Melco Resorts & Entertainment Limited (MLCO) Q2 2023 Earnings Call Transcript

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Q2 2023 Earnings Conference Call August 1, 2023 8:30 AM ET

Company Participants

Jeanny Kim - Senior Vice President, Group Treasurer

Lawrence Ho - Chairman & Chief Executive Officer

Geoffrey Davis - Executive Vice President & Chief Financial Officer

David Sisk - Chief Operating Officer, Macau Resorts

Conference Call Participants

George Choi - Citi

John DeCree - CBRE Securities

Praveen Choudhary - Morgan Stanley

Simon Cheung - Goldman Sachs

Operator

Ladies and gentlemen, thank you for participating in the Second Quarter 2023 Earnings Conference Call of Melco Resorts & Entertainment Limited. At this time, all participants are in listen-only mode. After the call, we will conduct a question and session. Today's conference is being recorded.

I’d now like to turn the call over to Ms. Jeanny Kim, Senior Vice President, Group Treasurer of Melco Resorts & Entertainment Limited.

Jeanny Kim

Thank you, operator and thank you, everybody, for joining us today for our second quarter 2023 earnings call. On the call are Lawrence Ho, Geoff Davis, Evan Winkler and our Corporate Presidents in Macau, Manila and Cyprus.

Before we get started, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provision of the federal securities law. Our actual results could differ from our anticipated results. In addition, we may discuss non-GAAP measures. A definition and reconciliation of each of these measures to the most comparable GAAP financial measures are included in the earnings release.

Finally, please note that our supplementary earnings slides are posted on our Investor Relations website.

With that, I'll now turn it over to Mr. Lawrence Ho.

Lawrence Ho

Thank you, Jeanny. With the strength in our Macau recovery, as evident in the 43% increase in GGR in the second quarter of 2023, compared to the first quarter. Mass drop increased month-to-month and turnover in our premium direct VIP segment continue to exceed 2019 levels during the second quarter.

Mass drop further expanded into July, surpassing 2019 levels. And daily property reservation in July reached its highest point since Macau’s reopening. Labor supply issues in Macau have been largely resolved. We have been able to provide our customers with Melco’s full suite of services and amenities. We expect to add another 560 hotel rooms to our portfolio with the opening of the W Macau at Studio City in September and are well positioned to support the continuing increase of customers in Macau.