MLCO - Earnings call 4 2023 | Melco Resorts & Entertainment Limited

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Operator

Ladies and gentlemen, thank you for participating in the Fourth Quarter 2023 Earnings Conference Call of Melco Resorts & Entertainment Limited. [Operator Instructions] Today's conference is being recorded.

I would now like to turn the call over to Ms. Jeanny Kim, Senior Vice President, Group Treasurer of Melco Resorts & Entertainment Limited.

Jeanny Kim

Thank you, operator, and thank you all for joining us today for our fourth quarter 2023 earnings call.

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

started, made harbor get contain laws. we please today's that Before discussion forward-looking statements of under provision safe the federal securities note may

differ results anticipated our may results. Our from actual

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

website. posted Finally, please supplementary our our note Relations earnings slides on Investor are that

that, over With it Ho. turn Mr. Lawrence I'll to

Yau Ho

Jeanny, and of of you, Sisk, aware thank Thank us you COO today. you that for Many Macau our be joining has resigned. may already David

the We involved properties. a will to forward operations steer the search process conducting In I thorough business day-to-day Macau high-caliber Evan be will to interim, identify in of and actively individual a and our our appoint Macau. be in

focus move leading all market in forward, we Melco and that As our innovation is our to the through collaborations. of is aspects ensure business

adding this appointments and mind, beverage. With in retail, and food to we're gaming our operations, in with hotels new team leadership also

additions the these and new secure competitive stronger changes a team to us expect leadership to a management team more future. will We strengthen and as

of to demonstrate was close has to Turning back our macroeconomic from New holiday period extraordinary Macau exceeded Chinese visitors Year number results. China Macau resilience during growth XXXX potential to to and and despite Visitation its continues XXXX. shown outlook. uncertain China's this the month's levels

the Mediterranean City the opening higher Our post-pandemic and a XXXX new was mass X. CNY properties, levels. year during the holiday period GGR Macau than Phase City was and meaningfully EBITDA and Theater Dreams property recovery Studio of of XXXX

another second X-bedroom floor a a in The that product, had gaming not reaching high-limit and this of City City new villas. with Tower ADT X, base the of Among attracting that ongoing XXXX our offers had And projects, December help been gaming Studio It Epic with Studio at opened us. City is Studio are area Studio be the residency to generated to driving luxury is customer is Hotel at start not Tower. by Phase X Epic the for and at various concert available and The suites mass been demand hotel customer GGR. our property events of in daily at set previously. on City high-end base is before which record the the seen exciting at levels year Studio City levels and the scheduled to March. slot patrons series

of Dancing City back we construction by started the Studio the Cineplex We've at Phase Water House show, bring award-winning the of of year. end and aim the X, our to

on start customers. our offering the We mass renovations luxury bring new premium Countdown a high-end to hotel Hotel will also to

In the will generate by and City Dreams Philippines, significant it this long is Mediterranean earnings with how impacted in conflict and City be of market solid to Manila share table uncertain gains in games slots. continues continues of last. Israel to Cyprus in the Dreams mass

so demand of this seen far However, we improving have some signs year.

through I'll to So that, some Geoff with call turn numbers. to over the go the of

Geoffrey Davis

Thank you, Lawrence.

COD came had group-wide a $XXX a approximately property fourth impact the was Manila group-wide of EBITDA property for million, Luck-adjusted of for quarter win rate quarter Our in favorable adjusted COD fourth earnings million. posted XXXX the $XX a XXXX the at EBITDA positive in had in win approximately Studio Macau, of of supplementary on our Investor these negative adjustments can Cyprus million, be City while rates Relations found slides around Details impact of at on $X website. million. unfavorable $XXX

due line quarter per XXXX. early which per million in full Studio approximately was with [ day in third quarter to in at $X.X day increased W of Macau of primarily City, in September (sic) fourth the the OpEx million from quarter, impact the the XXXX XXXX opened to guidance. Macau $X.X This approximately ]

sheet. We million $XXX into Studio tender. revolving on reduced of at reduction our $XXX On will by City continue $XXX of via to a total bonds million Turning XXXX. of the and basis, quarter a repaid and of course during another XXXX, balance we XXXX our repurchased to of the credit fourth million over cash we a facilities focus debt consolidated debt

As at around consolidated and restricted as accounted issued $XXX concession-related hand. to Of Macau for had million. the $X.X Philippines collateral of cash XX, billion operations Melco excluding XXXX, Cyprus government. for Studio million approximately of required we around on December guarantees the was City, this, $XXX its

Another notable 'XX, movement Altira repositioning by is in with VIP approximately the XXXX. to has faced Altira of work we in the in of change challenges Altira impairment XQ and the our some and million. 'XX balance sheet through in the improve in property. segment, to expect continue broke XQ performance even the $XXX we

some give $XXX Corporate first nonoperating million. million line consolidated net upcoming interest depreciation $XXX to to $XX you we'll expected items of million. Total for the we is XXXX. amortization quarter is be come and approximately expense to expected to approximately approximately and do, on $XXX at million As million $XXX expense guidance expense expected is to normally be in

and of concession in and million gaming to and City -- Macau government fees finance $X to Cyprus lease relation million of interest payable Dreams This gaming includes liability Manila. fees payable relating approximately relating finance $X license the interest of to around the

Operator, our back concludes you Q&A. to That for the remarks. prepared

Operator

question first Choi from line Your Instructions] George [Operator Citi. of from the comes

George Choi

I have if a I of couple questions may.

in you plan have do priorities market share? Firstly, your lost fair all capital I a assumption? regain please on capital just That's share allocation. the to to I question And any what are? is have. my dividend chance second wondering XXXX. Would what there was us guys you numbers your that are Is of suggesting guys remind you allocation market

Yau Ho

George, right. Lawrence. it's All

our reason well. change So I the that's share clearly, XXXX, think as I for think, management in lost we of had and part

glad operating COVID did guess, us of survive. to I I job post-COVID, bone trying of our think in we the New business. -- David we how in substantially deep that New too so And a remarks, levels. I'm cut we've post-COVID, had our and strong the above Year, said continued XXXX a Year I to conduct terms prepared in expenditure as far. during we're we've But for great Chinese And very terms Chinese to

Our over was XX% Year. up New XXXX mass GGR from Chinese

in moving are direction recent things the management So the even without right changes.

the Dreams of premium over years So City XX ago. segment mass invented

we is some to as reclaim us for a the goal appointments team in improve recent to work the mass the and to think the of so sector. new offering. order quality really the crown I premium to do need together that, with of our and And And

post-COVID, of I think, cut looking here. frankly, out did way around, too offering we much really our

share basis. some from I think why that's we that lost

think I addressed. that So being is

have long for in times done time. a and a it position the we've past, premium mass We the very enjoyed million having in pull

to this really think our I Geoff is your think capital I'll year, to and goal the guess that. reclaim second were elaborate. well, #X questions allocation, So third I let goal -- more I

Our continues #X goal reduction. to be debt

course, the think and So Geoff I of our can... that's some we our of maintenance have maybe stuff CapEx main focus,

Geoffrey Davis

same mandate is time, a expand But from is debt reduction. debt the So the allocation clearly, laser priority At the to standpoint. capital will the opportunities for the be key portfolio. capital-light focus we #X are looking on reduction

Yau Ho

none has major other any that because the think, frankly, have in than, think used been -- operators with nobody well, any land in up. projects all line I as of Galaxy Macau I the CapEx perhaps, Well, really major, has

there we product that we'll mine can I think that improve look any are projects on at to areas those, wouldn't the CapEx for say us, the offering, continue can major improve as I we our horizon. but

year regards public always -- lowest knowledge to our of amount. that amount. with think it's I'm the fulfilled full that one our to government only that investment, I tender out we And we had think X, Macau And I pleased the we've were say had commitment, the last

I forward, think below with even the going additional we're everybody so comfortably XX% addition, else. And

Operator

Your of from Chinchilla Deutsche comes line Bank. from next question Ricardo the

Luis Chinchilla

to I services on you enhance OpEx you hoping your forward, your guys from that the going of some your comment recent for expectations could are comments, going guests. was probably given

So how OpEx thinking we year? balance for be of the should about the

Geoffrey Davis

thank the the take It's question. Geoff. question, I'll and you for

at for by end considering. being about with of the XXX,XXX a of increase of going OpEx Dancing the forward, quarter, In Water year, that day. had mentioned in about we're House the the know, the relation by per of you highlighted million opening day. that's some the we to daily fourth enhancements And as we our likely that came Lawrence So $X.X to that some measures customer-centric

have I but XXX,XXX XXXX, the think not in day neighborhood enhancements. somewhere course over of immediately, another of of per we the

Luis Chinchilla

real mass ahead into business? a know bit slightly highlighted data If follow up tiers up tiers that additional doing there guys know levels, better of premium Perfect. performance may you that Golden your classify an that I Is back recent rest higher? I a perhaps tier Week. mass is with it. some your within follow in should the or premium pre-pandemic make customers Got up different of How Are think little ones? that to you the they about and we your encouraging the mass regarding premium you question. --

Yau Ho

Ricardo.

recovery mass. the been when has I So broad-based think premium refer pretty to you

infrastructure yet. or from rising, infrastructure visitation back though course, totally is Of China isn't

various across regards So or affecting general the with But more I it's of of mass, the have. if the mass sectors that in we pretty that's terms anything, board mass. think growing premium to

So or say indexing. indexing X is I X sectors or is over under there wouldn't that

Operator

DeCree comes line Your next John the from of from question CBRE.

John DeCree

or give missed XXXX? CapEx start Geoff. Maybe it, I for -- with if expectations item housekeeping just gave you Did I could the for I apologize. to you didn't

Geoffrey Davis

Sure.

You didn't miss it.

looking $XXX million. we're million at CapEx XXXX, $XXX approximately For to of

John DeCree

earlier UAE global in operators some some comments And of guess, bit, maybe the thinking elaborate at, looking you little now. bit the the portfolio. your then if you made the peers kind can right an And had topical markets of of on around context opportunities light Curious little Great. that? of question in I some pursuing some a a expand is casino revisit assets are very to particularly that we to larger

kind curious on anything externally? things So if at you're you that other or there's can elaborate markets looking of

Yau Ho

it's bit a I early Well, well. as think

So out given our I COVID of think ]. climbing we're still -- our hole [

think I I we're a take everybody to announced. the Japan usually tires the Thailand, But be think it's ready projects, nothing, process, or else. think, the potential we're UAE I like like terms but from we in process. some But longer-term the -- these projects learn multiyear kicking bigger that's looking at smaller of things as like

Operator

the of from Bank comes of question from next Karl Your Choi line America.

Karl Choi

Two questions.

First, to can sort second, Could you're you the some elaborate -- -- appointments of And hoping question apart of the environment. bit KPIs of bit what mentioned. obviously share, on bringing GGR from you're coming can a competitive you key you trying that are that talk that market the of back a new little you're just this the people sort achieve that metrics, about operations new in year? the

was I mentioned think was little that elevated, call, to relation on that premium last in rate the a mass bit perhaps recovered a little the has faster. reinvestment fact bit it

of latest portfolio some So of -- rate? our And in what's rolling your reinvestment do tables. terms peers or curious, any folks your also are to out are the plan RFID into Is as just well? of your so there get some

Yau Ho

think Karl, tables Evan take to RFID add and maybe next some month. I coming are I'll wants color. it

to So we're quite be have going it's them. again, process. a to rolling excited But

the the market first of getting full competitive. is we're going of RFID learning make tables. I be the of I I very in to to these to see There's for think think a them potential we're excited reinvestment, terms but use curve think And time.

I you competitors' results it. our as see can I think think you look if at well,

-- innovator as new Melco of guest-centric. for So the product do and being us, of was the the offerings in part we is and plan always level I think terms how service

So spend do purely wisely, giving it's just rather things reinvestment the about than away. how we

look that's food all that that -- are think guest-facing the in we you and really strategic appointments about. unit. I care if experiences hotel These retail. in We're adding have, our we So are at beverage. and strategic I we reestablishing marketing analytics and guest-centric, adding think We're

we -- solution will it's So for us a in great I that the past. been -- think

in continue I if to future. work to... want the know I Evan think will don't

Evan Winkler

on terms on Sure. and Lawrence we're really our how we're the at get floor, focused really gaming our To layouts. greater where articulated, operations allocating efficiency senior X what do how brought we're in we we driving in hires. of spend resource, how looking continue there, our Alidad floor is

to that at et improve our at our looking we're improve so but here And as just and again also efficiency of not cetera. some we -- allocations player GGR, look reinvestment,

bench VP then a that market on picking look to get And just make of SC an probably luxury as at at terms to retail all from across feel that someone and COD got the we brands in experience, COD today, these a who's footprint. those the offering. evolve retail in customer with some of to leading Hotel front, a that but area in at brought player luxury It's we enhance to in tomorrow both and continue bringing help We On as us the SC. the we up retail fronts again of strength of deep areas. point a the OpEx are not likely improvement. enhance obviously, sure F&B is at experience luxury focus have guest relationships someone that in That that thing, here to is going we key long-term at some our similar and a COD is we once future

Lawrence reoriented and doing force more around the areas our articulated, sales our that focus so a in that In also journey. have And well. addition, customer experience under we've we premium point centralized as we're central customer as

that's going along how a resources But way, make we we're sure the it to that of And regain in so from of efficient and efforts. are think sure category. our we've innovating making the top way approach in the to allocating market being those back is belief that kind to here us customer-centric premium is share. leading terms is across in we're that want the reoriented we that The view help bottom, the to doing obviously, again, to and I

Operator

question from the JPMorgan. line next of Greff Joe from Your comes

Joseph Greff

relation I strong percentage You in balance a EBITDA in market obviously talk Chinese New as the think or or outside you did. as balance undoubtedly you Year's, a on but period? of some Chinese about talked the been February performed don't maybe encouraging. day per outside Year Can -- well strong and New you Chinese others have of of which the talk did, you Year, in GGR in you about as missed as a maybe how and if -- of can about metric performance you is Can your XXXX about what's January I talk views to New it,

Yau Ho

people massive market March will the that this start million felt with and not and -- addition EBITDA. new the cities that important we XX of the much disposable I X was time that on Xi'an premium to Joe, the it has focused change visitors more too actually I that. were rate And the was share. more does fluctuate are think that do so surprised win is high fluctuate and seriously losing But never was even something really that's to accepting clearly, was I X. month-to-month. affects really Qingdao X Chinese our direct think us results make VIP, wanted It nobody been with that on I reason cared Both case been we income. importantly, And over really we line But would cities the think we a about. management the top share month-to-month, about I think at

individual our traveler that. hasn't So the growth. think years. doing, that I'm IVS don't I I able forward we're in XX, of going think been last new to And actually really we capture guest-centric should also, any a there the the XX with and about that lot forget, be And excited cities with restructuring

anything, things if strong So sign this very of come. to a is

Joseph Greff

person be search presuming and then that's right could whether external when it's Great. think but will do an have helpful, an you'll external be to -- David, now That's you search up that's person, that I'm And onboard? Lawrence. the complete replace when underway you'll somebody

Yau Ho

for restructuring, new to keep I and the us with busy months. going probably of additions us, Well, think the that's couple the for next

much both that more Evan and involved time. I think I are be to going during actively

I to right think the it's important we find want that candidate.

on think, next guest of the what really we think were all extraordinary forward, and us candidate, Going before, we luxury the -- the follow and great DNA great years I what was of made which I David. But X-year experiences. amazing, run had focused a Melco needs to with

Operator

There are back like further for questions. no Kim remarks. closing would to Jeanny to hand I

Jeanny Kim

you forward call quarter. look today. Thank you, thank Thank We you to you. operator, for again and speaking in next our with participating

Operator

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

disconnect. now may You

Melco Resorts & Entertainment Limited (MLCO) 29 Feb 242023 Q4 Earnings call transcript