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    Luis Chinchilla • Deutsche Bank AG

    Luis Chinchilla's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership

    Luis Chinchilla's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership • Q4 2024

    Question

    Luis Chinchilla asked about the capital allocation strategy for potential proceeds from the City of Dreams Manila sale, specifically the balance between debt reduction and share buybacks. He also sought clarification on post-Golden Week business volumes and requested detailed 2025 CapEx guidance.

    Answer

    Executive Geoffrey Davis stated that debt reduction is the primary objective for capital allocation, but the company will also consider capital-light investments and opportunistic share buybacks given the stock's valuation. Executive Yau Ho confirmed that business volumes post-Chinese New Year have been very strong. Geoffrey Davis provided 2025 CapEx guidance of approximately $415 million.

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    Luis Chinchilla's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership • Q3 2024

    Question

    Luis Chinchilla questioned if pressure on luxury spending among Chinese consumers is affecting Melco's premium mass segment and requested CapEx guidance.

    Answer

    CEO Lawrence Ho explained that the correlation between luxury retail and gaming has weakened post-COVID, as consumers now prioritize experiences, which benefits Macau's diverse offerings. CFO Geoff Davis provided CapEx guidance of approximately $115 million for Q4 2024 and a target of around $400 million for 2025, with $70-$75 million of the 2025 budget allocated to the Sri Lanka project.

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