Melco has announced its second quarter results, with operating revenues rising by 15 percent yearly to $1.13 billion, as property EBITDA rose a stunning 25 percent yearly to $124.7 million.
Seaport Research Partners note that the results were ‘stronger than forecast’, highlighting cost controls and player reinvestment, as well as a strong VIP hold.
However, considering the group’s overall portfolio, analyst Vitaly Umansky notes that the results from its non-Macau operations are ‘all the more reason to divest those assets’.
Melco has been actively encouraging the sale of its stake in City of Dreams Manila – however no buyers have publicly lined up for the offload.
Melco saw net income hit $17.2 million during the second quarter, a stark drop from the same period of 2024, also resulting in a net loss for noncontrolling interests of $7.8 million – still better than the same period of last year.
Speaking of the results, Melco Chairman and CEO Lawrence Ho noted that “Macau Property EBITDA grew 35% year-over-year and 13% quarter-to-quarter. Gaming volumes and revenue increased, with City of Dreams Macau and Studio City setting new records in mass market table games revenue. This was further supported by increases in cost efficiencies leading to stronger margins. We are confident that the strategic initiatives we implemented have set us up on a solid foundation for continued growth”.
Looking to the Philippines, the executive noted that the “heightened competitive environment continues to impact performance, we have been implementing a variety of initiatives to improve performance and reduce cost”.
Looking ahead, City of Dreams Sri Lanka opens today, with the executive noting that it “represents the first integrated resort in Sri Lanka and South Asia, and we are excited for the opportunities this presents for us”.
