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    Praveen Choudhary • Morgan Stanley

    Praveen Choudhary's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership

    Praveen Choudhary's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership • Q2 2025

    Question

    Praveen Choudhary from Morgan Stanley asked if the House of Dancing Water show is positively impacting gaming business, and also requested an update on the business outlook and strategic review process for the Philippines.

    Answer

    Chairman and CEO Lawrence Ho Yau Lung confirmed the show has done 'wonders' for visitation at City of Dreams. President & Director Evan Winkler added that while it's an EBITDA contributor, they are still working to better convert show attendees into gaming customers. Regarding the Philippines, Property President Geoffry Philip Andres noted that cost initiatives are showing results and the market stabilized in July. EVP & CFO Geoffrey Stuart Davis stated the strategic review is ongoing with a shortlist of potential buyers.

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    Praveen Choudhary's questions to Melco Resorts & Entertainment Ltd (MLCO) leadership • Q1 2025

    Question

    Praveen Choudhary from Morgan Stanley asked if hold-adjusted EBITDA was expected to grow sequentially in Q2, inquired about the P&L impact timeline for the Sri Lanka project, and questioned the capital allocation strategy between share buybacks and deleveraging.

    Answer

    Executive Evan Winkler and CFO Geoffrey Davis affirmed their intention for sequential EBITDA growth, assuming continued momentum. Davis noted the Sri Lanka project's P&L impact would begin in August. CEO Yau Ho justified the significant buybacks as a 'once-in-a-lifetime opportunity' at low valuations, while Davis reiterated that debt reduction remains a key priority alongside opportunistic repurchases.

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

    Question

    Praveen Choudhary asked for details on the new trademark license fee paid to Melco's parent company, whether the asset-light strategy could extend to Cyprus and Thailand, and if the current trends could support a quarterly EBITDA run rate of around $300 million.

    Answer

    Executive Yau Ho confirmed the asset-light strategy is a commitment that could apply to Cyprus, while noting Thailand is a 'generational opportunity' that might warrant an exception. Executive Geoffrey Davis explained the new trademark fee is reflected in corporate expense guidance and is set at a lower percentage of revenue than competitors. He also agreed directionally that higher EBITDA is the goal given lower OpEx and higher market share.

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

    Question

    Praveen Choudhary asked if a specific net debt-to-EBITDA ratio would trigger dividend resumption and questioned the path to recovering 2019-level EBITDA and market share.

    Answer

    CFO Geoff Davis stated there is no specific leverage trigger for dividends, calling it a 'holistic' decision. CEO Lawrence Ho agreed there is significant untapped potential to reach 2019 levels and expressed confidence in the current strategy. He clarified that while achieving the #3 market share position in 2025 is a goal, reaching the 2019 market share level that year is less certain due to competitor activity and Melco's current asset base.

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