The following is a summary of the Melco Resorts & Entertainment Limited (MLCO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Adjusted property EBITDA for Q2 2024 was $303 million.
Rolling chip win rates increased to normal levels around 3%.
Operational expenses in Macau increased due to labor costs reflecting a 2.5% salary increase and additional hiring.The company extended its $1.9 billion revolving credit facility to 2027 and issued a $750 million bond at Melco.
Current liquidity stands robust with $1.3 billion of consolidated cash on hand and over $3 billion in available liquidity.
Business Progress:
New leadership enhancement with Tim Kelly as Property President for City of Dreams Macau.
Continual market position expansion in Macau, Manila and Cyprus with significant EBITDA growth.
Partnership with John Hughes Group progressing for Sri Lanka's first integrated resort slated to open in stages between 4Q 2024 and mid-2025.
Reinvestment in Macau properties including Studio City and City of Dreams to enhance premium guest experiences.
Opportunities:
The company is actively investing in luxury and premium enhancements across its properties in Macau to reestablish its market leadership in these segments.
The strategic partnership for developing Sri Lanka's first integrated resort marks significant future growth potential in new leisure and gaming markets.
Risks:
Some financial risk mitigation with extensive refinancing operations, including bonds and credit facility extensions, to manage future financial obligations effectively.
Noted operational expenses in Macau increased due to labor costs, reflecting not only salary increases but also strategic hiring to improve service quality.
The potential risks associated with geopolitical impacts on the Macau region.
More details: Melco Resorts and Entertainment IR
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