GlobeNewswire Inc | Nov 9, 2021 08:12AM EST

November 09, 2021

MACAU, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (Melco or the Company), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the third quarter of 2021.

Total operating revenues for the third quarter of 2021 were US$446.4 million, representing an increase of approximately 110% from US$212.9 million for the comparable period in 2020. The increase in total operating revenues was primarily attributable to improved performance in all gaming segments and non-gaming operations as a result of a year-over-year increase in inbound tourism in Macau.

Operating loss for the third quarter of 2021 was US$182.2 million, compared with operating loss of US$275.0 million in the third quarter of 2020.

Melco generated Adjusted Property EBITDA(1) of US$31.9 million in the third quarter of 2021, compared with negative Adjusted Property EBITDA of US$76.7 million in the third quarter of 2020.

Net loss attributable to Melco Resorts & Entertainment Limited for the third quarter of 2021 was US$233.2 million, or US$0.49 per ADS, compared with net loss attributable to Melco Resorts & Entertainment Limited of US$331.6 million, or US$0.70 per ADS, in the third quarter of 2020. The net loss attributable to noncontrolling interests was US$35.3 million and US$55.3 million during the third quarters of 2021 and 2020, respectively, all of which were related to Studio City, City of Dreams Manila, and the Cyprus Operations.

Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, Continued travel restrictions and quarantine measures in Macau and the region negatively impacted our third quarter operating and financial performance. To preserve our cash and liquidity, we continue to enforce strong cost control discipline in respect to both operating expenses and capital expenditures.

Macau remains one of the safest regions in the world thanks to the governments careful handling of the global pandemic, and we applaud the governments effort to further increase vaccination rates towards the goal of increasing immunity in Macau. At Melco, we continue to encourage vaccination uptake as a key company objective that will help to ensure a safe environment for colleagues, guests, and the community at large. Thanks to strong participation in our Get the Jab vaccination incentive campaign, Melcos vaccination rate in Macau has reached close to 95%. We look forward to further travel integration between mainland China and Macau, once Macau achieves an acceptable vaccination rate, and we remain fully committed to doing our part for the betterment of the community.

Looking forward, we remain confident that pent-up demand for Macau remains intact and strong.

Meanwhile, Melco remains steadfast to its investment commitments in Macau, where we are a leader in driving the growth and diversification of the Macau economy. The construction of Studio City Phase 2 is progressing on track for completion before December 27, 2022. This expansion will offer approximately 900 additional luxury hotel rooms and suites, an additional indoor/outdoor water park which is expected to be one of the largest in the world, a Cineplex, multiple fine-dining restaurants, and state-of-the-art MICE space.

In Europe, the development of City of Dreams Mediterranean continues and is on track with our target opening date in the second half of 2022. The project represents Europes largest integrated resort with approximately 500 luxury hotel rooms, approximately 100,000 squarefeet of MICE space, an outdoor amphitheater, a family adventure park, a variety of fine-dining outlets, and luxury retail.

We have discontinued our pursuit of an integrated resort development in Japan and will close our offices there in the coming months.

Additionally, we have recently repurchased approximately 3.1 million ADSs for approximately US$31 million. These share repurchases reflect the confidence we have in our company, our long-term strategy, and our future growth prospects.

Last, we are proud of our achievements in sustainability at Melco. In the third quarter, we were awarded the PATA Gold Awards 2021 in the Climate Change Initiative category, while International Gaming Awards 2021 named us Sustainable Resort of the Year in City of Dreams Macau. Through our initiatives, we have significantly reduced food waste, greenhouse gas emissions, the usage of harmful chemicals, and the consumption of single use plastics across our properties.

City of Dreams Third Quarter Results

For the quarter ended September 30, 2021, total operating revenues at City of Dreams were US$252.0 million, compared to US$91.4 million in the third quarter of 2020. City of Dreams generated Adjusted EBITDA of US$32.7 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$49.2 million in the third quarter of 2020. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming segments and non-gaming operations.

Rolling chip volume was US$2.79 billion for the third quarter of 2021 versus US$1.86 billion in the third quarter of 2020. The rolling chip win rate was 3.46% in the third quarter of 2021 versus 3.34% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$617.7 million in the third quarter of 2021, compared with US$90.1 million in the third quarter of 2020. The mass market table games hold percentage was 28.6% in the third quarter of 2021, compared to 38.1% in the third quarter of 2020.

Gaming machine handle for the third quarter of 2021 was US$376.9 million, compared with US$109.7 million in the third quarter of 2020. The gaming machine win rate was 3.1% in the third quarter of 2021 versus 3.4% in the third quarter of 2020.

Total non-gaming revenue at City of Dreams in the third quarter of 2021 was US$39.5 million, compared with US$18.0 million in the third quarter of 2020.

Altira Macau Third Quarter Results

For the quarter ended September 30, 2021, total operating revenues at Altira Macau were US$10.2 million, compared to US$11.0 million in the third quarter of 2020. Altira Macau generated negative Adjusted EBITDA of US$6.9 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$16.8 million in the third quarter of 2020.

Starting in the third quarter of 2021, Altira Macau has strategically repositioned to cater to the premium mass segment and has shut down VIP operations. In the third quarter of 2020, rolling chip volume was US$335.8 million and the rolling chip win rate was 3.06%. The expected rolling chip win rate range is 2.85% - 3.15%.

In the mass market table games segment, drop was US$28.7 million in the third quarter of 2021 versus US$15.7 million in the third quarter of 2020. The mass market table games hold percentage was 25.8% in the third quarter of 2021, compared with 16.9% in the third quarter of 2020. Gaming machine handle for the third quarter of 2021 was US$59.1 million, compared with US$42.6 million in the third quarter of 2020. The gaming machine win rate was 3.6% in the third quarter of 2021 versus 2.3% in the third quarter of 2020.

Total non-gaming revenue at Altira Macau in the third quarter of 2021 was US$2.0 million, compared with US$2.2 million in the third quarter of 2020.

Mocha Clubs Third Quarter Results

Total operating revenues from Mocha Clubs were US$22.2 million in the third quarter of 2021, compared to US$11.3 million in the third quarter of 2020. Mocha Clubs generated Adjusted EBITDA of US$4.8 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$0.5 million in the same period in 2020.

Gaming machine handle for the third quarter of 2021 was US$491.3 million, compared with US$279.6 million in the third quarter of 2020. The gaming machine win rate was 4.5% in the third quarter of 2021 versus 4.0% in the third quarter of 2020.

Studio City Third Quarter Results

For the quarter ended September 30, 2021, total operating revenues at Studio City were US$81.8 million, compared to US$30.8 million in the third quarter of 2020. Studio City generated negative Adjusted EBITDA of US$14.0 million in the third quarter of 2021, compared with negative Adjusted EBITDA of US$21.7 million in the third quarter of 2020. The year-over-year change in Adjusted EBITDA was primarily a result of better performance in overall gaming and non-gaming operations.

Studio Citys rolling chip volume was US$472.4 million in the third quarter of 2021 versus US$148.8 million in the third quarter of 2020. The rolling chip win rate was 2.35% in the third quarter of 2021 versus 3.41% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$250.5 million in the third quarter of 2021, compared with US$49.7 million in the third quarter of 2020. The mass market table games hold percentage was 26.4% in the third quarter of 2021, compared to 31.5% in the third quarter of 2020.

Gaming machine handle for the third quarter of 2021 was US$271.5 million, compared with US$99.2 million in the third quarter of 2020. The gaming machine win rate was 2.9% in the third quarter of 2021, compared to 2.7% in the third quarter of 2020.

Total non-gaming revenue at Studio City in the third quarter of 2021 was US$19.6 million, compared with US$11.5 million in the third quarter of 2020.

City of Dreams Manila Third Quarter Results

For the quarter ended September 30, 2021, total operating revenues at City of Dreams Manila were US$52.5 million, compared to US$43.4 million in the third quarter of 2020. City of Dreams Manila generated Adjusted EBITDA of US$11.7 million in the third quarter of 2021, compared with Adjusted EBITDA of US$5.2 million in the comparable period of 2020. The year-over-year increase in Adjusted EBITDA was primarily due to better performance in the mass market table games and gaming machine segments, partially offset by softer performance in the rolling chip segment.

City of Dreams Manilas rolling chip volume was US$25.3 million in the third quarter of 2021 versus US$561.3 million in the third quarter of 2020. The rolling chip win rate was 6.75% in the third quarter of 2021 versus 2.68% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop increased to US$82.0 million in the third quarter of 2021, compared with US$63.8 million in the third quarter of 2020. The mass market table games hold percentage was 28.1% in the third quarter of 2021, compared to 29.0% in the third quarter of 2020.

Gaming machine handle for the third quarter of 2021 was US$527.8 million, compared with US$287.9 million in the third quarter of 2020. The gaming machine win rate was 5.5% in the third quarter of 2021 versus 5.8% in the third quarter of 2020.

Total non-gaming revenue at City of Dreams Manila in the third quarter of 2021 was US$9.8 million, compared with US$8.7 million in the third quarter of 2020.

Cyprus Operations Third Quarter Results

The Company is licensed to operate a temporary casino, the first casino in the Republic of Cyprus, and four satellite casinos. Upon the completion and opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease.

For the quarter ended September 30, 2021, total operating revenues at Cyprus Casinos were US$20.2 million, compared to US$20.5 million in the third quarter of 2020. Cyprus Casinos generated Adjusted EBITDA of US$3.6 million in the third quarter of 2021, compared with Adjusted EBITDA of US$6.3 million in the third quarter of 2020.

Rolling chip volume was US$2.7 million for the third quarter of 2021 versus US$0.2 million in the third quarter of 2020. The rolling chip win rate was 22.33% in the third quarter of 2021 versus negative 36.03% in the third quarter of 2020. The expected rolling chip win rate range is 2.85% - 3.15%.

Mass market table games drop was US$31.3 million in the third quarter of 2021, compared with US$23.3 million in the third quarter of 2020. The mass market table games hold percentage was 17.0% in the third quarter of 2021, compared to 20.6% in the third quarter of 2020.

Gaming machine handle for the third quarter of 2021 was US$293.1 million, compared with US$307.5 million in the third quarter of 2020. The gaming machine win rate was 5.0% in the third quarter of 2021 versus 5.1% in the third quarter of 2020.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2021 were US$87.1 million, which mainly included interest expenses of US$87.4 million, net of amounts capitalized.

Depreciation and amortization costs of US$147.7 million were recorded in the third quarter of 2021, of which US$14.3 million related to the amortization expense for our gaming subconcession and US$5.7 million related to the amortization expense for the land use rights.

The negative Adjusted EBITDA for Studio City for the three months ended September 30, 2021 referred to above was US$9.1 million less than the negative Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (SCIHL) dated November 9, 2021 (the Studio City earnings release). The Adjusted EBITDA of Studio City contained in the Studio City earnings release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain intercompany costs related to the table games operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of September 30, 2021 aggregated to US$1.52 billion, including US$0.4 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$6.16 billion at the end of the third quarter of 2021.

Capital expenditures for the third quarter of 2021 were US$221.3 million, which primarily related to various construction projects at Studio City Phase 2 and City of Dreams Mediterranean.

On November 5, 2021, MCO Nominee One Limited (MCO Nominee One), a subsidiary of Melco, received confirmation that the majority of lenders of the senior facilities agreement dated April 29, 2020, entered into between, among others, MCO Nominee One, as borrower, and Bank of China Limited, Macau Branch, Bank of Communications Co., Ltd. Macau Branch and Morgan Stanley Senior Funding, Inc., as joint global coordinators, under which lenders have made available HK$14.85 billion (equivalent to US$1.92 billion) in a revolving credit facility for a term of five years (the 2020 Credit Facilities) have consented and agreed to a waiver extension of the following financial condition covenants contained in the revolving credit facility under the 2020 Credit Facilities (the Facility Agreement): (i) meet or exceed the interest cover ratio (ratio of consolidated EBITDA to consolidated net finance charges as such terms are defined in the Facility Agreement) of 2.50 to 1.00; (ii) not exceed the senior leverage ratio (ratio of consolidated total debt to consolidated EBITDA as such terms are defined in the Facility Agreement) of 3.50 to 1.00; and (iii) not exceed the total leverage ratio (ratio of consolidated total debt to consolidated EBITDA as such terms are defined in the Facility Agreement) of 4.50 to 1.00, in each case in respect of the relevant periods ending on the following applicable test dates: (a) March 31, 2022; (b) June 30, 2022; (c) September 30, 2022; and (d) December 31, 2022. MCO Nominee One haspaid a customary fee to all consenting lenders in relation to such consent and such consenthas become effective upon receipt of the consent fee by the facility agent of the lenders to the 2020 Credit Facilities.

Recent Developments

COVID-19 outbreaks continue to have a material effect on our operations, financial position, and future prospects in the fourth quarter of 2021.

In Macau, our operations have been impacted by on-and-off travel restrictions and quarantine requirements as imposed by the governments of Macau, Hong Kong, and China in response to isolated cases. The appearance of COVID-19 cases in early August 2021 led to city-wide mandatory testing, mandatory closure of most entertainment and leisure venues (casinos and gaming areas excluded), and strict travel restrictions and requirements being implemented to enter and exit Macau. Similarly in late September 2021, the identification of additional COVID-19 cases again led to a repeat of testing, closure, and travel restrictions, which led to reduced turnout for October Golden Week holiday. Since October 19, 2021, authorities have eased pandemic prevention measures such that travelers no longer require a 14-day quarantine on arrival in Zhuhai,and the validity of negative nucleic acid tests were extended from 24 hours to 48 hours or seven days. As a result, our visitation has been gradually recovering.

In the Philippines, City of Dreams Manilla was operating at limited capacity since the beginning of the quarter until August 5, 2021, when Manila was put into lockdown on August 6, 2021 due to a surge in COVID-19 cases. On September 17, 2021, City of Dreams Manila reopened operations with capacity limited at 50% under the new Alert Level 4 classification. Hotels were not open to the general public, but indoor F&B operations were allowed to take customers who had been vaccinated. On October 16, 2021, the Philippines downgraded to Alert Level 3, allowing hotels to take vaccinated local guests on staycation packages. Most recently in the fourth quarter, this was further downgraded to Alert Level 2 on November 5, 2021 allowing hotels to take leisure guests. Meanwhile, from a business development front, City of Dreams Manila commenced operating online gaming, namely, live-dealer table games on August 10, 2021 and slot machines on September 15, 2021 after receiving the required approvals from PAGCOR.Such online gaming offerings are only available to registered patrons of City of Dreams Manila inside the Philippines.

In Cyprus, our casinos were fully opened throughout the third quarter and we saw sequential improvement versus the second quarter thanks to progressively higher permitted capacities and increased visitation over the summer months, although with permitted capacity limited at 50%.Certain other COVID-19 restrictions continue to remain in force, such as wearing of masks on the casino floor and smoking only in designated areas.

The pace of recovery from COVID-19 will depend on future events, including duration of travel and visa restrictions, the pace of vaccination progress, development of new medicine for COVID-19, the impact of potentially higher unemployment rates, declines in income levels, and loss of personal wealth resulting from the COVID-19 outbreak affecting discretionary spending and travel, all of which remain highly uncertain.

Conference Call Information

Melco Resorts & Entertainment Limited will hold a conference call to discuss its third quarter 2021 financial results on Tuesday, November 9, 2021 at 8:30 a.m. Eastern Time (or 9:30 p.m. Hong Kong Time). To join the conference call, please use the dial-in details below:

US Toll Free 1 833 239 5575US Toll / International 1 332 208 9458HK Toll 852 3018 8307HK Toll Free 800 906 613Japan Toll 81 3 4577 4717Japan Toll Free 012 092 5482UK Toll Free 080 0279 8053Australia Toll 61 290 833 216Australia Toll Free 1 800 754 642Philippines Toll Free 1 800 1888 0892 Passcode 9266657



An audio webcast will also be available at http://www.melco-resorts.com.

To access the replay, please use the dial-in details below:

US Toll Free 1 855 452 5696US Toll / International 1 646 254 3697HK Toll 852 3051 2780HK Toll Free 800 963 117Japan Toll 81 3 4580 6717Japan Toll Free 012 095 9034Philippines Toll Free 1 800 1612 0166 Conference ID 9266657

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Melco Resorts & Entertainment Limited (the Company) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the SEC), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Companys beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) the global pandemic of COVID-19, caused by a novel strain of the coronavirus, and the continued impact of its consequences on our business, our industry and the global economy, (ii) growth of the gaming market and visitations in Macau, the Philippines and the Republic of Cyprus, (iii) capital and credit market volatility, (iv) local and global economic conditions, (v) our anticipated growth strategies, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as may, will, expect, anticipate, target, aim, estimate, intend, plan, believe, potential, continue, is/are likely to or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Companys filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

(1) Adjusted EBITDA is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine parties under the cooperative arrangement (the Philippine Parties), land rent to Belle Corporation and other non-operating income and expenses. Adjusted Property EBITDA is net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, development costs, property charges and other, share-based compensation, payments to the Philippine Parties, land rent to Belle Corporation, Corporate and Other expenses and other non-operating income and expenses. Adjusted EBITDA and Adjusted Property EBITDA are presented exclusively as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA and Adjusted Property EBITDA as measures of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a companys ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported Adjusted EBITDA and Adjusted Property EBITDA as supplements to financial measures in accordance with U.S. GAAP. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Companys performance, as alternatives to cash flows from operating activities as measures of liquidity, or as alternatives to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA and Adjusted Property EBITDA do not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA and Adjusted Property EBITDA as only two of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.

Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA or Adjusted Property EBITDA. Also, the Companys calculation of Adjusted EBITDA and Adjusted Property EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of Adjusted EBITDA and Adjusted Property EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

(2) Adjusted net income/loss is net income/loss before pre-opening costs, development costs, property charges and other, loss on extinguishment of debt and costs associated with debt modification, net of noncontrolling interests and taxes calculated using specific tax treatments applicable to the adjustments based on their respective jurisdictions. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share (EPS) are presented as supplemental disclosures because management believes they are widely used to measure the performance, and as a basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to income/loss and EPS computed in accordance with U.S. GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income/loss attributable to Melco Resorts & Entertainment Limited and adjusted net income/loss attributable to Melco Resorts & Entertainment Limited per share may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Melco Resorts & Entertainment Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Melco Resorts & Entertainment Limited

The Company, with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO), is a developer, owner and operator of integrated resort facilities in Asia and Europe. The Company currently operates Altira Macau (www.altiramacau.com), an integrated resort located at Taipa, Macau and City of Dreams (www.cityofdreamsmacau.com), an integrated resort located in Cotai, Macau. Its business also includes the Mocha Clubs (www.mochaclubs.com), which comprise the largest non-casino based operations of electronic gaming machines in Macau. The Company also majority owns and operates Studio City (www.studiocity-macau.com), a cinematically-themed integrated resort in Cotai, Macau. In the Philippines, a Philippine subsidiary of the Company currently operates and manages City of Dreams Manila (www.cityofdreamsmanila.com), an integrated resort in the Entertainment City complex in Manila. In Europe, the Company is currently developing City of Dreams Mediterranean (www.cityofdreamsmed.com.cy) in the Republic of Cyprus, which is expected to be the largest and premier integrated destination resort in Europe. The Company is currently operating a temporary casino, the first authorized casino in the Republic of Cyprus, and is licensed to operate four satellite casinos (Cyprus Casinos). Upon the opening of City of Dreams Mediterranean, the Company will continue to operate the satellite casinos while operation of the temporary casino will cease. For more information about the Company, please visit www.melco-resorts.com.

The Company is strongly supported by its single largest shareholder, Melco International Development Limited, a company listed on the Main Board of The Stock Exchange of Hong Kong Limited and is substantially owned and led by Mr. Lawrence Ho, who is the Chairman, Executive Director and Chief Executive Officer of the Company.

For the investment community, please contact: Robin YuenDirector, Investor RelationsTel: +852 2598 3619Email: robinyuen@melco-resorts.com

For media enquiries, please contact:Chimmy LeungExecutive Director, Corporate CommunicationsTel: +852 3151 3765Email: chimmyleung@melco-resorts.com

Melco Resorts & Entertainment Limited and SubsidiariesCondensed Consolidated Statements of Operations (Unaudited)(In thousands of U.S. dollars, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating revenues:Casino $ 373,170 $ 170,775 $ 1,285,604 $ 1,030,914 Rooms 33,428 15,184 112,835 67,228 Food and 20,529 13,385 72,024 48,047 beverageEntertainment, 19,259 13,552 61,285 53,732 retail and otherTotal operating 446,386 212,896 1,531,748 1,199,921 revenues Operating costs and expenses:Casino (297,847 ) (207,188 ) (1,034,602 ) (986,818 )Rooms (11,592 ) (8,573 ) (37,270 ) (34,897 )Food and (20,967 ) (14,822 ) (68,775 ) (62,482 )beverageEntertainment, (7,110 ) (9,378 ) (23,108 ) (44,915 )retail and otherGeneral and (112,011 ) (80,985 ) (326,401 ) (326,214 )administrativePayments tothe Philippine (3,176 ) (2,743 ) (20,269 ) (7,678 )PartiesPre-opening (650 ) (428 ) (2,774 ) (1,049 )costsDevelopment (24,648 ) (2,831 ) (31,979 ) (22,633 )costsAmortizationof gaming (14,307 ) (14,364 ) (42,990 ) (43,050 )subconcessionAmortization (5,703 ) (5,726 ) (17,137 ) (17,161 )of land use rightsDepreciation (127,663 ) (133,439 ) (375,592 ) (410,757 )and amortizationProperty (2,945 ) (7,426 ) (23,937 ) (37,990 )charges and otherTotal operating (628,619 ) (487,903 ) (2,004,834 ) (1,995,644 )costs and expensesOperating loss (182,233 ) (275,007 ) (473,086 ) (795,723 )Non-operating income (expenses):Interest 1,580 1,437 5,161 3,732 incomeInterestexpenses, net of (87,387 ) (91,864 ) (265,096 ) (250,288 )amountscapitalizedOther (3,473 ) (2,471 ) (9,953 ) (5,644 )financing costsForeignexchange gains 1,441 1,101 3,050 (5,117 )(losses), netOther income 741 (50 ) 2,372 (151,857 )(expenses), netLoss onextinguishment of - (18,497 ) (28,817 ) (19,733 )debtCostsassociated with - - - (310 )debt modificationTotalnon-operating (87,098 ) (110,344 ) (293,283 ) (429,217 )expenses, netLoss before income (269,331 ) (385,351 ) (766,369 ) (1,224,940 )taxIncome tax credit 837 (1,560 ) (154 ) 5,166 (expense)Net loss (268,494 ) (386,911 ) (766,523 ) (1,219,774 )Net lossattributable to 35,273 55,330 114,709 156,016 noncontrollinginterestsNet loss attributable toMelco Resorts& Entertainment $ (233,221 ) $ (331,581 ) $ (651,814 ) $ (1,063,758 )Limited Net loss attributable toMelco Resorts& Entertainment Limited per share:Basic $ (0.162 ) $ (0.232 ) $ (0.454 ) $ (0.743 )Diluted $ (0.162 ) $ (0.232 ) $ (0.454 ) $ (0.743 ) Net loss attributable toMelco Resorts& Entertainment Limited per ADS:Basic $ (0.487 ) $ (0.695 ) $ (1.362 ) $ (2.228 )Diluted $ (0.487 ) $ (0.696 ) $ (1.362 ) $ (2.230 ) Weighted averagesharesoutstandingused in net lossattributable toMelco Resorts& Entertainment Limitedper sharecalculation:Basic 1,437,651,448 1,430,817,899 1,435,941,037 1,432,437,101 Diluted 1,437,651,448 1,430,817,899 1,435,941,037 1,432,437,101

Melco Resorts & Entertainment Limited and SubsidiariesCondensed Consolidated Balance Sheets(In thousands of U.S. dollars, except share and per share data) September 30, December 31, 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,521,562 $ 1,755,351 Restricted cash 274 13 Accounts receivable, net 52,168 129,619 Amounts due from affiliated companies 280 765 Inventories 35,572 37,277 Prepaid expenses and other current assets 119,019 85,798 Assets held for sales 3,287 - Total current assets 1,732,162 2,008,823 Property and equipment, net 5,821,612 5,681,268 Gaming subconcession, net 41,409 84,663 Intangible assets, net 53,782 58,833 Goodwill 81,858 82,203 Long-term prepayments, deposits and other assets 187,424 284,608 Restricted cash 131 406 Deferred tax assets, net 6,701 6,376 Operating lease right-of-use assets 74,527 92,213 Land use rights, net 701,442 721,574 Total assets $ 8,701,048 $ 9,020,967 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,882 $ 9,483 Accrued expenses and other current liabilities 914,616 983,865 Income tax payable 12,847 14,164 Operating lease liabilities, current 21,107 27,066 Finance lease liabilities, current 41,120 80,004 Current portion of long-term debt, net 128 - Amounts due to affiliated companies 1,443 1,668 Total current liabilities 998,143 1,116,250 Long-term debt, net 6,157,476 5,645,391 Other long-term liabilities 41,750 29,213 Deferred tax liabilities, net 44,450 45,952 Operating lease liabilities, non-current 64,480 75,867 Finance lease liabilities, non-current 351,456 270,223 Total liabilities 7,657,755 7,182,896 Shareholders' equity: Ordinary shares, par value $0.01; 7,300,000,000 shares authorized;1,456,547,942 and 1,456,547,942 shares issued;1,431,608,590 and 1,430,965,312 shares 14,565 14,565 outstanding, respectivelyTreasury shares, at cost; 24,939,352 and (109,184 ) (121,028 )25,582,630 shares, respectivelyAdditional paid-in capital 3,227,235 3,207,312 Accumulated other comprehensive losses (59,399 ) (11,332 )Accumulated losses (2,639,276 ) (1,987,396 )Total Melco Resorts & Entertainment Limited 433,941 1,102,121 shareholders? equityNoncontrolling interests 609,352 735,950 Total shareholders' equity 1,043,293 1,838,071 Total liabilities and shareholders' equity $ 8,701,048 $ 9,020,967

Melco Resorts & Entertainment Limited and SubsidiariesReconciliation of Net Loss Attributable to Melco Resorts & EntertainmentLimited toAdjusted Net Loss Attributable to Melco Resorts & Entertainment Limited(Unaudited)(In thousands of U.S. dollars, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net loss attributable toMelco Resorts &Entertainment $ (233,221 ) $ (331,581 ) $ (651,814 ) $ (1,063,758 )LimitedPre-opening costs 650 428 2,774 1,049 Development costs 24,648 2,831 31,979 22,633 Property charges 2,945 7,426 23,937 37,990 and otherLoss onextinguishment of - 18,497 28,817 19,733 debtCosts associatedwith debt - - - 310 modificationIncome tax impact (739 ) (355 ) (2,133 ) (4,178 )on adjustmentsNoncontrollinginterests impact (440 ) (8,321 ) (16,185 ) (10,677 )on adjustmentsAdjusted net loss attributable toMelco Resorts &Entertainment $ (206,157 ) $ (311,075 ) $ (582,625 ) $ (996,898 )Limited Adjusted net loss attributable toMelco Resorts &Entertainment Limited pershare:Basic $ (0.143 ) $ (0.217 ) $ (0.406 ) $ (0.696 )Diluted $ (0.143 ) $ (0.218 ) $ (0.406 ) $ (0.697 ) Adjusted net loss attributable toMelco Resorts &Entertainment Limited per ADS:Basic $ (0.430 ) $ (0.652 ) $ (1.217 ) $ (2.088 )Diluted $ (0.430 ) $ (0.654 ) $ (1.217 ) $ (2.091 ) Weighted averagesharesoutstandingused in adjusted netloss attributabletoMelco Resorts &EntertainmentLimitedper sharecalculation:Basic 1,437,651,448 1,430,817,899 1,435,941,037 1,432,437,101 Diluted 1,437,651,448 1,430,817,899 1,435,941,037 1,432,437,101

Melco Resorts & Entertainment Limited and SubsidiariesReconciliation of Operating Loss to Adjusted EBITDA and Adjusted PropertyEBITDA (Unaudited)(In thousands of U.S. dollars) Three Months Ended September 30, 2021 Altira Macau Mocha City of Dreams Studio City City of Cyprus Corporate and Total Dreams Manila Operations Other Operating (loss) $ (12,725 ) $ 3,296 $ (35,542 ) $ (49,810 ) $ (12,639 ) $ 541 $ (75,354 ) $ (182,233 )income Payments to the - - - - 3,176 - - 3,176 Philippine PartiesLand rent toBelle - - - - 672 - - 672 CorporationPre-opening - - - 6 - 644 - 650 costsDevelopment - - - - - - 24,648 24,648 costsDepreciation 5,542 1,420 62,736 34,327 19,844 2,205 21,599 147,673 and amortizationShare-based 365 115 4,307 1,137 517 238 10,840 17,519 compensationPropertycharges and (128 ) 15 1,212 347 130 - 1,369 2,945 otherAdjusted EBITDA (6,946 ) 4,846 32,713 (13,993 ) 11,700 3,628 (16,898 ) 15,050 Corporateand Other - - - - - - 16,898 16,898 expensesAdjusted $ (6,946 ) $ 4,846 $ 32,713 $ (13,993 ) $ 11,700 $ 3,628 $ - $ 31,948 Property EBITDA Three Months Ended September 30, 2020 Altira Macau Mocha City of Dreams Studio City City of Cyprus Corporate and Total Dreams Manila Operations Other Operating (loss) $ (22,653 ) $ (2,367 ) $ (111,994 ) $ (66,769 ) $ (20,982 ) $ 2,447 $ (52,689 ) $ (275,007 )income Payments to the - - - - 2,743 - - 2,743 Philippine PartiesLand rent toBelle - - - - 812 - - 812 CorporationPre-opening - - 29 77 - 322 - 428 costsDevelopment - - - - - - 2,831 2,831 costsDepreciation 5,407 1,850 59,743 44,399 16,733 3,470 21,927 153,529 and amortizationShare-based 140 36 1,512 484 340 54 8,526 11,092 compensationPropertycharges and 261 30 1,517 71 5,550 (3 ) - 7,426 otherAdjusted EBITDA (16,845 ) (451 ) (49,193 ) (21,738 ) 5,196 6,290 (19,405 ) (96,146 )Corporateand Other - - - - - - 19,405 19,405 expensesAdjusted $ (16,845 ) $ (451 ) $ (49,193 ) $ (21,738 ) $ 5,196 $ 6,290 $ - $ (76,741 )Property EBITDA

Melco Resorts & Entertainment Limited and SubsidiariesReconciliation of Operating Loss to Adjusted EBITDA and Adjusted PropertyEBITDA (Unaudited)(In thousands of U.S. dollars) Nine Months Ended September 30, 2021 Altira Macau Mocha City of Dreams Studio City City of Dreams Cyprus Corporate and Total Manila Operations Other Operating (loss) $ (72,608 ) $ 7,241 $ (52,024 ) $ (129,172 ) $ (28,303 ) $ (14,375 ) $ (183,845 ) $ (473,086 )income Payments tothe Philippine - - - - 20,269 - - 20,269 PartiesLand rent toBelle - - - - 2,179 - - 2,179 CorporationPre-opening - - 195 739 - 1,840 - 2,774 costsDevelopment - - - - - - 31,979 31,979 costsDepreciation 16,518 4,641 186,130 101,893 53,187 8,586 64,764 435,719 and amortizationShare-based 618 187 7,217 1,974 1,298 350 28,262 39,906 compensationPropertycharges and 1,630 203 10,769 4,212 5,732 - 1,391 23,937 otherAdjusted EBITDA (53,842 ) 12,272 152,287 (20,354 ) 54,362 (3,599 ) (57,449 ) 83,677 Corporateand Other - - - - - - 57,449 57,449 expensesAdjusted $ (53,842 ) $ 12,272 $ 152,287 $ (20,354 ) $ 54,362 $ (3,599 ) $ - $ 141,126 Property EBITDA Nine Months Ended September 30, 2020 Altira Macau Mocha City of Dreams Studio City City of Dreams Cyprus Corporate and Total Manila Operations Other Operating (loss) $ (62,735 ) $ (1,515 ) $ (260,100 ) $ (210,500 ) $ (54,233 ) $ (6,808 ) $ (199,832 ) $ (795,723 )income Payments tothe Philippine - - - - 7,678 - - 7,678 PartiesLand rent toBelle - - - - 2,374 - - 2,374 CorporationPre-opening 37 - (21 ) 133 - 900 - 1,049 costsDevelopment - - - - - - 22,633 22,633 costsDepreciation 16,086 5,459 186,253 131,043 49,553 9,128 73,446 470,968 and amortizationShare-based 366 41 3,960 1,416 1,066 155 25,172 32,176 compensationPropertycharges and 897 56 11,325 4,414 5,753 129 15,416 37,990 otherAdjusted EBITDA (45,349 ) 4,041 (58,583 ) (73,494 ) 12,191 3,504 (63,165 ) (220,855 )Corporateand Other - - - - - - 63,165 63,165 expensesAdjusted $ (45,349 ) $ 4,041 $ (58,583 ) $ (73,494 ) $ 12,191 $ 3,504 $ - $ (157,690 )Property EBITDA

Melco Resorts & Entertainment Limited and SubsidiariesReconciliation of Net Loss Attributable to Melco Resorts & EntertainmentLimited toAdjusted EBITDA and Adjusted Property EBITDA (Unaudited)(In thousands of U.S. dollars) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net lossattributable toMelco Resorts & $ (233,221 ) $ (331,581 ) $ (651,814 ) $ (1,063,758 )EntertainmentLimitedNet lossattributable to (35,273 ) (55,330 ) (114,709 ) (156,016 )noncontrollinginterestsNet loss (268,494 ) (386,911 ) (766,523 ) (1,219,774 )Income tax (837 ) 1,560 154 (5,166 )(credit) expenseInterest andother 87,098 110,344 293,283 429,217 non-operatingexpenses, netProperty charges 2,945 7,426 23,937 37,990 and otherShare-based 17,519 11,092 39,906 32,176 compensationDepreciation and 147,673 153,529 435,719 470,968 amortizationDevelopment 24,648 2,831 31,979 22,633 costsPre-opening 650 428 2,774 1,049 costsLand rent toBelle 672 812 2,179 2,374 CorporationPaymentsto the 3,176 2,743 20,269 7,678 PhilippinePartiesAdjusted EBITDA 15,050 (96,146 ) 83,677 (220,855 )Corporate and 16,898 19,405 57,449 63,165 Other expensesAdjusted $ 31,948 $ (76,741 ) $ 141,126 $ (157,690 )Property EBITDA

Melco Resorts & Entertainment Limited and SubsidiariesSupplemental Data Schedule Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 RoomStatistics^(3) : Altira Macau Average daily rate $ 104 $ 152 $ 110 $ 171 ^(4) Occupancy per available 46 % 19 % 51 % 32 % room Revenue per available $ 48 $ 29 $ 56 $ 54 room ^(5) City of Dreams Average daily rate $ 211 $ 208 $ 203 $ 230 ^(4) Occupancy per available 46 % 15 % 55 % 24 % room Revenue per available $ 96 $ 31 $ 113 $ 54 room ^(5) Studio City Average daily rate $ 123 $ 119 $ 122 $ 134 ^(4) Occupancy per available 52 % 13 % 54 % 20 % room Revenue per available $ 64 $ 16 $ 66 $ 27 room ^(5) City of Dreams Manila Average daily rate $ 117 $ 291 $ 110 $ 222 ^(4) Occupancy per available 75 % 26 % 69 % 58 % room Revenue per available $ 88 $ 77 $ 76 $ 129 room ^(5) OtherInformation^ (6): Altira Macau Average number of 100 101 101 96 table games Average number of 128 101 119 109 gaming machines Table games win per unit $ 804 $ 1,390 $ 2,188 $ 4,813 per day ^(7) Gaming machines win per unit per $ 181 $ 104 $ 202 $ 123 day ^(8) City of Dreams Average number of 514 515 511 489 table games Average number of 607 482 536 476 gaming machines Table games win per unit $ 5,782 $ 2,033 $ 7,090 $ 6,149 per day ^(7) Gaming machines win per unit per $ 212 $ 85 $ 297 $ 202 day ^(8) Studio City Average number of 291 291 291 279 table games Average number of 656 595 623 579 gaming machines Table games win per unit $ 2,883 $ 774 $ 3,354 $ 2,234 per day ^(7) Gaming machines win per unit per $ 131 $ 48 $ 135 $ 96 day ^(8) City of Dreams Manila Average number of 302 301 297 300 table games Average number of 2,377 2,256 2,304 2,274 gaming machines Table games win per unit $ 1,638 $ 1,450 $ 1,926 $ 2,712 per day ^(7) Gaming machines win per unit per $ 251 $ 96 $ 190 $ 143 day ^(8) Cyprus Operations Average number of 32 25 32 30 table games Average number of 457 304 440 362 gaming machines Table games win per unit $ 2,007 $ 2,041 $ 1,844 $ 1,901 per day ^(7) Gaming machines win per unit per $ 346 $ 565 $ 372 $ 483 day ^(8) ^ Room statistics exclude rooms that were temporarily closed or provided to(3) staff members due to the COVID-19 outbreak

^ Average daily rate is calculated by dividing total room revenues including(4) complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms^ Revenue per available room is calculated by dividing total room revenues(5) including complimentary rooms (less service charges, if any) by total rooms available^ Table games and gaming machines that were not in operation due to government(6) mandated closures or social distancing measures in relation to the COVID-19 outbreak have been excluded^ Table games win per unit per day is shown before discounts, commissions,(7) non-discretionary incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis^ Gaming machines win per unit per day is shown before non-discretionary(8) incentives (including our point-loyalty programs) and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis