Melco Resorts & Entertainment LTD

Operations

Our primary business segments consist of:

Macau

In 2024, City of Dreams had an average of approximately 430 gaming tables and approximately 613 gaming machines. Morpheus offers approximately 783 rooms, suites and villas. Nüwa, which was under renovation since early 2020 andre-opened at the end of March 2021, offers approximately 286 guest rooms, suites and villas, and the Grand Hyatt Macau hotel offers approximately 763 guest rooms and suites. The Countdown is currently undergoing renovations as part of its rebranding. In addition, City of Dreams includes approximately 41 restaurants and bars, approximately 149 retail outlets, a wet stage performance theater, recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons and banquet and meeting facilities. The wet stage performance theater with approximately 2,000 seats features House of Dancing Water which has been temporarily closed since June 2020 and is currently expected tore-open in May 2025. The Para nightclub offers approximately 2,232 square meters (equivalent to approximately 24,025 square feet) of live entertainment space. City of Dreams targets premium market and rolling chip patrons from regional markets across Asia.

For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from City of Dreams amounted to US$2,282.3 million, US$1,930.5 million and US$559.7 million, representing 49.2%, 51.1% and 41.5% of our total operating revenues, respectively.

In 2024, Altira Macau had an average of approximately 39 gaming tables and 134 gaming machines operated under the brand Mocha at Altira Macau. In addition, Altira Macau had approximately 216 hotel rooms as of December 31, 2024 and features several fine dining and casual restaurants and recreation and leisure facilities. Starting in the third quarter of 2021, Altira Macau was strategically repositioned to cater to the premium mass and mass segments and shut down VIP rolling chip operations. For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from Altira Macau amounted to US$125.1 million, US$110.8 million and US$32.6 million, representing 2.7%, 2.9% and 2.4% of our total operating revenues, respectively.

Studio City is a large-scale cinematically-themed integrated resort located in Cotai, with gaming facilities, luxury hotel offerings and various entertainment, retail and food and beverage outlets to attract a diverse range of customers in Asia, with a current focus on the mass market and targeting all ranges of mass market patrons. Studio City Casino has strategically repositioned itself to focus on the premium mass and mass segments, and VIP rolling chip operations at Studio City Casino were transferred to City of Dreams in late October 2024. The SC ADSs are listed on the New York Stock Exchange, and we owned approximately 54.9% of SCI’s total issued and outstanding shares as of March 15, 2025. In 2024, Studio City had an average of approximately 251 gaming tables and 709 gaming machines. For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from Studio City amounted to US$1,390.3 million, US$958.4 million and US$176.0 million, representing 30.0%, 25.4% and 13.0% of our total operating revenues, respectively.

Mocha and Other

Effective from June 27, 2022, the Grand Dragon Casino, a casino on Taipa Island, Macau, which focuses on mass market table games and which was previously reported under the Corporate and Other category, has been included in the Mocha and Other segment as a result of the change of terms of theright-to-use agreement for the Grand Dragon Casino.

In 2024, Mocha Clubs had an average of approximately 882 gaming machines in operation (excluding approximately 134 gaming machines at Altira Macau). Mocha Clubs focus primarily on general mass market patrons, includingday-trip customers, outside the conventional casino setting. Grand Dragon Casino had an average of approximately 16 gaming tables in 2024. For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from Mocha and Other amounted to US$122.6 million, US$117.7 million and US$76.4 million, representing 2.6%, 3.1% and 5.7% of our total operating revenues, respectively.

Philippines

In 2024, City of Dreams Manila had an average of approximately 2,278 gaming machines and 267 gaming tables. City of Dreams Manila also includes three branded hotel towers, several entertainment venues and features a wide selection of regional and international food and beverage offerings as well as extended retail shops. For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from City of Dreams Manila amounted to US$472.3 million, US$495.1 million and US$396.4 million, representing 10.2%, 13.1% and 29.4% of our total operating revenues, respectively.

Cyprus

Effective from June 12, 2023, with the soft opening of City of Dreams Mediterranean, the Cyprus Operations segment which previously included the operation of the temporary casino before its closure on June 9,

2023 and the licensed satellite casinos in Cyprus, has been renamed to City of Dreams Mediterranean and Other segment which includes the operation of City of Dreams Mediterranean and the licensed satellite casinos in Cyprus. We currently operate and manage City of Dreams Mediterranean in Limassol and three satellite casinos in Nicosia, Ayia Napa and Paphos in Cyprus. In 2024, our facilities in Cyprus had an average of approximately 104 gaming tables and 893 gaming machines. In addition, City of Dreams Mediterranean had approximately 500 guest rooms and suites as of December 31, 2024 and features a variety of premium dining outlets and luxury retail. For the years ended December 31, 2024, 2023 and 2022, operating revenues generated from our operations in Cyprus amounted to US$234.6 million, US$159.4 million and US$91.3 million, representing 5.1%, 4.2% and 6.8% of our total operating revenues, respectively.

Other

Corporate and Other

Corporate and Other category primarily includes general corporate costs, Grand Dragon Casino (included in Mocha and Other segment effective from June 27, 2022), our development projects in Sri Lanka and other countries, as well as our ski resort in Japan (disposed in late December 2022).

Summary of Financial Results

For the year ended December 31, 2024, our total operating revenues were US$4.64 billion, an increase of 22.9% from US$3.78 billion for the year ended December 31, 2023. Net income attributable to Melco Resorts & Entertainment Limited for the year ended December 31, 2024 was US$43.5 million, as compared to net loss of US$326.9 million for the year ended December 31, 2023. The change was primarily attributable to better performance in all gaming segments as well asnon-gaming operations, led by the continued recovery in inbound tourism to Macau in 2024 and the ramp up of operations following the opening of Studio City Phase 2 starting in April 2023 and City of Dreams Mediterranean inmid-2023, partially offset by higher operating costs for the increase in business activities.

Key events happened during the years ended December 31, 2024, 2023 and 2022 are summarized below. Therefore, our results of operations and financial position for the years presented may not fully comparable.

periods to and including the March 31, 2024 test date. MCO Nominee One paid a customary fee to all consenting lenders in relation to such consent and such consent has become effective upon receipt of the consent fee by the facility agent.

Key Performance Indicators (KPIs)

We use the following KPIs to evaluate our casino operations, including table games and gaming machines:

In the rolling chip market segment, customers purchase identifiable chips known asnon-negotiable chips, or rolling chips, from the casino cage, and there is no deposit into a gaming table’s drop box for rolling chips purchased from the cage. Rolling chip volume and mass market table games drop are not equivalent. Rolling chip volume is a measure of amounts wagered and lost. Mass market table games drop measures buy in. Rolling chip volume is generally substantially higher than mass market table games drop. As these volumes are the denominator used in calculating win rate or hold percentage, with the same use of gaming win as the numerator, the win rate is generally lower in the rolling chip market segment than the hold percentage in the mass market table games segment.

Our combined expected rolling chip win rate across our properties is in the range of 2.85% to 3.15%.

We use the following KPIs to evaluate our hotel operations:

Complimentary rooms are included in the calculation of the above room-related KPIs. The average daily rate of complimentary rooms is typically lower than the average daily rate for cash rooms. The occupancy rate and REVPAR would be lower if complimentary rooms were excluded from the calculation. As not all available rooms are occupied, average daily room rates are normally higher than revenue per available room.

In 2022, table games and gaming machines that were not in operation due to government mandated closures or social distancing measures in relation to COVID-19 outbreaks have been excluded, while room statistics also exclude rooms that were temporarily closed or provided to the staff members due to COVID-19 outbreaks.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Revenues

Our total operating revenues for the year ended December 31, 2024 were US$4.64 billion, an increase of US$863.0 million, or 22.9%, from US$3.78 billion for the year ended December 31, 2023. The increase in total operating revenues was primarily attributable to the improved performance in all gaming segments andnon-gaming operations, led by the continued recovery in inbound tourism to Macau in 2024 and the ramp up of operations following the opening of Studio City Phase 2 starting in April 2023 and City of Dreams Mediterranean inmid-2023.

Our total operating revenues for the year ended December 31, 2024 consisted of US$3.77 billion of casino revenues, representing 81.3% of our total operating revenues, and US$865.6 million ofnon-casino revenues. Our total operating revenues for the year ended December 31, 2023 consisted of US$3.08 billion of casino revenues, representing 81.5% of our total operating revenues, and US$697.9 million ofnon-casino revenues.

Casino. Casino revenues for the year ended December 31, 2024 were US$3.77 billion, representing a US$695.3 million, or 22.6%, increase from casino revenues of US$3.08 billion for the year ended December 31, 2023, primarily due to improved performance in all gaming segments.

Altira Macau. In the mass market table games segment, drop was US$535.8 million for the year ended December 31, 2024, representing an increase of 9.7% from US$488.2 million for the year ended December 31,

2023. The mass market table games hold percentage was 22.4% for the year ended December 31, 2024, decreasing from 22.7% for the year ended December 31, 2023. Average net win per gaming machine per day was US$255 for the year ended December 31, 2024, an increase of US$30, or 13.6%, from US$224 for the year ended December 31, 2023.

City of Dreams. City of Dreams’ rolling chip volume for the year ended December 31, 2024 of US$20.06 billion represented an increase of US$634.8 million, or 3.3%, from US$19.42 billion for the year ended December 31, 2023. The rolling chip win rate was 2.74% for the year ended December 31, 2024, which increased from 2.61% for the year ended December 31, 2023. Our expected range was 2.85% to 3.15%. In the mass market table games segment, drop was US$5.87 billion for the year ended December 31, 2024, which represented an increase of US$851.0 million, or 17.0%, from US$5.02 billion for the year ended December 31, 2023. The mass market table games hold percentage was 32.1% for the year ended December 31, 2024, increasing from 30.9% for the year ended December 31, 2023. Average net win per gaming machine per day was US$524 for the year ended December 31, 2024, an increase of US$60, or 12.9%, from US$464 for the year ended December 31, 2023.

Mocha and Other. In the mass market table games segment, drop was US$231.6 million for the year ended December 31, 2024, an increase from US$176.1 million for the year ended December 31, 2023. The mass market table games hold percentage was 16.8% for the year ended December 31, 2024, decreasing from 17.0% for the year ended December 31, 2023. Average net win per gaming machine per day for the year ended December 31, 2024 was US$274, a decrease of US$16, or 5.6%, from US$291 for the year ended December 31, 2023.

Studio City. Studio City has strategically repositioned itself to focus on the premium mass and mass segments, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024. Studio City Casino’s rolling chip volume was US$2.00 billion for the year ended December 31, 2024, a decrease from US$2.79 billion for the year ended December 31, 2023. The rolling chip win rate was 3.85% for the year ended December 31, 2024, which increased from 1.65% for the year ended December 31, 2023. Our expected range was 2.85% to 3.15%. In the mass market table games segment, drop was US$3.68 billion for the year ended December 31, 2024, an increase from US$2.87 billion for the year ended December 31, 2023. The mass market table games hold percentage was 30.6% for the year ended December 31, 2024, representing an increase from 27.3% for the year ended December 31, 2023. Average net win per gaming machine per day was US$431 for the year ended December 31, 2024, an increase of US$88, or 25.5%, from US$343 for the year ended December 31, 2023.

City of Dreams Manila. City of Dreams Manila’s rolling chip volume for the year ended December 31, 2024 was US$2.49 billion, representing an increase of US$518.8 million, or 26.4%, from US$1.97 billion for the year ended December 31, 2023. The rolling chip win rate was 3.57% for the year ended December 31, 2024, a decrease from 4.70% for the year ended December 31, 2023. Our expected range was 2.85% to 3.15%. In the mass market table games segment, drop was US$695.8 million for the year ended December 31, 2024, representing a decrease of US$88.1 million, or 11.2%, from US$784.0 million for the year ended December 31, 2023. The mass market table games hold percentage was 32.8% for the year ended December 31, 2024, representing an increase from 30.3% for the year ended December 31, 2023. Average net win per gaming machine per day was US$263 for the year ended December 31, 2024, an increase of US$14, or 5.8%, from US$248 for the year ended December 31, 2023.

City of Dreams Mediterranean and Other. City of Dreams Mediterranean officially opened to the public on July 10, 2023, after the soft opening in June. The Company continues to operate three satellite casinos in Cyprus in conjunction with City of Dreams Mediterranean. Rolling chip volume for the year ended December 31, 2024 was US$32.0 million, which increased from US$10.9 million for the year ended December 31, 2023. The rolling chip win rate was 0.24% for the year ended December 31, 2024, an increase from a rolling chip win rate of negative 6.17% for the year ended December 31, 2023. Our expected range was

2.85% to 3.15%. The significant fluctuation on the rolling chip win rate resulted from low gaming volumes in the rolling chip segment. In the mass market table games segment, drop was US$487.4 million for the year ended December 31, 2024, representing an increase of US$213.3 million, or 77.8%, from US$274.1 million for the year ended December 31, 2023. The mass market table games hold percentage was 22.9% for the year ended December 31, 2024, representing an increase from 21.5% for the year ended December 31, 2023. Average net win per gaming machine per day was US$340 for the year ended December 31, 2024, a decrease of US$10, or 2.8%, from US$350 for the year ended December 31, 2023.

Rooms. Room revenues (including complimentary rooms) for the year ended December 31, 2024 were US$422.6 million, representing an increase of US$84.3 million, or 24.9%, from room revenues (including complimentary rooms) of US$338.2 million for the year ended December 31, 2023. The increase was primarily due to the full year operations of the three hotels that opened at our properties in 2023, as well as the increased occupancy as a result of a year-over-year increase in inbound tourism to Macau.

The average daily rate, occupancy rate and REVPAR of each property are as follows:

Food, beverage and others. Food, beverage and other revenues (including complimentary food and beverage and entertainment services) for the year ended December 31, 2024 included food and beverage revenues of US$285.9 million and entertainment, retail and other revenues of US$157.1 million. Food, beverage and other revenues (including complimentary food and beverage and entertainment services) for the year ended December 31, 2023 included food and beverage revenues of US$208.9 million and entertainment, retail and other revenues of US$150.8 million. The increase of US$83.3 million in food, beverage and other revenues from the year ended December 31, 2023 to the year ended December 31, 2024 was primarily due to the increase in business activities at our properties in Macau and Manila as well as the ramp up of operations at City of Dreams Mediterranean and Other. In addition, we opened a cinema in Studio City in June 2024.

Operating costs and expenses

Total operating costs and expenses were US$4.15 billion for the year ended December 31, 2024, representing an increase of US$443.3 million, or 11.9%, from US$3.71 billion for the year ended December 31, 2023.

Casino. Casino expenses increased by US$489.7 million, or 24.1%, to US$2.52 billion for the year ended December 31, 2024 from US$2.03 billion for the year ended December 31, 2023, primarily due to an increase in gaming taxes, which increased as a result of increased gaming volumes and associated higher group-wide revenues, higher payroll expenses, higher marketing and promotional expenses as well as higher complimentaries to gaming customers.

Rooms. Room expenses, which represent the costs of operating the hotel facilities were US$127.9 million and US$87.6 million for the years ended December 31, 2024 and 2023, respectively. The increase was primarily due to the full year operations of the three hotels that opened at our properties in 2023, as well as increased occupancy, which wasin-line with higher room revenues for the year ended December 31, 2024.

Food, beverage and others. Food, beverage and other expenses were US$309.5 million and US$240.2 million for the years ended December 31, 2024 and 2023, respectively. The increase wasin-line with higher food, beverage and other revenues for the year ended December 31, 2024.

General and administrative. General and administrative expenses increased by US$80.6 million, or 16.5%, to US$568.7 million for the year ended December 31, 2024 from US$488.1 million for the year ended December 31, 2023, primarily due to an increase in payroll expenses, utilities, maintenance costs, marketing expenses and other general and administrative expenses for the full year operations of Studio City Phase 2 and City of Dream Mediterranean which opened in 2023 as well as to support the continuous ramp up of operations at our properties in Macau and Manila in 2024.

Payments to the Philippine Parties. Payments to the Philippine Parties were US$41.9 million and US$42.5 million for the years ended December 31, 2024 and 2023, respectively.

Pre-opening costs. Pre-opening costs were US$20.9 million and US$44.0 million for the years ended December 31, 2024 and 2023, respectively. Such costs relate primarily to personnel training, rental, marketing, advertising and administrative costs in connection with new orstart-up operations. Higherpre-opening costs for the year ended December 31, 2023 were due to the costs incurred for Studio City Phase 2 and City of Dreams Mediterranean which opened in 2023. Pre-opening costs for the year ended December 31, 2024 were mainly for House of Dancing Water and City of Dreams Sri Lanka.

Development costs. Development costs were US$5.4 million and US$1.2 million for the years ended December 31, 2024 and 2023, respectively, which predominantly related to marketing and promotion costs as well as professional and consultancy fees for corporate business development.

Amortization of land use rights. Amortization expenses for the land use rights continued to be recognized on a straight-line basis and were US$20.0 million and US$22.7 million for the years ended December 31, 2024 and 2023, respectively. The lower amount during the year ended December 31, 2024 was primarily due to the impairment on the land use right of Altira Macau made in 2023 which resulted a lower amortization thereafter.

Depreciation and amortization. Depreciation and amortization expenses slightly increased by US$0.9 million, or 0.2%, to US$521.6 million for the year ended December 31, 2024 from US$520.7 million for the year ended December 31, 2023. The slight increase was primarily due to the full year operations of Studio City Phase 2 and City of Dreams Mediterranean that opened in 2023 and the opening of the cinema in Studio City during the year ended December 31, 2024, partially offset by lower depreciation and amortization expenses as a result of the fully depreciated assets in our properties during the year and the asset impairments in Altira Macau in 2023.

Property charges and other. Property charges and other for the year ended December 31, 2024 were US$13.2 million, which primarily included the litigation claims related to junket player deposits, repairs and maintenance costs incurred as a result of a typhoons and remodeling, and asset impairments in Altira Macau. Property charges and other for the year ended December 31, 2023 were US$228.4 million, which primarily included the asset impairments in Altira Macau, the litigation claims related to junket player deposits and the costs incurred as a result of departmental restructuring, partially offset with the gain on disposal from lands in Japan.

Non-operating expenses, net

Netnon-operating expenses consist of interest income, interest expense, net of amounts capitalized, other financing costs, foreign exchange (losses) gains, net, (loss) gain on extinguishment of debt and othernon-operating income, net.

Interest income was US$15.8 million for the year ended December 31, 2024, as compared to US$23.3 million for the year ended December 31, 2023. The decrease in interest income was primarily due to lower bank interest income as a result of lower average bank balances during the year ended December 31, 2024.

Interest expense was US$486.7 million (net of amounts capitalized of US$0.3 million) for the year ended December 31, 2024, compared to US$492.4 million (net of amounts capitalized of US$25.9 million) for the year ended December 31, 2023. The decrease in interest expense (net of amounts capitalization) of US$5.7 million was primarily due to lower interest expense of US$61.5 million on the 2020 Credit Facilities as a result of the net repayments during the year ended December 31, 2024 and lower interest expense of US$11.1 million on the 2025 Studio City Notes as a result of tender offers and repurchases made during the years ended December 31, 2024 and 2023, partially offset by interest expense of US$40.3 million on the 2032 Senior Notes issued in April 2024 and lower amounts capitalized.

Other financing costs for the year ended December 31, 2024 amounted to US$7.4 million, compared to US$4.4 million for the year ended December 31, 2023. The increase in other financing costs was primarily due to an increase in loan commitment fees as result of the net repayments of the 2020 Credit Facilities during the year ended December 31, 2024 and entering the 2024 Studio City Senior Secured Credit Facility in November 2024.

Other income, net for the year ended December 31, 2024 amounted to US$3.8 million, compared to US$2.7 million for the year ended December 31, 2023.

Loss on extinguishment of debt for the year ended December 31, 2024 was US$1.0 million and was primarily associated with the 2025 Studio City Notes Tender Offer (2024). Gain on extinguishment of debt for the year ended December 31, 2023 was US$1.6 million and was primarily associated with the 2025 Studio City Notes Tender Offer (2023).

Income tax expense

Income tax expense for the year ended December 31, 2024 was primarily attributable to the Macau Complementary Tax for the year of US$7.8 million which mainly represented the expense provided in connection with the rejection of the application for 10 years Macau Complementary Tax exemption at Studio City for 2023 to 2032 received during the year ended December 31, 2024, payments in lieu of Macau Complementary Tax otherwise due by Melco Resorts Macau’s shareholders on dividends distributable to them by Melco Resorts Macau of US$7.0 million and Philippine withholding tax on dividends of US$5.5 million. The effective tax rate for the year ended December 31, 2024 was (340.37)%, as compared to (3.34)%, for the year ended December 31, 2023. Such rates differ from the statutory Macau Complementary Tax rate of 12%, where the Company’s majority operations are located, primarily due to the effects of expired tax losses, expenses for which no income tax benefit is receivable, income for which no income tax expense is payable, changes in valuation allowances, profits generated by gaming operations being exempted from Philippine Corporate Income Tax, different tax rates of subsidiaries operating in other jurisdictions and certain profits generated by gaming operations being exempted from Macau Complementary Tax for the years ended December 31, 2024 and 2023.

Our management currently does not expect to realize significant income tax benefits associated with net operating loss carryforwards and other deferred tax assets generated by our Macau, Philippine and Cyprus operations. However, to the extent that the financial results of our Macau, Philippine and Cyprus operations improve and it becomes more likely than not that the deferred tax assets are realizable, we will be able to reduce the valuation allowance related to the net operating losses and other deferred tax assets.

Net loss attributable to noncontrolling interests

Our net loss attributable to noncontrolling interests was US$71.5 million for the year ended December 31, 2024, compared to US$88.4 million for the year ended December 31, 2023. For the year ended

December 31, 2024, such net loss represented the share of Studio City’s expenses of US$51.2 million, City of Dreams Mediterranean and Other’s expenses of US$20.6 million, partially offset by City of Dreams Manila’s income of US$0.3 million attributable to the respective minority shareholders.

Net income/loss attributable to Melco Resorts & Entertainment Limited

As a result of the foregoing, we had net income attributable to Melco Resorts & Entertainment Limited of US$43.5 million for the year ended December 31, 2024, compared to net loss attributable to Melco Resorts & Entertainment Limited of US$326.9 million for the year ended December 31, 2023.

For a discussion of our results of operations for the year ended December 31, 2023 compared with the year ended December 31, 2022, see “Item 5. Operating and Financial Review and Prospects — A. Operating Results — Year Ended December 31, 2023 Compared to Year Ended December 31, 2022” of our annual report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on March 22, 2024.

Adjusted Property EBITDA and Adjusted EBITDA

Our Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) of the Company. The CODM uses Adjusted Property EBITDA for each segment as the measure of segment profit or loss to allocate resources to each segment and to compare the operating performance of the Company’s properties with those of its competitors as a way to assess performance. 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, integrated resort and casino rent, Corporate and Other expenses, and othernon-operating income and expenses.

The following table sets forth a summary of our Adjusted Property EBITDA for the years presented.

Altira Macau generated negative Adjusted Property EBITDA of US$1.9 million and US$1.3 million in 2024 and 2023, respectively.

Mocha and Other

Mocha and Other generated stable Adjusted Property EBITDA of US$27.0 million and US$27.3 million in 2024 and 2023, respectively.

City of Dreams generated Adjusted Property EBITDA of US$621.6 million in 2024, compared with US$576.3 million in 2023. The year-over-year increase in Adjusted Property EBITDA was a result of improved performance in all gaming segments andnon-gaming operations, led by the continued recovery in inbound tourism to Macau in 2024. The increase was partially offset by higher operating costs for the increase in business activities and an increase in staffing levels to enhance service quality and improve performance.

Studio City generated Adjusted Property EBITDA of US$341.2 million in 2024, compared with US$206.8 million in 2023. The year-over-year increase in Adjusted Property EBITDA was a result of improved performance in all gaming segments andnon-gaming operations, led by the continued recovery in inbound tourism to Macau in 2024 and the ramp up of operations following the opening of Studio City Phase 2 starting in April 2023. The increase was partially offset by higher operating costs for the increase in business activities and an increase in staffing levels to enhance service quality and improve performance.

City of Dreams Manila generated Adjusted Property EBITDA of US$181.1 million in 2024, compared with US$205.5 million in 2023. The year-over-year decrease in Adjusted Property EBITDA was primarily a result of softer performance in the rolling chip segment and unfavorable gaming mix.

City of Dreams Mediterranean and Other generated Adjusted Property EBITDA of US$50.5 million in 2024, compared with US$27.5 million in 2023. The year-over-year increase in Adjusted Property EBITDA was primarily a result of improved performance in mass market segments andnon-gaming operations, led by the ramp up of operations following the opening of City of Dreams Mediterranean inmid-2023.

The following table sets forth a summary of reconciliation of net income/loss attributable to Melco Resorts & Entertainment Limited to Adjusted EBITDA and Adjusted Property EBITDA for the years presented.

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, integrated resort and casino rent and other non-operating income and expenses.

Adjusted EBITDA and Adjusted Property EBITDA, which are non-GAAP financial measures, 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. Management uses Adjusted EBITDA and Adjusted Property EBITDA to measure the operating performance of our segments and to compare the operating performance of our properties with those of our competitors.

The Company also presents Adjusted EBITDA and Adjusted Property EBITDA because they are used by some investors as ways to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA and Adjusted Property EBITDA should not be considered as alternatives to operating income/loss as indicators of the Company’s 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 recognizes these limitations and uses 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 Company’s 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. The use of Adjusted Property EBITDA and Adjusted EBITDA has material limitations as an analytical tool, as Adjusted Property EBITDA and Adjusted EBITDA do not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historicalnon-GAAP financial measure to its most directly comparable GAAP financial measure.