Melco Resorts And Entmnt Stock Price, News & Analysis

Melco Resorts & Entertainment Limited (Nasdaq: MLCO) is a developer, owner, and operator of integrated resort facilities in Asia and Europe. According to the company, its business centers on large-scale integrated resorts that combine casino gaming with non-gaming amenities. Melco’s operations span Macau, the Philippines, Cyprus and, through new projects, Sri Lanka, positioning the group as an international participant in the gaming and entertainment sector.

Core business and geographic footprint

The company describes itself as operating integrated resorts in Asia and Europe, with a portfolio that includes multiple properties in Macau, an integrated resort in the Philippines, and an integrated resort with satellite casinos in Cyprus. Melco also reports casino operations and management services related to City of Dreams Sri Lanka. Its American depositary shares are listed on the Nasdaq Global Select Market under the symbol MLCO.

In Macau, Melco operates City of Dreams in Cotai and Altira Macau in Taipa, as well as Studio City, a cinematically themed integrated resort in Cotai. The company’s business in Macau also includes the Grand Dragon Casino and Mocha Clubs, which it identifies as the largest non-casino-based operator of electronic gaming machines in Macau. Melco has announced that Grand Dragon Casino and several Mocha Clubs will cease operations before the end of 2025, with gaming tables and electronic gaming machines to be reallocated to other company properties in Macau, and with certain Mocha Clubs expected to continue operations subject to regulatory approvals.

Outside Macau, Melco operates and manages City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila in the Philippines. In Europe, the company operates City of Dreams Mediterranean, an integrated resort in Limassol in the Republic of Cyprus, together with licensed satellite casinos in other cities in Cyprus. The company also reports casino operations at City of Dreams Sri Lanka and management services to the Nüwa hotel at City of Dreams Sri Lanka.

Integrated resort operations and segments

Melco’s reported operating results are organized by major properties and related businesses. The company discloses operating revenues and Adjusted EBITDA for:

• City of Dreams (Macau) – An integrated resort where results include rolling chip volume, mass market table games drop, gaming machine handle, and non-gaming revenue.
• Studio City (Macau) – A cinematically themed integrated resort in Cotai, with a focus that the company has repositioned toward premium mass and mass operations, while VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024.
• Altira Macau – An integrated resort in Taipa, Macau, with reported mass market table games and gaming machine activity, along with non-gaming revenue.
• Mocha and Other – This segment includes Mocha Clubs and related operations, which the company identifies as non-casino-based electronic gaming machine venues. Melco has announced plans to cease operations at Grand Dragon Casino and several Mocha Clubs, reassigning employees to other Macau properties and reallocating gaming equipment.
• City of Dreams Manila – An integrated resort in Manila, with reported rolling chip volume, mass market table games drop, gaming machine handle, and non-gaming revenue.
• City of Dreams Mediterranean and Other (Cyprus) – Operations include City of Dreams Mediterranean and three satellite casinos in Cyprus, with disclosures on rolling chip volume, mass market table games drop, gaming machine handle, and non-gaming revenue.
• Other Operations – This category includes casino operations at City of Dreams Sri Lanka and management services for the Nüwa hotel at City of Dreams Sri Lanka.

Across these segments, Melco reports both gaming and non-gaming revenues, including table games, gaming machines, and non-gaming activities such as hotel, food and beverage, and other resort-related services, as reflected in its periodic earnings releases.

Business model and financial reporting metrics

Melco’s earnings releases highlight total operating revenues, operating income, net income attributable to the company, and segment-level performance. The company also presents Adjusted EBITDA and Adjusted Property EBITDA, which it describes as non-GAAP measures used by some investors to evaluate a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Melco notes that these measures exclude items such as depreciation and amortization and interest expense, and that they are used alongside U.S. GAAP measures like operating income, net income, and cash flows from operations.

The company’s disclosures include details on rolling chip volume, mass market table games drop, gaming machine handle, and associated win rates and hold percentages for various properties. It also reports non-gaming revenue by property, illustrating the contribution of non-gaming activities within its integrated resorts. Melco discusses net non-operating expenses, including interest expense and foreign exchange gains or losses, as well as depreciation and amortization and capital expenditures related to enhancement projects and new property development.

Capital structure and liquidity

Melco provides information on its cash and bank balances, restricted cash, total debt (net of unamortized deferred financing costs and original issue premiums), and available liquidity, which includes cash and undrawn revolving credit facilities. The company, through Melco Resorts Finance Limited and other subsidiaries, has issued senior notes and utilized revolving and senior secured credit facilities. Recent disclosures describe the pricing and issuance of senior notes due 2033, the use of proceeds to fund a conditional cash tender offer and redemption of existing senior notes due 2026, and repayments under revolving credit and senior secured credit facilities.

Melco has also reported a share repurchase program, under which it has repurchased American depositary shares from the open market up to a specified aggregate purchase amount, with remaining authority to repurchase additional ordinary shares under the program.

Corporate structure and ownership

The company states that it is majority owned by Melco International Development Limited, which is listed on the Main Board of The Stock Exchange of Hong Kong Limited. Melco International Development Limited is in turn majority owned and led by Mr. Lawrence Ho, who is described as the Chairman, Executive Director and Chief Executive Officer of Melco Resorts & Entertainment Limited. Melco’s board includes independent non-executive directors, and the company has disclosed the appointment of an independent non-executive director who also serves as chairman of its audit and risk committee and as a member of its compensation and nominating and corporate governance committees.

Headquarters and regulatory status

In its SEC filings, Melco Resorts & Entertainment Limited provides contact locations in Singapore and Hong Kong. The company files annual reports under cover of Form 20-F and submits current reports on Form 6-K pursuant to Rules 13a-16 or 15d-16 of the Securities Exchange Act of 1934. These filings typically include press releases such as earnings announcements, financing updates, and other corporate developments.

Sustainability and sourcing initiatives

Melco has announced that it has achieved a goal of sourcing 100% of eggs from cage-free hens across its global portfolio by 2025. The company links this initiative to its broader efforts toward sustainable sourcing, support for local suppliers, and animal welfare. It reports working with the Lever Foundation to secure cage-free egg supply and indicates that all food and beverage outlets across its portfolio in Macau, the Philippines, and Cyprus now serve cage-free eggs, as part of a strategy to embed sustainability into procurement practices.

MLCO stock and investor information

Melco’s American depositary shares trade on the Nasdaq Global Select Market under the ticker MLCO. Investors following MLCO stock can review the company’s periodic earnings releases, Form 6-K filings, and Form 20-F annual reports for detailed information on property performance, capital structure, liquidity, and non-GAAP performance measures. The company also hosts conference calls and provides audio webcasts and replays in connection with its quarterly earnings announcements.