.8 million in the fourth quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.

Rolling chip volume was US$5.19 billion for the fourth quarter of 2023 versus US$850.4 million in the fourth quarter of 2022. The rolling chip win rate was 2.55% in the fourth quarter of 2023 versus 4.47% in the fourth quarter of 2022. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$1.44 billion in the fourth quarter of 2023, compared with US$292.2 million in the fourth quarter of 2022. The mass market table games hold percentage was 31.6% in the fourth quarter of 2023, compared with 29.2% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$957.4 million, compared with US$194.7 million in the fourth quarter of 2022. The gaming machine win rate was 3.1% in the fourth quarter of 2023 versus 4.5% in the fourth quarter of 2022.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2023 was US$80.1 million, compared with US$30.5 million in the fourth quarter of 2022.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2023, total operating revenues at Altira Macau were US$33.6 million, compared with US$9.0 million in the fourth quarter of 2022. Altira Macau generated Adjusted EBITDA of US$0.3 million in the fourth quarter of 2023, compared with negative Adjusted EBITDA of US$9.5 million in the fourth quarter of 2022. The year-over-year change in Adjusted EBITDA was primarily a result of better performance in the mass market segment and non-gaming operations.

In the mass market table games segment, drop was US$149.0 million in the fourth quarter of 2023 versus US$31.9 million in the fourth quarter of 2022. The mass market table games hold percentage was 23.8% in the fourth quarter of 2023, compared with 20.6% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$87.8 million, compared with US$40.8 million in the fourth quarter of 2022. The gaming machine win rate was 3.2% in the fourth quarter of 2023 versus 3.0% in the fourth quarter of 2022.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2023 was US$5.3 million, compared with US$2.1 million in the fourth quarter of 2022.

Mocha and Other Fourth Quarter Results

Total operating revenues from Mocha and Other were US$28.7 million in the fourth quarter of 2023, compared with US$19.5 million in the fourth quarter of 2022. Mocha and Other generated Adjusted EBITDA of US$6.0 million in the fourth quarter of 2023, compared with Adjusted EBITDA of US$1.8 million in the fourth quarter of 2022.

Mass market table games drop was US$49.6 million in the fourth quarter of 2023 versus US$21.0 million in the fourth quarter of 2022. The mass market table games hold percentage was 14.8% in the fourth quarter of 2023 versus 19.7% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$493.0 million, compared with US$372.7 million in the fourth quarter of 2022. The gaming machine win rate was 4.6% in the fourth quarter of 2023 versus 4.2% in the fourth quarter of 2022.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2023, total operating revenues at Studio City were US$302.5 million, compared with US$43.4 million in the fourth quarter of 2022. Studio City generated Adjusted EBITDA of US$77.3 million in the fourth quarter of 2023, compared with negative Adjusted EBITDA of US$25.3 million in the fourth quarter of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market segment and non-gaming operations.

Studio City’s rolling chip volume was US$566.0 million in the fourth quarter of 2023 versus US$251.4 million in the fourth quarter of 2022. The rolling chip win rate was 1.86% in the fourth quarter of 2023 versus 2.70% in the fourth quarter of 2022. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$864.1 million in the fourth quarter of 2023, compared with US$113.5 million in the fourth quarter of 2022. The mass market table games hold percentage was 30.0% in the fourth quarter of 2023, compared with 27.1% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$778.3 million, compared with US$124.5 million in the fourth quarter of 2022. The gaming machine win rate was 3.2% in the fourth quarter of 2023, compared with 2.7% in the fourth quarter of 2022.

Total non-gaming revenue at Studio City in the fourth quarter of 2023 was US$65.3 million, compared with US$9.6 million in the fourth quarter of 2022.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2023, total operating revenues at City of Dreams Manila were US$120.5 million, compared with US$95.2 million in the fourth quarter of 2022. City of Dreams Manila generated Adjusted EBITDA of US$48.8 million in the fourth quarter of 2023, compared with Adjusted EBITDA of US$23.6 million in the comparable period of 2022. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in the mass market segment and non-gaming operations.

City of Dreams Manila’s rolling chip volume was US$416.5 million in the fourth quarter of 2023 versus US$940.7 million in the fourth quarter of 2022. The rolling chip win rate was 3.97% in the fourth quarter of 2023 versus 1.84% in the fourth quarter of 2022. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop increased to US$198.2 million in the fourth quarter of 2023, compared with US$148.2 million in the fourth quarter of 2022. The mass market table games hold percentage was 29.1% in the fourth quarter of 2023, compared with 31.9% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$1.08 billion, compared with US$1.02 billion in the fourth quarter of 2022. The gaming machine win rate was 5.3% in the fourth quarter of 2023 versus 4.7% in the fourth quarter of 2022.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2023 was US$30.3 million, compared with US$24.5 million in the fourth quarter of 2022.

City of Dreams Mediterranean and Other Fourth 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 December 31, 2023 were US$47.3 million, compared with US$28.7 million in the fourth quarter of 2022. City of Dreams Mediterranean and Other generated Adjusted EBITDA of US$4.7 million in the fourth quarter of 2023, compared with Adjusted EBITDA of US$10.5 million in the fourth quarter of 2022.

Rolling chip volume was US$6.4 million for the fourth quarter of 2023 versus US$1.1 million in the fourth quarter of 2022. The rolling chip win rate was negative 8.85% in the fourth quarter of 2023, compared with 16.43% in the fourth quarter of 2022. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$87.6 million in the fourth quarter of 2023, compared with US$38.0 million in the fourth quarter of 2022. The mass market table games hold percentage was 22.1% in the fourth quarter of 2023, compared with 24.9% in the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2023 was US$492.8 million, compared with US$392.4 million in the fourth quarter of 2022. The gaming machine win rate was 5.0% in both the fourth quarters of 2023 and 2022.

Total non-gaming revenue at City of Dreams Mediterranean and Other in the fourth quarter of 2023 was US$13.0 million, compared with US$0.2 million in the fourth quarter of 2022.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2023 were US$117.6 million, which mainly included interest expenses of US$128.8 million, partially offset by interest income of US$5.5 million.

Depreciation and amortization costs of US$144.7 million were recorded in the fourth quarter of 2023, of which US$5.7 million related to the amortization expense for land use rights.

In the fourth quarter of 2023, we recognized an impairment in long-lived assets of US$207.6 million in Property Charges and Other to reflect the significant decrease in the market value of Altira Macau. The change in market value reflects a change in forecasted performance of Altira Macau given the latest market conditions and disruptions to the business caused by COVID-19 and the cessation of arrangements with gaming promoters.

The Adjusted EBITDA for Studio City for the three months ended December 31, 2023 referred to above was US$12.6 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated February 29, 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 December 31, 2023 aggregated to US$1.44 billion, including US$125.1 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$7.47 billion at the end of the fourth quarter of 2023, a reduction of US$300 million compared to the total debt balance as of September 30, 2023, primarily as a result of the approximately US$200 million repayment of the revolving credit facility and the US$100 million cash tender offer of the 6.00% senior notes due 2025 issued by Studio City Finance Limited on July 15, 2020. Available liquidity, including cash and undrawn revolving credit facilities, as of December 31, 2023, was US$2.36 billion.

Capital expenditures for the fourth quarter of 2023 were US$43.6 million, which included costs related to the enhancement projects at City of Dreams in Macau and Studio City.

Full Year Results

For the year ended December 31, 2023, Melco Resorts & Entertainment Limited reported total operating revenues of US$3.78 billion versus US$1.35 billion in the prior year. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments and non-gaming operations following the relaxation of COVID-19 related restrictions in Macau in January 2023 and the opening of Studio City Phase 2.

Operating income for 2023 was US$65.0 million, compared with an operating loss of US$743.1 million for 2022.

Melco generated Adjusted Property EBITDA of US$1.04 billion for the year ended December 31, 2023, compared with Adjusted Property EBITDA of US$0.6 million in 2022.

Net loss attributable to Melco Resorts & Entertainment Limited for 2023 was US$277.6 million, or US$0.63 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$930.5 million, or US$2.01 per ADS, for 2022. Net loss attributable to noncontrolling interests was US$88.4 million and US$166.6 million for 2023 and 2022, respectively, all of which were related to Studio City, City of Dreams Manila, and City of Dreams Mediterranean and Other.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2023 financial results on Thursday, February 29, 2024 at 8:30 a.m. Eastern Time (or 9:30 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/BI03392c7c8a724e1d9181c7d0ffc9b5dc

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) COVID-19 outbreaks, and the impact of their consequences on our business, our industry and the global economy, (ii) risks associated with the Macau gaming law amended in 2022 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”), land rent to Belle Corporation 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, land rent to Belle Corporation, 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.
  
(2)“Adjusted net income/loss” is net income/loss before pre-opening costs, development costs, property charges and other and gain 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

 

            
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
            
 Three Months Ended Year Ended
 December 31, December 31,
 2023
 2022
 2023
 2022
            
Operating revenues:           
Casino$897,776  $267,468  $3,077,312  $1,076,398 
Rooms 103,448   27,275   338,224   116,552 
Food and beverage 65,217   23,280   208,885   85,518 
Entertainment, retail and other 27,172   19,065   150,826   71,509 
Total operating revenues 1,093,613   337,088   3,775,247   1,349,977 
            
Operating costs and expenses:           
Casino (597,087)  (227,248)  (2,034,848)  (912,839)
Rooms (28,070)  (11,142)  (87,637)  (46,199)
Food and beverage (51,823)  (20,909)  (163,492)  (82,000)
Entertainment, retail and other (8,368)  (5,583)  (76,704)  (22,419)
General and administrative (129,351)  (120,742)  (488,127)  (423,225)
Payments to the Philippine Parties (9,813)  (2,016)  (42,451)  (28,894)
Pre-opening costs (3,550)  (6,670)  (43,994)  (15,585)
Development costs (1,202)  -   (1,202)  - 
Amortization of gaming subconcession -   (2,853)  -   (32,785)
Amortization of land use rights (5,680)  (5,672)  (22,670)  (22,662)
Depreciation and amortization (139,060)  (113,350)  (520,726)  (466,492)
Property charges and other (213,992)  (20,387)  (228,437)  (39,982)
Total operating costs and expenses (1,187,996)  (536,572)  (3,710,288)  (2,093,082)
Operating (loss) income (94,383)  (199,484)  64,959   (743,105)
Non-operating income (expenses):           
Interest income 5,468   9,433   23,305   26,458 
Interest expenses, net of amounts capitalized (128,794)  (104,667)  (492,391)  (376,722)
Other financing costs (1,351)  (957)  (4,372)  (6,396)
Foreign exchange gains, net 4,524   1,047   2,232   3,904 
Other income, net 992   1,217   2,748   3,930 
Gain on extinguishment of debt 1,531   -   1,611   - 
Total non-operating expenses, net (117,630)  (93,927)  (466,867)  (348,826)
Loss before income tax (212,013)  (293,411)  (401,908)  (1,091,931)
Income tax benefit (expense) 34,619   (618)  35,914   (5,236)
Net loss (177,394)  (294,029)  (365,994)  (1,097,167)
Net loss attributable to noncontrolling interests 20,842   42,088   88,410   166,641 
Net loss attributable to Melco Resorts & Entertainment Limited$(156,552) $(251,941) $(277,584) $(930,526)
            
Net loss attributable to Melco Resorts & Entertainment Limited per share:         
Basic$(0.119) $(0.189) $(0.211) $(0.669)
Diluted$(0.119) $(0.189) $(0.211) $(0.669)
            
Net loss attributable to Melco Resorts & Entertainment Limited per ADS:         
Basic$(0.358) $(0.566) $(0.633) $(2.007)
Diluted$(0.358) $(0.566) $(0.633) $(2.008)
            
Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation:           
Basic 1,311,270,775   1,335,283,346   1,314,605,173   1,391,154,836 
Diluted 1,311,270,775   1,335,283,346   1,314,605,173   1,391,154,836 
            



       
Melco Resorts & Entertainment Limited and Subsidiaries
Condensed Consolidated Balance Sheets
 (In thousands, except share and per share data)
       
       
  December 31, December 31,
  2023
 2022
   (Unaudited)   
       
ASSETS     
       
Current assets:     
 Cash and cash equivalents$1,310,715  $1,812,729 
 Restricted cash 27   50,992 
 Accounts receivable, net 91,638   55,992 
 Receivables from affiliated companies 797   630 
 Inventories 29,427   26,416 
 Prepaid expenses and other current assets 111,688   119,410 
 Assets held for sale -   8,503 
Total current assets 1,544,292   2,074,672 
       
Property and equipment, net (3) 5,533,994   5,870,905 
Intangible assets, net (3) (4) 304,652   43,610 
Goodwill 81,582   81,606 
Long-term prepayments, deposits and other assets 100,320   159,697 
Receivables from an affiliated company -   216,333 
Restricted cash 125,094   124,736 
Deferred tax assets, net 49,336   638 
Operating lease right-of-use assets 62,356   58,715 
Land use rights, net 582,782   670,872 
Total assets$8,384,408  $9,301,784 
       
LIABILITIES AND DEFICIT     
       
Current liabilities:     
 Accounts payable$11,752  $6,730 
 Accrued expenses and other current liabilities (3) (4) 1,008,316   809,305 
 Income tax payable 28,183   11,610 
 Operating lease liabilities, current 19,685   12,761 
 Finance lease liabilities, current 35,307   34,959 
 Current portion of long-term debt, net -   322,500 
 Payables to affiliated companies 377   761 
Total current liabilities 1,103,620   1,198,626 
       
Long-term debt, net 7,472,620   8,090,008 
Other long-term liabilities (3) (4) 322,591   33,712 
Deferred tax liabilities, net 34,959   39,677 
Operating lease liabilities, non-current 53,858   55,832 
Finance lease liabilities, non-current 187,474   198,291 
Total liabilities 9,175,122   9,616,146 
       
Deficit:     
 Ordinary shares, par value $0.01; 7,300,000,000 shares authorized;     
   1,404,679,067 and 1,445,052,143 shares issued;     
   1,311,270,775 and 1,335,307,327 shares outstanding, respectively 14,047   14,451 
 Treasury shares, at cost; 93,408,292 and 109,744,816 shares, respectively (255,068)  (241,750)
 Additional paid-in capital 3,109,212   3,218,895 
 Accumulated other comprehensive losses (98,599)  (111,969)
 Accumulated losses (4,007,536)  (3,729,952)
Total Melco Resorts & Entertainment Limited shareholders’ deficit (1,237,944)  (850,325)
Noncontrolling interests 447,230   535,963 
Total deficit (790,714)  (314,362)
Total liabilities and deficit$8,384,408  $9,301,784 
       
(3)On December 16, 2022, the Macau government awarded a ten-year concession to operate games of fortune and chance in casinos in Macau (the “Concession”) to Melco Resorts (Macau) Limited (“Melco Resorts Macau”), a subsidiary of Melco. The term of the Concession commenced on January 1, 2023 and ends on December 31, 2032 and Melco Resorts Macau is authorized to operate the Altira Casino, the City of Dreams Casino and the Studio City Casino as well as the Grand Dragon Casino and the Mocha Clubs. Under the Concession, Melco Resorts Macau is obligated to pay the Macau government a fixed annual premium of Macau Patacas (“MOP”) 30,000 (equivalent to $3,729) plus a variable annual premium calculated in accordance with the number and type of gaming tables (subject to a minimum of 500 tables) and electronic gaming machines (subject to a minimum of 1,000 machines) operated by Melco Resorts Macau. The variable annual premium is MOP300 (equivalent to $37) for each gaming table reserved exclusively to certain kinds of games or players, MOP150 (equivalent to $19) for each gaming table not so exclusively reserved and MOP1 (equivalent to $0.1) for each electronic gaming machine.

On December 30, 2022, in accordance with the obligations under the letters of undertakings dated June 23, 2022, Melco Resorts Macau and certain subsidiaries of Melco, which hold the land lease rights for the properties on which the Altira Casino, City of Dreams Casino and Studio City Casino are located, executed a public deed pursuant to which the gaming and gaming support areas comprising the Altira Casino, City of Dreams Casino and Studio City Casino with an area of 17,128.8 square meters, 31,227.3 square meters and 28,784.3 square meters, respectively, and related gaming equipment and utensils (collectively as referred to the “Reversion Assets”), reverted to the Macau government, without compensation and free and clear from any charges or encumbrances, at the expiration of the previous subconcession in accordance with the Macau gaming law. The Reversion Assets that reverted to the Macau government at the expiration of the previous subconcession are currently owned by the Macau government. Under the terms of the Macau gaming law and the Concession, effective as of January 1, 2023, the Reversion Assets were transferred by the Macau government to Melco Resorts Macau for use in its operations during the Concession for a fee of MOP0.75 (equivalent to $0.09) per square meter of the casino for years 1 to 3 of the Concession, subject to a consumer price index increase in years 2 and 3 of the Concession and such fee will increase to MOP2.5 (equivalent to $0.3) per square meter of the casino for years 4 to 10 of the Concession, subject to a consumer price index increase in years 5 to 10 of the Concession (the “Fee”). As Melco Resorts Macau continues to be operated with the Reversion Assets in the same manner as under the previous subconcession, obtains substantially all of the economic benefits and bears all of the risks arising from the use of these assets, as well as assuming it will be successful in the awarding of a new concession upon expiry of the Concession, the Company continues to recognize these Reversion Assets as property and equipment over their remaining estimated useful lives.

 On January 1, 2023, the Company recognized an intangible asset and financial liability of $239,588, representing the right to use and operate the Reversion Assets, the right to conduct games of fortunes and chance in Macau and the unconditional obligation to make payments under the Concession. This intangible asset comprises the contractually obligated annual payments of fixed premium and variable premiums, as well as the Fee without considering the consumer price index under the Concession. The contractually obligated annual variable premium payments associated with the intangible asset were determined using the total number of gaming tables and the total number of electronic gaming machines that Melco Resorts Macau is currently approved to operate by the Macau government. In the accompanying condensed consolidated balance sheet, the noncurrent portion of the financial liability is included in “Other long-term liabilities” and the current portion is included in “Accrued expenses and other current liabilities”. The intangible asset is being amortized on a straight-line basis over the period of the Concession, being 10 years.

(4)On June 26, 2017, the Cyprus government granted a gaming license (the “Cyprus License”) to an affiliate of Melco in Cyprus (the “Cyprus Subsidiary”) to develop, operate and maintain an integrated casino resort in Limassol, Cyprus (and, up until completion and opening of the integrated casino resort, a temporary casino facility) and up to four satellite casino premises in Cyprus for a term of 30 years, the first 15 years of which are exclusive. Pursuant to the Cyprus License agreement, the Cyprus Subsidiary is obligated to pay the Cyprus government an annual license fee for the integrated casino resort (and prior to opening of the integrated casino resort, the temporary casino) and any operating satellite casinos. The Cyprus License required the integrated casino resort to open by the extended deadline of June 30, 2023 as approved by the Cyprus government (the “Cyprus License Requirement”), failing which the Cyprus government would have been entitled to terminate the Cyprus License.

On June 28, 2023, upon fulfillment of the Cyprus License Requirement, the Company recognized an intangible asset of $73,928 and financial liability of $73,059, representing the right under the Cyprus License and the unconditional obligation to pay i) a minimum annual license fee for City of Dreams Mediterranean of Euros (“EUR”) 5,000 (equivalent to $5,535) per year; and ii) an aggregate annual license fee for three operating satellite casinos of EUR2,000 (equivalent to $2,214), during the term of the Cyprus License from June 28, 2023. In the accompanying condensed consolidated balance sheet, the noncurrent portion of the financial liability of the Cyprus License is included in “Other long-term liabilities” and the current portion is included in “Accrued expenses and other current liabilities”. The intangible asset is being amortized on a straight-line basis over the remaining period of the Cyprus License until June 2047.
       


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net 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 Year Ended
 December 31, December 31,
 2023
 2022
 2023
 2022
        
          
Net loss attributable to Melco Resorts & Entertainment Limited$(156,552) $(251,941) $(277,584) $(930,526)
Pre-opening costs 3,550   6,670   43,994   15,585 
Development costs 1,202   -   1,202   - 
Property charges and other 213,992   20,387   228,437   39,982 
Gain on extinguishment of debt (1,531)  -   (1,611)  - 
Income tax impact on adjustments (5,130)  (412)  (5,130)  (1,010)
Noncontrolling interests impact on adjustments 230   (3,015)  (13,906)  (7,796)
Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited$55,761  $(228,311) $(24,598) $(883,765)
            
Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share:         
Basic$0.043  $(0.171) $(0.019) $(0.635)
Diluted$0.042  $(0.171) $(0.019) $(0.636)
            
Adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per ADS:         
Basic$0.128  $(0.513) $(0.056) $(1.906)
Diluted$0.127  $(0.513) $(0.056) $(1.908)
            
Weighted average shares outstanding used in adjusted net income (loss) attributable to Melco Resorts & Entertainment Limited per share calculation:           
Basic 1,311,270,775   1,335,283,346   1,314,605,173   1,391,154,836 
Diluted 1,316,408,710   1,335,283,346   1,314,605,173   1,391,154,836 
            


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands)
                          
                          
  Three Months Ended December 31, 2023
  Altira
Macau
 Mocha
and Other
 City of
Dreams
 Studio
City
 City of Dreams
Manila
 City of Dreams
Mediterranean
and Other
(5)
 Corporate
and Other
 Total
                 
Operating (loss) income$(212,857) $5,231  $104,471  $21,668  $26,012  $(9,246) $(29,662) $(94,383)
                          
 Payments to the Philippine Parties -   -   -   -   9,813   -   -   9,813 
 Land rent to Belle Corporation -   -   -   -   475   -   -   475 
 Pre-opening costs -   -   3,946   (169)  -   (227)  -   3,550 
 Development costs -   -   -   -   -   -   1,202   1,202 
 Depreciation and amortization 5,420   751   53,283   54,621   12,057   13,300   5,308   144,740 
 Share-based compensation 120   37   1,354   344   303   100   5,987   8,245 
 Property charges and other 207,608   -   3,144   871   181   809   1,379   213,992 
Adjusted EBITDA 291   6,019   166,198   77,335   48,841   4,736   (15,786)  287,634 
 Corporate and Other expenses -   -   -   -   -   -   15,786   15,786 
Adjusted Property EBITDA$291  $6,019  $166,198  $77,335  $48,841  $4,736  $-  $303,420 
                          
                          
  Three Months Ended December 31, 2022
  Altira
Macau
 Mocha
and Other
 City of
Dreams
 Studio
City
 City of Dreams
Manila
 Cyprus
Operations
 Corporate
and Other
 Total
                 
Operating (loss) income$(15,546) $296  $(87,572) $(63,343) $7,620  $3,465  $(44,404) $(199,484)
                          
 Payments to the Philippine Parties -   -   -   -   2,016   -   -   2,016 
 Land rent to Belle Corporation -   -   -   -   467   -   -   467 
 Pre-opening costs -   -   -   1,429   -   5,241   -   6,670 
 Depreciation and amortization 5,153   1,317   59,266   33,585   12,657   1,394   8,503   121,875 
 Share-based compensation 437   160   7,999   861   912   396   17,184   27,949 
 Property charges and other 456   36   12,497   2,144   (120)  -   5,374   20,387 
Adjusted EBITDA (9,500)  1,809   (7,810)  (25,324)  23,552   10,496   (13,343) -(20,120)
 Corporate and Other expenses -   -   -   -   -   -   13,343   13,343 
Adjusted Property EBITDA$(9,500) $1,809  $(7,810) $(25,324) $23,552  $10,496  $-  $(6,777)
                          
                          
(5)Effective from June 12, 2023, with the soft opening of City of Dreams Mediterranean, the Cyprus Operations segment which previously included the operation of the temporary casino before its closure on June 9, 2023 and the licensed satellite casinos in Cyprus, has been renamed to City of Dreams Mediterranean and Other segment which included the operation of City of Dreams Mediterranean and the licensed satellite casinos in Cyprus.
                          


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Operating Income (Loss) to Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands)
                          
                          
  Year Ended December 31, 2023
  Altira
Macau
 Mocha
and Other
(6)
 City of
Dreams
 Studio
City
 City of Dreams
Manila
 City of Dreams
Mediterranean
and Other
(5)
 Corporate
and Other
 Total
                 
Operating (loss) income$(232,871) $23,328  $314,917  $1,382  $110,143  $(26,468) $(125,472) $64,959 
                          
 Payments to the Philippine Parties -   -   -   -   42,451   -   -   42,451 
 Land rent to Belle Corporation -   -   -   -   1,911   -   -   1,911 
 Pre-opening costs -   -   3,946   17,179   -   22,869   -   43,994 
 Development costs -   -   -   -   -   -   1,202   1,202 
 Depreciation and amortization 23,175   3,795   230,034   185,389   49,979   29,845   21,179   543,396 
 Share-based compensation 300   87   6,602   1,425   1,184   456   25,419   35,473 
 Property charges and other 208,119   76   20,814   1,415   (216)  798   (2,569)  228,437 
Adjusted EBITDA (1,277)  27,286   576,313   206,790   205,452   27,500   (80,241)  961,823 
 Corporate and Other expenses -   -   -   -   -   -   80,241   80,241 
Adjusted Property EBITDA$(1,277) $27,286  $576,313  $206,790  $205,452  $27,500  $-  $1,042,064 
                          
                          
  Year Ended December 31, 2022
  Altira
Macau
 Mocha
and Other
(6)
 City of
Dreams
 Studio
City
 City of Dreams
Manila
 Cyprus
Operations
 Corporate
and Other
 Total
                 
Operating (loss) income$(66,692) $4,772  $(309,543) $(251,946) $55,365  $3,867  $(178,928) $(743,105)
                          
 Payments to the Philippine Parties -   -   -   -   28,894   -   -   28,894 
 Land rent to Belle Corporation -   -   -   -   2,318   -   -   2,318 
 Pre-opening costs -   -   -   2,941   -   12,644   -   15,585 
 Development costs -   -   -   -   -   -   -   - 
 Depreciation and amortization 21,190   5,130   238,752   134,813   58,044   6,259   57,751   521,939 
 Share-based compensation 1,282   313   20,074   3,090   2,168   923   43,959   71,809 
 Property charges and other 1,200   76   18,557   5,938   137   3   14,071   39,982 
Adjusted EBITDA (43,020)  10,291   (32,160)  (105,164)  146,926   23,696   (63,147)  (62,578)
 Corporate and Other expenses -   -   -   -   -   -   63,147   63,147 
Adjusted Property EBITDA$(43,020) $10,291  $(32,160) $(105,164) $146,926  $23,696  $-  $569 
                          
                          
(6)Effective from June 27, 2022, the Grand Dragon Casino, which focuses on mass market table games and was previously reported under the Corporate and Other segment, has been included in the Mocha and Other segment.
               
                          


Melco Resorts & Entertainment Limited and Subsidiaries
Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to
Adjusted EBITDA and Adjusted Property EBITDA (Unaudited)
(In thousands)
            
            
 Three Months Ended
December 31,
 Year Ended
December 31,
 2023
 2022
 2023
 2022
         
Net loss attributable to Melco Resorts & Entertainment Limited$(156,552) $(251,941) $(277,584) $(930,526)
Net loss attributable to noncontrolling interests (20,842)  (42,088)  (88,410)  (166,641)
Net loss (177,394)  (294,029)  (365,994)  (1,097,167)
Income tax (benefit) expense (34,619)  618   (35,914)  5,236 
Interest and other non-operating expenses, net 117,630   93,927   466,867   348,826 
Depreciation and amortization 144,740   121,875   543,396   521,939 
Property charges and other 213,992   20,387   228,437   39,982 
Share-based compensation 8,245   27,949   35,473   71,809 
Development costs 1,202   -   1,202   - 
Pre-opening costs 3,550   6,670   43,994   15,585 
Land rent to Belle Corporation 475   467   1,911   2,318 
Payments to the Philippine Parties 9,813   2,016   42,451   28,894 
Adjusted EBITDA 287,634   (20,120)  961,823   (62,578)
Corporate and Other expenses 15,786   13,343   80,241   63,147 
Adjusted Property EBITDA$303,420  $(6,777) $1,042,064  $569 
            


Melco Resorts & Entertainment Limited and Subsidiaries
Supplemental Data Schedule
          
          
   Three Months Ended
December 31,
 Year Ended
December 31,
    2023   2022   2023   2022 
Room Statistics(7):       
 Altira Macau       
  Average daily rate (8)$135  $96  $136  $97 
  Occupancy per available room 94%  49%  87%  42%
  Revenue per available room (9)$127  $47  $118  $41 
          
 City of Dreams       
  Average daily rate (8)$199  $211  $201  $205 
  Occupancy per available room 93%  28%  86%  27%
  Revenue per available room (9)$186  $59  $173  $56 
          
 Studio City       
  Average daily rate (8)$163  $100  $153  $111 
  Occupancy per available room 94%  32%  90%  28%
  Revenue per available room (9)$154  $32  $137  $31 
          
 City of Dreams Manila       
  Average daily rate (8)$170  $140  $177  $177 
  Occupancy per available room 97%  96%  97%  95%
  Revenue per available room (9)$165  $134  $171  $167 
          
 City of Dreams Mediterranean and Other(5)       
  Average daily rate (8)$341  N/A $359  N/A
  Occupancy per available room 53% N/A  58% N/A
  Revenue per available room (9)$181  N/A $209  N/A
          
Other Information(10):       
 Altira Macau       
  Average number of table games 43   91   44   93 
  Average number of gaming machines 135   166   141   146 
  Table games win per unit per day (11)$8,970  $780  $6,895  $737 
  Gaming machines win per unit per day (12)$227  $81  $224  $116 
          
 Mocha and Other(6)       
  Average number of table games 18   25   17   25 
  Average number of gaming machines 855   897   874   935 
  Table games win per unit per day (11)$4,439  $1,806  $4,850  $1,792 
  Gaming machines win per unit per day (12)$287  $188  $291  $209 
          
 City of Dreams       
  Average number of table games 430   442   430   447 
  Average number of gaming machines 610   675   628   677 
  Table games win per unit per day (11)$14,861  $3,036  $13,092  $3,361 
  Gaming machines win per unit per day (12)$537  $141  $464  $140 
          
 Studio City       
  Average number of table games 246   277   246   277 
  Average number of gaming machines 643   671   661   700 
  Table games win per unit per day (11)$11,936  $1,477  $9,239  $1,562 
  Gaming machines win per unit per day (12)$418  $54  $343  $75 
          
 City of Dreams Manila       
  Average number of table games 266   261   267   274 
  Average number of gaming machines 2,296   2,218   2,297   2,266 
  Table games win per unit per day (11)$3,026  $2,687  $3,390  $2,496 
  Gaming machines win per unit per day (12)$270  $236  $248  $232 
          
 City of Dreams Mediterranean and Other(5)       
  Average number of table games 103   35   71   35 
  Average number of gaming machines 908   452   690   454 
  Table games win per unit per day (11)$1,985  $2,978  $2,254  $2,190 
  Gaming machines win per unit per day (12)$297  $472  $350  $394 
          
          
(7)Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak
(8)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
(9)Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available
(10)Table games and gaming machines that were not in operation due to government mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded
(11)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
(12)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
          

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