MLCO - Earnings call transcript Q2 2022 | Melco Resorts & Entertainment Limited

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Operator

Ladies and gentlemen, thank you for participating in the Second Quarter 2022 Earnings Conference Call of Melco Resorts & Entertainment Limited. At this time, all participants are in a listen-only mode. After the call, we will conduct the question-and-answer session. Today's conference is being recorded. I would now like to turn the call over to Ms. President, of Vice Entertainment Resorts Senior Limited. Kim, Group Melco Treasurer & Jeanny

Jeanny Kim

and for you for you, thank Thank operator, everybody quarter earnings our XXXX joining call. second today us

Winkler; Manila and are Geoff Lawrence On Cyprus. Property the Macau, Davis, call Evan in Presidents and Ho, our

made Securities get statements Laws. please contain started, Harbor Safe we that today's the Before may provisions discussion note forward-looking under of Federal

differ results could from actual results. our Our anticipated

most these comparable discuss non-GAAP measures. definition measures, In included to of the the financial addition, release. may we in GAAP and A are measures reconciliation earnings

posted Finally, our I'll our please over note supplementary that, the turn Relations earnings to that, slides With are Lawrence Ho. on website. Mr. call Investor now

Lawrence Ho

and appreciate handling expeditious of heavily Jeanny. the publication smooth for that, the the casino and a pandemic, recent pandemic without for it law saying COVID of continue once for to It across the the and set through very our the you, governments new foundation the our remainder have the in The We of restrictions second a priority health and and China transition the gaming goes with tender. Macau clear of our concession requirements the gaming quick requirements by tender XXXX the provide new the Throughout impacted colleagues awarded. much and June, the new very law outbreak. publication Macau. is been direction year, and highest imposed the for the Thank safety were and Mainland ensuring results quarter be of important,

economy. March Manila government's have Macau we since with Dreams, volumes the been the and Macau, develop with at X. XXX% improving towards in levels. In and recovering been committed its has our have been Macau in facing contrast pre-COVID further to we capacity businesses the to Cyprus Macau We gradually are of challenges, and City vision aligned Philippines operating to are

international while quickly, recovered business visitation Our domestic continues ramp-up. fairly to

normal. saw We lifted further pickup COVID-related also a volumes Cyprus in restrictions as Asia and returns growth see with to travel around a relaxation are restrictions. profitability expect to and travel and

project and the experienced early progress, dates call, of of recent to I some our completion due the the in for At contractor, point as was able Mediterranean, that open some subject in have not to this our earnings to we achieve to first encountered difficulties XQ approvals. expect various regulatory In City has of construction delays quarter had who the aspects pre-agreed based project. with resource terms in of Dreams struggled mentioned time to XXXX of on we we've

in to However, anticipate the is two time to open fluid the the at turn closely the we this a progressing go of beginning appropriate opening, phasing expedite process. numbers. Geoff second look to construction determine to and call continue over be Studio quarter the remains The With the through markets well. of XXXX. ways of to currently the I City some We'll and situation monitoring to phase that,

Geoff Davis

EBITDA of COD at found Details property negative posted EBITDA while Relations group-wide at Macau In earnings in EBITDA on at and negatively of by of approximately win property win in group-wide website. An VIP million. came around million. Investor $X XXXX, positively supplementary affected rates by favorable the $XX our million, Manila adjustments slides around the these impacted we VIP $X million. quarter COD Studio be Thanks, $XX Lawrence. EBITDA unfavorable reported rate second Luck-adjusted negative City can

XQ million XXXX, $X was pre-COVID day. put day OpEx Macau million in per was OpEx day, perspective, represents declines approximately in XXXX. million sequential which million for XQ and day XXXX, per Our per $X.X this XQ from per To $X.X $X.X in in

containment cost environment. on focused remain teams this Our operating in challenging

had of we hand. XXXX consolidated XX, cash billion $X.X As on of approximately June

including of end $X.X the Our second billion. quarter and revolving available was the liquidity, undrawn at facilities credit cash

covenant contain conditions on had XXXX. We the facilities until To of the debt extension $X.X operations the capital of provide end structure, XXXX. and million customary City secured more June recently had previously credit until revolving and of Melco billion and obtained Our of these clarity these of a Philippines we an end waivers XXXX. our around $XXX Studio at its excluding Cyprus financial financial cash March the waiver covenants of at gross on end

approximately interest concludes expense million finance relating is and which to the is $XXX back to That do, interest million approximately of the million of Q&A. is to third consolidated approximately you to prepared Operator Dreams $XX $XX $XX guidance City lease our be some on includes we'll Manila $XX XXXX. to expense items and to expected line quarter give of upcoming come expected interest. for million, expense non-operating As expected normally $XX million million. net million for capitalized be remarks. around Corporate we to $X at depreciation amortization and of Total in

Operator

from [Operator Instructions] JPMorgan. comes question Our first line with Greff of Joe the

is open. Your line

Joe Greff

and morning everybody. Hello, Good Good afternoon.

E&Y I for was August that And steps, much next does pretty One, XX? minutes the the from Have talk hired that -- reference delisting to I operating in or or is part completely have is Singapore then one this are risk, multi-step it extent hit if Can is hiring the the finality XX Singapore on quick Kong. you a you believe this effective what And questions guess, that? other of it process? what And process? two question. E&Y mitigate about I you. E&Y you replacing heard ago Just XX that and that SEC minutes Hong -- was

Lawrence Ho

into Hey, you Sure. go of do that details want Geoff, to one? Joe. Hi,

Geoff Davis

Sure.

of while still in -- suitable to Cyprus, there have feasible. our risk. as to Hong political and finance connectivity broader are to still shared mind building proximity our and in employees States moved base, recently audit office out in Singapore office Singapore the more for had especially, service to between be more our a So as know there are a -- there we to We've Macau. Singapore team in we also a our Philippines part order effort business diversify minimize there keeping moved we that is operations. to our based the some the is Kong and locations solution still And that discussion possibility an ongoing China offers that is and United operations having as you good and

the either. But not was audit we've not felt Singapore So the to not in your appropriate know just multistep HFCAA. made some it's you Singapore it the covering have list function. that And as how and to We from does the locate direct question of of given heard Joe, on we changes part process a SEC. finance appear in the we're

Joe Greff

earlier rate just would that’s at of a and note And Great. per Thank talk about the Thanks. to-date maybe about sense Macau, think July OpEx that -- for July what you obviously in date, that Geoff. on to or and has be that burn and the incremental pretty I to for in and been maybe get everybody you OpEx me. all what helpful? per leverage Geoff Macau EBITDA August exposure day in day where And it's Can challenging day but you that operating per talk talked it's maybe was or about been you can a understands, historically. XQ look

Geoff Davis

we below we think level the second quarter. in what much detail, that Without off Sure. is OpEx starting into do XQ versus of daily the posted too getting

quarter. Some had temporary. XQ balance do But think in that of the lower second be that to that chance we bit the has is we than on a million the $X.X

Joe Greff

revenue dependent, more that in of or is And revenue isolation is performance? that

Geoff Davis

would as and In associated extent that. the of about that that up know but be isolation, course, additional we've with before some was meaningfully you there costs to talked revenue as would ramp be to

Joe Greff

absolute. Yeah,

Thank guys. you Okay, great.

Geoff Davis

Thanks.

Operator

comes line Praveen, of is Morgan with from now question next open. the Our Choudhary Praveen line your Stanley.

Praveen Choudhary

Thank you. for my taking for questions Two me. question. Thanks

think delisting ADR is not the had you on, second when Hong in XX% Macau And management, us could are was Macau? the or terms And could first Do back we can itself? of the XXXX can it's related revenue auditor was we normal. to it Kong wait solve about even proactively China the relisting, are expectation to dual come things of in to proactive related we -- a listing progress in get for be or kind you working some this year? great. in was some understand is from closed we to part go with like, the XQ change visitation pipeline that The your would other good And solution. coming Thank back May if question Kong? problem I solution -- would Lawrence solve for to Is back one that you yet But month thinking you. number, and seeing are they revenue from sometime of situation. just I very Hong that perspective, to together revenue your was mass XX%, US, up the the

Lawrence Ho

Sure. second has the can to has Hey, question one why if David, don't to And then if to take anything Praveen, Geoff first anything and see first the the I one. see he add add.

the dialogue of of and the it have Resorts in So listed listing with in we investors XX costs listing. Melco because the Kong potentially and last the And know, We've as over into years two been analysts terms saving the Hong with associated were Exchange. on we delisted, Stock ago. there for years we elsewhere, looked have cost

had on process, Kong And Exchange so a simple working it Stock assumed that with but that. we're we the very was Hong still

certainly of one So solutions. that's the potential

list. as not technically China Hong think Geoff Kong is mentioned, on I Singapore the

But else. that if still to also maybe do solution. where needed So we're have we it. a comfortable solves And something is political we pretty there Maybe are. time we

to we're anything Geoff add? is comfortable I you want on know point. that So there don't quite

Geoff Davis

No, Lawrence.

Thank covered I think you it. you.

Lawrence Ho

at Okay. going one, two two exactly, it. don't coming out a ago a hopeful given we're right was we October improvement, weeks, it in know that a been I month great to it other of in thankfully in catalysts this in is has Congress baby be think May back And to going throughout summer stressful signs. second XXth. in But last seen Party and looking we're was more XXXX. moving slowly maybe And overall, month I course, then can Golden other October the good we're the get May direction. and progressive Communist David, the We bit the color. And see Week course was I give and even a Macau have the think steps. I XXXX just October to of months of everybody I June think think on to gradually is and outbreak

David Sisk

Sure Praveen.

quite think significant impact as a fast these through go COVID -- Unfortunately, happens back things things I the of we it look that obviously these happens. has we on one when it as close as upgrades you doesn't So, visas. unfortunately the down, COVID bounce when

as feeling said visa a to Lawrence us a of gradual it's across key and this. Macau. come So it's comfortable out let China to people is But -- the for climb slow

said, it Lawrence slow think through As I to be expecting fairly we're September.

actually again, were by hopefully to where going the to there October that to hopefully time it's and we process really very but into May through As bigger end But slow next into start time. get to unfortunately we'll start back we at get quarter start it's Congress deeper the pace into period, a we year we I and going it to that the to of Golden think we'll Party the seeing on hopefully the just back some XXXX. improve, of be we'll that but hopefully fourth National we're in out And that, more as of point day get and a seeing then Week just on get your improvement. meetings depends coming take maybe it

Praveen Choudhary

Geoff. many Thanks Thanks thanks. Good Lawrence. Yes, Thanks David. luck.

David Sisk

Praveen. Thanks

Operator

your next line open. from of now George, Choi Instructions] George question with [Operator comes Our is Citi. the line

George Choi

Thank taking my question. you for

it City. focus Just longer from have XXX.HK And with guess term Studio Lawrence, I'm plans structure? a do your City me. any be on out is, my Studio clarify and or us question about And not confusions a on there you is couple this asking seems would specific I whether kindly to corporate a question simplify you some there satellite this casino to please? second still for the

Lawrence Ho

George. Sure

so last looking time, digging the think really point continuously with it's operators hole the our But not corporate is the think better have And levels five position other out on X George three City, been I is for focus gone years Studio by are Macau hand last But the one do. of various at if terms and there in that the not. I crystal key think actually debts in think Studio there it's that us. it's confusion to everything that been structures various -- we'll And And together years. entity we're really the in at Melco a to think consider thing it's the has on are easiest to of pretty awful. we is owned table. that I majority various and X.X, clear I ourselves Melco, any current I improve the Resorts issue, is once since on was because clear very

George Choi

you Thank very good That's very Thank you. color. much.

Lawrence Ho

George. Thanks,

Operator

Okay. That today's question-and-answer to back remarks. concludes the to closing like session. Kim turn I'd for call Jeanny

Geoff Davis

I more question in one operator, think we've queue. Actually, got the

Operator

Chinchilla line one from have comes question. do We Deutsche of Ricardo the more This question with Bank.

Your line open. is

Ricardo Chinchilla

inflation in Studio needs question. increase you the price much And I wondering Hey, provide for current seen if was at update CapEx guys. budget the remaining? could Thanks how have with is you and an an the on City. taking

Lawrence Ho

Hey, Lawrence. Ricardo, it's

and extremely of Geoff But construction we've COVID City Studio progressed out of probably with had all one restrictions. well. can has David ever the projects Phase this maybe smoothest even the of It's supplement. X So all probably

and to terms done. and or together over with couple of think State pass years David because terms that. rather the past project to of of Construction I'll really to numbers the in good maybe we that think have the increase Geoff team an supply about think in we construction I that's than But the reduced Kevin chain causing budget, budget, budget, or the inflation job have -- And talk In budget. the China of I I have reduced

Geoff Davis

remaining of the this Phase X million. in absolutely CapEx XXX Sure. due And This about The right. is second of year. majority that's Studio Geoff. will is on City AUD that's Significant be half that

at any everything the of time the anticipate the project. virtually for Our has the this shock, fit as don't out. majority declined And of procured construction course and has overall budget we construction over vast both inflation been the

Ricardo Chinchilla

Thank Perfect. you. I That’s had. all

Operator

closing further no to I'd this seeing back at it questions time. remarks. in for to Kim queue We're turn like Jeanny

Jeanny Kim

participating you, quarter. again Thank with you and forward Thank everybody you. we call in for look next to today speaking our conference

Operator

today's conference you participating. Thank This call. for concludes

may disconnect. You now

Melco Resorts & Entertainment Limited (MLCO) 19 Aug 222022 Q2 Earnings call transcript