Melco Resorts & Entertainment Limited (MLCO) 6-K Melco Announces Unaudited Fourth Quarter 2022 Earnings

Exhibit 99.1

Melco Announces Unaudited Fourth Quarter 2022 Earnings

MACAU, March 01, 2023 (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, 2022.

Total operating revenues for the fourth quarter of 2022 were US$337.1 million, representing a decrease of approximately 30% from US$480.6 million for the comparable period in 2021. The decrease in total operating revenues was primarily attributable to the heightened travel restrictions in Macau and mainland China related to COVID-19 during the quarter which led to softer performance in the rolling chip and mass market table games segments.

Operating loss for the fourth quarter of 2022 was US$199.5 million, compared with operating loss of US$104.4 million in the fourth quarter of 2021.

Melco generated negative Adjusted Property EBITDA(1) of US$6.8 million in the fourth quarter of 2022, compared with Adjusted Property EBITDA of US$94.0 million in the fourth quarter of 2021.

Net loss attributable to Melco Resorts & Entertainment Limited for the fourth quarter of 2022 was US$251.9 million, or US$0.57 per ADS, compared with US$159.9 million, or US$0.34 per ADS, in the fourth quarter of 2021. The net loss attributable to noncontrolling interests was US$42.1 million and US$30.0 million during the fourth quarters of 2022 and 2021, respectively, all of which were related to Studio City, City of Dreams Manila, and the Cyprus Operations.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Our results for the fourth quarter of 2022 continued to be impacted by the travel restrictions imposed across mainland China and Macau. However, we are encouraged by the increased visitation and volume that we have seen since the travel restrictions between mainland China and Macau were relaxed on January 8, 2023. Our recent performance reinforces our belief in the return of pent-up demand and our view that Macau will continue to develop as a leading international destination for entertainment and leisure.

“We are honored to have been awarded a gaming concession to continue to operate in Macau for the next 10 years. We greatly appreciate the consideration given to our proposal and our investment propositions that we believe will continue to build on our existing strengths in entertainment and non-gaming attractions. We pledge our full support to the sustainable and diversified development of the tourism and leisure industry in Macau, and will continue to work with the Macau government, the community, and stakeholders to contribute to the city’s development as a leading global tourism destination.

“Gaming volumes in the Philippines have reached close to pre-pandemic levels, and volumes in Cyprus have exceeded those we had seen pre-pandemic. We are optimistic about continued growth in the Philippines and Cyprus as international travel normalizes.

“In respect to our development projects, we expect Studio City Phase 2 to open in the second quarter of 2023. The first stage of opening is expected to include one of our hotel towers and the indoor water park, which is expected to be the largest of its kind in Asia. The second phase of opening is expected to be in the third quarter. In Cyprus, we have been informed that the Council of Ministers has approved an extension of the deadline to open City of Dreams Mediterranean under the terms of our gaming license to June 30, 2023 and we continue to work with our contractors with a target to open within that timeframe.

“We remain steadfast on reaching our 2030 goals in environmental sustainability. We are monitoring food waste through the Winnow AI technology installed in the employee kitchens and dining areas and continuously adjust menus accordingly. Food waste has reduced by 50% at our employee dining room at City of Dreams Manila due to continued efforts in internal engagement initiatives. Food waste composted on site in both Macau and Manila increased by 30% overall compared to 2021 and usage of the compost for our properties green areas has continued to improve as a result of ongoing adjustments with our landscaping teams. We are also working towards achieving BREEAM certification for the completed construction of Studio City Phase 2 and City of Dreams Mediterranean, following the ‘Excellent’ ratings that we obtained for the design stage of both properties.”

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City of Dreams Fourth Quarter Results

For the quarter ended December 31, 2022, total operating revenues at City of Dreams were US$139.2 million, compared with US$244.8 million in the fourth quarter of 2021. City of Dreams generated negative Adjusted EBITDA of US$7.8 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$49.7 million in the fourth quarter of 2021. The year-over-year decline in Adjusted EBITDA was primarily a result of softer performance in the mass market table games segments, as well as non-gaming operations.

Rolling chip volume was US$850.4 million for the fourth quarter of 2022 versus US$3.12 billion in the fourth quarter of 2021. The rolling chip win rate was 4.47% in the fourth quarter of 2022 versus 1.68% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85%-3.15%.

Mass market table games drop decreased to US$292.2 million in the fourth quarter of 2022, compared with US$690.9 million in the fourth quarter of 2021. The mass market table games hold percentage was 29.2% in the fourth quarter of 2022, compared with 29.7% in the fourth quarter of 2021.

Gaming machine handle for the fourth quarter of 2022 was US$194.7 million, compared with US$421.6 million in the fourth quarter of 2021. The gaming machine win rate was 4.5% in the fourth quarter of 2022 versus 3.6% in the fourth quarter of 2021.

Total non-gaming revenue at City of Dreams in the fourth quarter of 2022 was US$30.5 million, compared with US$41.6 million in the fourth quarter of 2021.

Altira Macau Fourth Quarter Results

For the quarter ended December 31, 2022, total operating revenues at Altira Macau were US$9.0 million, compared with US$13.3 million in the fourth quarter of 2021. Altira Macau generated negative Adjusted EBITDA of US$9.5 million in the fourth quarter of 2022, compared with negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021.

In the mass market table games segment, drop was US$31.9 million in the fourth quarter of 2022 versus US$35.4 million in the fourth quarter of 2021. The mass market table games hold percentage was 20.6% in the fourth quarter of 2022, compared with 28.1% in the fourth quarter of 2021.

Gaming machine handle for the fourth quarter of 2022 was US$40.8 million, compared with US$65.8 million in the fourth quarter of 2021. The gaming machine win rate was 3.0% in the fourth quarter of 2022 versus 3.6% in the fourth quarter of 2021.

Total non-gaming revenue at Altira Macau in the fourth quarter of 2022 was US$2.1 million, compared with US$2.3 million in the fourth quarter of 2021.

Mocha and Other Fourth Quarter Results

Total operating revenues from Mocha and Other were US$19.5 million in the fourth quarter of 2022, compared with US$20.8 million in the fourth quarter of 2021. Mocha and Other generated Adjusted EBITDA of US$1.8 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$4.8 million in the fourth quarter of 2021.

Mass market table games drop was US$21.0 million in the fourth quarter of 2022 and the mass market table games hold percentage was 19.7% for the fourth quarter of 2022.

Gaming machine handle for the fourth quarter of 2022 was US$372.7 million, compared with US$474.6 million in the fourth quarter of 2021. The gaming machine win rate was 4.2% in the fourth quarter of 2022 versus 4.4% in the fourth quarter of 2021.

Studio City Fourth Quarter Results

For the quarter ended December 31, 2022, total operating revenues at Studio City were US$43.4 million, compared with US$88.2 million in the fourth quarter of 2021. Studio City generated negative Adjusted EBITDA of US$25.3 million in the fourth quarter of 2022, compared with negative Adjusted EBITDA of US$0.1 million in the fourth quarter of 2021. The year-over-year decline in Adjusted EBITDA was primarily a result of softer performance across all gaming segments and non-gaming operations.

Studio City’s rolling chip volume was US$251.4 million in the fourth quarter of 2022 versus US$474.4 million in the fourth quarter of 2021. The rolling chip win rate was 2.70% in the fourth quarter of 2022 versus 1.84% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85%-3.15%.

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Mass market table games drop decreased to US$113.5 million in the fourth quarter of 2022, compared with US$253.5 million in the fourth quarter of 2021. The mass market table games hold percentage was 27.1% in the fourth quarter of 2022, compared with 29.6% in the fourth quarter of 2021.

Gaming machine handle for the fourth quarter of 2022 was US$124.5 million, compared with US$262.4 million in the fourth quarter of 2021. The gaming machine win rate was 2.7% in the fourth quarter of 2022, compared with 2.8% in the fourth quarter of 2021.

Total non-gaming revenue at Studio City in the fourth quarter of 2022 was US$9.6 million, compared with US$17.7 million in the fourth quarter of 2021.

City of Dreams Manila Fourth Quarter Results

For the quarter ended December 31, 2022, total operating revenues at City of Dreams Manila were US$95.2 million, compared with US$83.9 million in the fourth quarter of 2021. City of Dreams Manila generated Adjusted EBITDA of US$23.6 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$34.6 million in the comparable period of 2021.

City of Dreams Manila’s rolling chip volume was US$940.7 million in the fourth quarter of 2022 versus US$206.3 million in the fourth quarter of 2021. The rolling chip win rate was 1.84% in the fourth quarter of 2022 versus 1.20% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$148.2 million in the fourth quarter of 2022, compared with US$113.2 million in the fourth quarter of 2021. The mass market table games hold percentage was 31.9% in the fourth quarter of 2022, compared with 35.6% in the fourth quarter of 2021.

Gaming machine handle for the fourth quarter of 2022 was US$1.02 billion, compared with US$815.1 million in the fourth quarter of 2021. The gaming machine win rate was 4.7% in the fourth quarter of 2022 versus 5.4% in the fourth quarter of 2021.

Total non-gaming revenue at City of Dreams Manila in the fourth quarter of 2022 was US$24.5 million, compared with US$26.5 million in the fourth quarter of 2021.

Cyprus Operations Fourth Quarter Results

The Company is licensed to operate a temporary casino, which is the first casino in the Republic of Cyprus, and four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

Total operating revenues at Cyprus Casinos for the quarter ended December 31, 2022 was US$28.7 million, compared with US$22.4 million in the fourth quarter of 2021. Cyprus Casinos generated Adjusted EBITDA of US$10.5 million in the fourth quarter of 2022, compared with Adjusted EBITDA of US$5.2 million in the fourth quarter of 2021.

Rolling chip volume was US$1.1 million in the fourth quarter of 2022, compared with US$1.3 million in the fourth quarter of 2021. The rolling chip win rate was 16.43% in the fourth quarter of 2022, compared with negative 1.92% in the fourth quarter of 2021. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$38.0 million in the fourth quarter of 2022, compared with US$30.5 million in the fourth quarter of 2021. The mass market table games hold percentage was 24.9% in the fourth quarter of 2022, compared with 20.1% in the fourth quarter of 2021.

Gaming machine handle for the fourth quarter of 2022 was US$392.4 million, compared with US$328.6 million in the fourth quarter of 2021. The gaming machine win rate was 5.0% in the fourth quarter of 2022 versus 5.1% in the fourth quarter of 2021.

Other Factors Affecting Earnings

Total net non-operating expenses for the fourth quarter of 2022 were US$93.9 million, which mainly included interest expenses of US$104.7 million, net of amounts capitalized, partially offset by interest income of US$9.4 million.

Depreciation and amortization costs of US$121.9 million were recorded in the fourth quarter of 2022 of which US$2.9 million related to the amortization expense for our gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.

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The negative Adjusted EBITDA for Studio City for the three months ended December 31, 2022 referred to above is US$9.1 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated March 1, 2023 (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 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, 2022 aggregated to US$1.99 billion, including US$175.7 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$8.41 billion at the end of the fourth quarter of 2022.

Available liquidity, including cash and undrawn revolving credit facilities, as of December 31, 2022, was US$2.06 billion.

Capital expenditures for the fourth quarter of 2022 were US$112.0 million, which primarily related to the construction projects at Studio City Phase 2 and City of Dreams Mediterranean.

Full Year Results

For the year ended December 31, 2022, Melco Resorts & Entertainment Limited reported total operating revenues of US$1.35 billion versus US$2.01 billion in the prior year. The decrease in total operating revenues was primarily attributable to travel restrictions in Macau and mainland China related to COVID-19 during the year as well as the government mandated temporary closure of our casinos in Macau in July which led to softer performance in the rolling chip and mass market table games segments as well as lower non-gaming revenues.

The operating loss for 2022 was US$743.1 million, compared with an operating loss of US$577.5 million for 2021.

Melco generated Adjusted Property EBITDA of US$0.6 million for the year ended December 31, 2022, compared with Adjusted Property EBITDA of US$235.1 million in 2021.

Net loss attributable to Melco Resorts & Entertainment Limited for 2022 was US$930.5 million, or US$2.01 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$811.8 million, or US$1.70 per ADS, for 2021. The net loss attributable to noncontrolling interests was US$166.6 million and US$144.7 million for 2022 and 2021, respectively, all of which were related to Studio City, City of Dreams Manila and the Cyprus Operations.

Recent Developments

Since January 8, 2023, travelers arriving in Macau from Mainland China, Hong Kong and Taiwan were no longer required to present negative nucleic acid tests which thereby contributed to a 233% increase in Macau’s gross gaming revenue from MOP3.5 billion in December 2022 to MOP11.6 billion in January 2023 according to data reported by the Gaming Inspection and Coordination Bureau of Macau. In addition, in Macau, from February 27, 2023, masks are not required in outdoor places. However, masks are still required on public transportation (except taxis) and in certain indoor areas, such as medical facilities and elderly homes. Requirement to wear masks has been waived in most private indoor areas by their operators or supervisory entities.

While quarantine-free travel within Greater China has resumed, the pace of recovery remains highly uncertain, and disruptions caused by the COVID-19 outbreak continue to have a material adverse impact on our operations, financial position and future prospects into the first quarter of 2023.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its fourth quarter 2022 financial results on Wednesday, March 1, 2023 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/BI4ecb1896c0e54d0780ee6459f8d58fd4

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

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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 continued impact of its consequences on our business, our industry and the global economy, (ii) risks associated with the newly adopted gaming law in Macau 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 Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. 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. 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.

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(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 is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (“Cyprus Casinos”). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease. 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

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Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands of U.S. dollars, except share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2022			2021			2022			2021
Operating revenues:
Casino	$	267,468		$	390,659		$	1,076,398		$	1,676,263
Rooms		27,275			44,666			116,552			157,501
Food and beverage		23,280			25,641			85,518			97,665
Entertainment, retail and other		19,065			19,642			71,509			80,927
Total operating revenues		337,088			480,608			1,349,977			2,012,356
Operating costs and expenses:
Casino		(227,248	)		(286,280	)		(912,839	)		(1,320,882	)
Rooms		(11,142	)		(12,625	)		(46,199	)		(49,895	)
Food and beverage		(20,909	)		(22,758	)		(82,000	)		(91,533	)
Entertainment, retail and other		(5,583	)		(6,355	)		(22,419	)		(29,463	)
General and administrative		(120,742	)		(100,006	)		(423,225	)		(426,407	)
Payments to the Philippine Parties		(2,016	)		(6,102	)		(28,894	)		(26,371	)
Pre-opening costs		(6,670	)		(1,383	)		(15,585	)		(4,157	)
Development costs		—			1,302			—			(30,677	)
Amortization of gaming subconcession		(2,853	)		(14,286	)		(32,785	)		(57,276	)
Amortization of land use rights		(5,672	)		(5,695	)		(22,662	)		(22,832	)
Depreciation and amortization		(113,350	)		(124,147	)		(466,492	)		(499,739	)
Property charges and other		(20,387	)		(6,638	)		(39,982	)		(30,575	)
Total operating costs and expenses		(536,572	)		(584,973	)		(2,093,082	)		(2,589,807	)
Operating loss		(199,484	)		(104,365	)		(743,105	)		(577,451	)
Non-operating income (expenses):
Interest income		9,433			1,457			26,458			6,618
Interest expenses, net of amounts capitalized		(104,667	)		(85,448	)		(376,722	)		(350,544	)
Other financing costs		(957	)		(1,080	)		(6,396	)		(11,033	)
Foreign exchange gains, net		1,047			1,516			3,904			4,566
Other income, net		1,217			710			3,930			3,082
Loss on extinguishment of debt		—			—			—			(28,817	)
Total non-operating expenses, net		(93,927	)		(82,845	)		(348,826	)		(376,128	)
Loss before income tax		(293,411	)		(187,210	)		(1,091,931	)		(953,579	)
Income tax expense		(618	)		(2,731	)		(5,236	)		(2,885	)
Net loss		(294,029	)		(189,941	)		(1,097,167	)		(956,464	)
Net loss attributable to noncontrolling interests		42,088			30,004			166,641			144,713
Net loss attributable to Melco Resorts & Entertainment Limited	$	(251,941	)	$	(159,937	)	$	(930,526	)	$	(811,751	)
Net loss attributable to Melco Resorts & Entertainment Limited per share:
Basic	$	(0.189	)	$	(0.112	)	$	(0.669	)	$	(0.566	)
Diluted	$	(0.189	)	$	(0.112	)	$	(0.669	)	$	(0.566	)
Net loss attributable to Melco Resorts & Entertainment Limited per ADS:
Basic	$	(0.566	)	$	(0.336	)	$	(2.007	)	$	(1.698	)
Diluted	$	(0.566	)	$	(0.336	)	$	(2.008	)	$	(1.698	)
Weighted average shares outstanding used in net loss attributable to Melco Resorts & Entertainment Limited per share calculation:
Basic		1,335,283,346			1,428,587,890			1,391,154,836			1,434,087,641
Diluted		1,335,283,346			1,428,587,890			1,391,154,836			1,434,087,641

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Melco Resorts & Entertainment Limited and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars, except share and per share data)

	December 31,			December 31,
	2022			2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,812,729		$	1,652,890
Restricted cash		50,992			285
Accounts receivable, net		55,992			54,491
Receivables from affiliated companies		630			384
Inventories		26,416			29,589
Prepaid expenses and other current assets		119,410			109,330
Assets held for sale		8,503			21,777
Total current assets		2,074,672			1,868,746
Property and equipment, net		5,870,905			5,910,684
Gaming subconcession, net		—			27,065
Intangible assets, net		43,610			51,547
Goodwill		81,606			81,721
Long-term prepayments, deposits and other assets		159,697			177,142
Receivables from an affiliated company		216,333			—
Restricted cash		124,736			140
Deferred tax assets, net		638			4,029
Operating lease right-of-use assets		58,715			68,034
Land use rights, net		670,872			694,582
Total assets	$	9,301,784		$	8,883,690
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	6,730		$	5,992
Accrued expenses and other current liabilities		809,305			935,483
Income tax payable		11,610			11,913
Operating lease liabilities, current		12,761			16,771
Finance lease liabilities, current		34,959			48,551
Current portion of long-term debt, net		322,500			128
Payables to affiliated companies		761			1,548
Liabilities related to assets held for sale		—			1,497
Total current liabilities		1,198,626			1,021,883
Long-term debt, net		8,090,008			6,559,854
Other long-term liabilities		33,712			30,520
Deferred tax liabilities, net		39,677			41,030
Operating lease liabilities, non-current		55,832			62,889
Finance lease liabilities, non-current		198,291			347,629
Total liabilities		9,616,146			8,063,805
(Deficit) equity:
Ordinary shares, par value $0.01; 7,300,000,000 shares authorized;  1,445,052,143 and 1,456,547,942 shares issued; 1,335,307,327 and 1,423,370,314 shares outstanding, respectively		14,451			14,565
Treasury shares, at cost; 109,744,816 and 33,177,628 shares, respectively		(241,750	)		(132,856	)
Additional paid-in capital		3,218,895			3,238,600
Accumulated other comprehensive losses		(111,969	)		(76,008	)
Accumulated losses		(3,729,952	)		(2,799,555	)
Total Melco Resorts & Entertainment Limited shareholders’ (deficit) equity		(850,325	)		244,746
Noncontrolling interests		535,963			575,139
Total (deficit) equity		(314,362	)		819,885	��
Total liabilities and (deficit) equity	$	9,301,784		$	8,883,690

8

Melco Resorts & Entertainment Limited and Subsidiaries

Reconciliation of Net Loss Attributable to Melco Resorts & Entertainment Limited to

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

(In thousands of U.S. dollars, except share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2022			2021			2022			2021
Net loss attributable to Melco Resorts & Entertainment Limited	$	(251,941	)	$	(159,937	)	$	(930,526	)	$	(811,751	)
Pre-opening costs		6,670			1,383			15,585			4,157
Development costs		—			(1,302	)		—			30,677
Property charges and other		20,387			6,638			39,982			30,575
Loss on extinguishment of debt		—			—			—			28,817
Income tax impact on adjustments		(412	)		2,144			(1,010	)		11
Noncontrolling interests impact on adjustments		(3,015	)		(1,284	)		(7,796	)		(17,469	)
Adjusted net loss attributable to Melco Resorts & Entertainment Limited	$	(228,311	)	$	(152,358	)	$	(883,765	)	$	(734,983	)
Adjusted net loss attributable to Melco Resorts & Entertainment Limited per share:
Basic	$	(0.171	)	$	(0.107	)	$	(0.635	)	$	(0.513	)
Diluted	$	(0.171	)	$	(0.107	)	$	(0.636	)	$	(0.513	)
Adjusted net loss attributable to Melco Resorts & Entertainment Limited per ADS:
Basic	$	(0.513	)	$	(0.320	)	$	(1.906	)	$	(1.538	)
Diluted	$	(0.513	)	$	(0.320	)	$	(1.908	)	$	(1.538	)
Weighted average shares outstanding used in adjusted net loss attributable to Melco Resorts & Entertainment Limited per share calculation:
Basic		1,335,283,346			1,428,587,890			1,391,154,836			1,434,087,641
Diluted		1,335,283,346			1,428,587,890			1,391,154,836			1,434,087,641

9

Melco Resorts & Entertainment Limited and Subsidiaries

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

(In thousands of U.S. dollars)

	Three Months Ended December 31, 2022
	Altira Macau			Mocha and Other (3)		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	)
	Three Months Ended December 31, 2021
	Altira Macau			Mocha		City of Dreams			Studio City			City of Dreams Manila			Cyprus Operations			Corporate and Other			Total
Operating (loss) income	$	(6,310	)	$	3,264	$	(23,644	)	$	(37,990	)	$	9,495		$	1,980		$	(51,160	)	$	(104,365	)
Payments to the Philippine Parties		—			—		—			—			6,102			—			—			6,102
Land rent to Belle Corporation		—			—		—			—			669			—			—			669
Pre-opening costs		—			—		—			245			—			1,138			—			1,383
Development costs		—			—		—			—			—			—			(1,302	)		(1,302	)
Depreciation and amortization		5,391			1,279		62,393			33,844			17,138			2,062			22,021			144,128
Share-based compensation		717			238		8,518			1,864			683			391			15,640			28,051
Property charges and other		70			1		2,400			1,901			513			(379	)		2,132			6,638
Adjusted EBITDA		(132	)		4,782		49,667			(136	)		34,600			5,192			(12,669	)		81,304
Corporate and Other expenses		—			—		—			—			—			—			12,669			12,669
Adjusted Property EBITDA	$	(132	)	$	4,782	$	49,667		$	(136	)	$	34,600		$	5,192		$	—		$	93,973

⁽³⁾  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

10

Melco Resorts & Entertainment Limited and Subsidiaries

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

(In thousands of U.S. dollars)

	Year Ended December 31, 2022
	Altira Macau			Mocha and Other (3)		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
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
	Year Ended December 31, 2021
	Altira Macau			Mocha		City of Dreams			Studio City			City of Dreams Manila			Cyprus Operations			Corporate and Other			Total
Operating (loss) income	$	(78,918	)	$	10,505	$	(75,668	)	$	(167,162	)	$	(18,808	)	$	(12,395	)	$	(235,005	)	$	(577,451	)
Payments to the Philippine Parties		—			—		—			—			26,371			—			—			26,371
Land rent to Belle Corporation		—			—		—			—			2,848			—			—			2,848
Pre-opening costs		—			—		195			984			—			2,978			—			4,157
Development costs		—			—		—			—			—			—			30,677			30,677
Depreciation and amortization		21,909			5,920		248,523			135,737			70,325			10,648			86,785			579,847
Share-based compensation		1,335			425		15,735			3,838			1,981			741			43,902			67,957
Property charges and other		1,700			204		13,169			6,113			6,245			(379	)		3,523			30,575
Adjusted EBITDA		(53,974	)		17,054		201,954			(20,490	)		88,962			1,593			(70,118	)		164,981
Corporate and Other expenses		—			—		—			—			—			—			70,118			70,118
Adjusted Property EBITDA	$	(53,974	)	$	17,054	$	201,954		$	(20,490	)	$	88,962		$	1,593		$	—		$	235,099

11

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 of U.S. dollars)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2022			2021			2022			2021
Net loss attributable to Melco Resorts & Entertainment Limited	$	(251,941	)	$	(159,937	)	$	(930,526	)	$	(811,751	)
Net loss attributable to noncontrolling interests		(42,088	)		(30,004	)		(166,641	)		(144,713	)
Net loss		(294,029	)		(189,941	)		(1,097,167	)		(956,464	)
Income tax expense		618			2,731			5,236			2,885
Interest and other non-operating expenses, net		93,927			82,845			348,826			376,128
Property charges and other		20,387			6,638			39,982			30,575
Share-based compensation		27,949			28,051			71,809			67,957
Depreciation and amortization		121,875			144,128			521,939			579,847
Development costs		—			(1,302	)		—			30,677
Pre-opening costs		6,670			1,383			15,585			4,157
Land rent to Belle Corporation		467			669			2,318			2,848
Payments to the Philippine Parties		2,016			6,102			28,894			26,371
Adjusted EBITDA		(20,120	)		81,304			(62,578	)		164,981
Corporate and Other expenses		13,343			12,669			63,147			70,118
Adjusted Property EBITDA	$	(6,777	)	$	93,973		$	569		$	235,099

12

Melco Resorts & Entertainment Limited and Subsidiaries

Supplemental Data Schedule

	Three Months Ended						Year Ended
	December 31,						December 31,
	2022			2021			2022			2021
Room Statistics(4):
Altira Macau
Average daily rate (5)	$	96		$	109		$	97		$	110
Occupancy per available room		49	%		40	%		42	%		48	%
Revenue per available room (6)	$	47		$	44		$	41		$	53
City of Dreams
Average daily rate (5)	$	211		$	210		$	205		$	205
Occupancy per available room		28	%		47	%		27	%		53	%
Revenue per available room (6)	$	59		$	99		$	56		$	109
Studio City
Average daily rate (5)	$	100		$	131		$	111		$	123
Occupancy per available room		32	%		39	%		28	%		51	%
Revenue per available room (6)	$	32		$	52		$	31		$	62
City of Dreams Manila
Average daily rate (5)	$	140		$	262		$	177		$	164
Occupancy per available room		96	%		92	%		95	%		76	%
Revenue per available room (6)	$	134		$	241		$	167		$	124
Other Information(7):
Altira Macau
Average number of table games		91			100			93			101
Average number of gaming machines		166			128			146			121
Table games win per unit per day (8)	$	780		$	1,084		$	737		$	1,912
Gaming machines win per unit per day (9)	$	81		$	199		$	116		$	201
Mocha and Other(3)
Average number of table games		25			—			25			—
Average number of gaming machines		897			906			935			813
Table games win per unit per day (8)	$	1,806		$	—		$	1,792		$	—
Gaming machines win per unit per day (9)	$	188		$	250		$	209		$	287
City of Dreams
Average number of table games		442			509			447			511
Average number of gaming machines		675			676			677			572
Table games win per unit per day (8)	$	3,036		$	5,500		$	3,361		$	6,690
Gaming machines win per unit per day (9)	$	141		$	246		$	140		$	282
Studio City
Average number of table games		277			288			277			290
Average number of gaming machines		671			710			700			645
Table games win per unit per day (8)	$	1,477		$	3,162		$	1,562		$	3,306
Gaming machines win per unit per day (9)	$	54		$	113		$	75		$	129
City of Dreams Manila
Average number of table games		261			309			274			301
Average number of gaming machines		2,218			2,373			2,266			2,338
Table games win per unit per day (8)	$	2,687		$	1,504		$	2,496		$	1,789
Gaming machines win per unit per day (9)	$	236		$	206		$	232		$	195
Cyprus Operations
Average number of table games		35			32			35			32
Average number of gaming machines		452			440			454			440
Table games win per unit per day (8)	$	2,978		$	2,050		$	2,190		$	1,927
Gaming machines win per unit per day (9)	$	472		$	411		$	394		$	388

⁽⁴⁾  Room statistics exclude rooms that were temporarily closed or provided to staff members due to the COVID-19 outbreak

⁽⁵⁾  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

⁽⁶⁾  Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available

⁽⁷⁾  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

⁽⁸⁾  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

⁽⁹⁾  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