Melco Resorts' Q1 2025 Earnings Call: Unpacking Contradictions on Market Impact, Gaming Performance, and Retail Trends

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Macau Market Share and Revenue Growth:
- Melco Resorts & Entertainment Limited reported a market share of 15.7% in Macau for Q1 2025, up from 14.7% in Q4 2024.
- The growth was driven by increased mass drop, strong customer engagement, and successful initiatives like the House of Dancing Water premiere.

Property EBITDA and Operational Efficiency:
- The company achieved property EBITDA of $313 million, with OpEx reduced to $3.1 million per day for Q1 2025.
- This was due to disciplined cost management, refining cost structures, and successfully completing property enhancements.

Studio City's Turnaround:
- Studio City's property EBITDA increased by 20% quarter-to-quarter, with sequentially improving results.
- The turnaround was attributed to the completion of renovations, transformation of main entrance areas, and new lobbies for Star and Celebrity Towers.

Capital Allocation and Shareholder Value:
- Melco repurchased approximately $165 million in MLCO ADSs in 2025, taking advantage of low valuations.
- The company aims to maximize shareholder value by balancing capital allocation between buybacks and debt reduction.