Melco beats estimates as analyst flags Macau share gains, stronger Philippines

Philippines

Viviana Chan

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May 4, 2026

Melco beats estimates as analyst flags Macau share gains, stronger Philippines

Seaport senior analyst Vitaly Umansky said the company delivered a ‘solid beat,’ with property EBITDA exceeding both consensus and the firm’s own estimates, supported primarily by contributions from Macau operations and City of Dreams Manila.

In Macau, Melco’s market share reached approximately 15.2 percent, representing an increase of more than 110 basis points quarter-on-quarter. The gain was attributed to improved utilization of electronic gaming machine inventory and targeted player acquisition strategies, the report noted.

Umansky added that EBITDA upside in the quarter was ‘largely from Studio City and the Philippines,’ highlighting the relative strength of those segments.

City Of Dreams Manila, Philippines, Belle Corp.

City of Dreams Manila exceeded expectations, with property EBITDA rising 24.4 percent year-on-year and 13.1 percent quarter-on-quarter. The improvement was supported by strong VIP performance, with volumes increasing by more than 30 percent year-on-year and gross gaming revenue from VIP play rising sharply on higher hold. The analyst noted, however, that the Philippines business may face further headwinds in the second quarter stemming from inflation driven by the conflict in the Middle East, and that new competition in Manila continues to weigh on the operation.

Despite the strong quarter, the report highlighted a competitive environment in Macau, with rising player reinvestment indicating continued pressure on margins. While management expects conditions to stabilize, Seaport said it does not anticipate a meaningful easing of competition in the near term.

For the second quarter, the analyst expects potential headwinds in the Philippines linked to rising energy costs, alongside ongoing geopolitical impacts on Cyprus operations. Seaport maintained its ‘Buy’ rating on Melco, citing what it described as an ‘undemanding’ valuation and a favorable risk-reward profile.

Melco Resorts & Entertainment has agreed to acquire certain trademarks and other intellectual property rights from its parent, Melco International Development Limited, for $375 million, a move aimed at securing full brand control while maintaining plans to resume dividends by the end of 2026, the company said in a filing and during its first-quarter earnings call.

The transaction involves the purchase of a subsidiary that owns the licensed trademarks, as well as other related intellectual property, domain names and rights previously used in Melco’s operations. The deal includes an initial payment of $300 million at signing, with the remaining balance due at closing.

The acquisition replaces an existing 10-year trademark licensing agreement that began on January 1st, 2024, under which Melco paid recurring fees. The first-quarter 2026 license fee totaled approximately $13.4 million, implying a purchase price of just under seven times the annualized fee, according to management.

Chairman and CEO Lawrence Ho said the purchase provides “full control of the IP” and allows the company to expand its brand “without any incremental cost.”

Chief Financial Officer Geoffrey Davis added that the transaction would result in “an immediate increase in EBITDA and cash flow,” as it eliminates ongoing royalty payments.

The acquisition was approved by independent members of the company’s Audit and Risk Committee, with support from an external valuation firm. Funding will come from a mix of internal resources and a credit facility drawdown, with management stating the additional debt will have a limited impact on leverage. Debt-to-EBITDA is expected to increase by less than half a turn, with levels projected to return to first-quarter 2026 levels before the end of 2026.

Dividend outlook remains intact

Despite the capital outlay, Melco said it remains committed to reinstating dividends.

“All things being equal, we would definitely like to resume the dividend by year-end,” Davis said, noting that timing will depend on factors including share price performance and broader capital allocation priorities.

The company has also continued share repurchases, buying back approximately $14 million worth of shares year-to-date, and recently approved a new $500 million buyback program, bringing total authorization to $710 million.

Retail revamp and REM hotel launch

Separately, Melco confirmed progress on several operational initiatives in Macau, including a retail overhaul at City of Dreams and the upcoming launch of its new REM hotel tower.

Ho said the REM project is “on track” for a phased opening in the early third quarter of 2026 and is expected to “represent a meaningful enhancement” to the group’s product offering.

The property will feature 149 rooms, primarily focused on one-bedroom suites, and is expected to add approximately $30,000 to $40,000 per day in operating expenses once opened.

Meanwhile, the company has begun a phased refurbishment of its retail areas at City of Dreams, which is expected to take 10 to 12 months. President Evan Winkler said the works would be carried out “zone by zone” with efforts to minimize disruption during the process.

Management indicated that both initiatives form part of a broader effort to enhance product quality and strengthen competitiveness in Macau’s integrated resort market.

Melco 1Q26 net income jumps 136% to $76.8M on mass growth

Viviana Chan

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May 3, 2026

0

Melco 1Q26 net income jumps 136% to $76.8M on mass growth

Melco Resorts & Entertainment reported strong first-quarter 2026 results, with net income more than doubling year over year and revenue growth driven by improved mass market performance across its core markets.

Lawrence Ho Melco Resorts — _{Melco Resorts & Entertainment Limited Chairman and CEO Lawrence Ho}

The company recorded net income attributable to shareholders of $76.8 million for the three months ended March 31st, 2026, representing a 136.3 percent increase from $32.5 million in the prior-year period. Total operating revenues rose 11 percent year over year to $1.37 billion, primarily supported by stronger mass market gaming.

“Melco Resorts’ Adjusted Property EBITDA grew by approximately 12 percent year over year to $381 million for the first quarter of 2026,” said Chairman and CEO Lawrence Ho.

Studio City Epic Tower, Melco Resorts, Macau

Macau remains core earnings driver

Macau continued to underpin group performance, with Property EBITDA in the market rising approximately 12 percent year over year to $334 million. Margins improved to around 28 percent.

“Our efforts continue to center on increasing flow-through and profitability while enhancing our competitive positioning with key growth initiatives,” said Chairman and CEO Lawrence Ho.

At City of Dreams Macau, total operating revenues increased to $734.6 million from $658.1 million a year earlier, supported by higher mass table volumes and improved non-gaming operations. Studio City also delivered growth, with revenues rising to $392.0 million and Adjusted EBITDA climbing to $111.7 million, driven by stronger mass market play.

Altira Macau returned to positive EBITDA during the quarter, reflecting improved underlying performance, while Mocha operations saw lower revenues following prior regulatory-driven closures.

International portfolio shows mixed performance

Melco’s international portfolio showed mixed performance. “In the Philippines, City of Dreams Manila exhibited solid performance despite heightened competition and continued industry headwinds. In Cyprus, results were impacted by the conflicts in the Middle East,” said Chairman and CEO Lawrence Ho.

In the Philippines, City of Dreams Manila reported solid results despite intensified competition and ongoing industry headwinds. Adjusted EBITDA rose 24 percent year over year to $37.4 million, supported primarily by improved rolling chip operations. Rolling chip volume rose approximately 31 percent year over year to $460.1 million, though the primary earnings driver was an unusually high win rate of 5.18 percent — well above the expected range of 2.85 to 3.15 percent — compared with 2.98 percent in the prior-year period.

However, mass market table drop declined slightly, indicating some variability across customer segments.

In Cyprus, performance at City of Dreams Mediterranean and its satellite casinos was impacted by external factors, particularly geopolitical tensions in the Middle East that affected tourism flows.

As a result, Adjusted EBITDA for the segment declined to $9.0 million from $11.6 million a year earlier, despite a modest increase in total operating revenues to $65.3 million. Lower visitation translated into reduced gaming volumes, although hold percentages improved during the period.

Sri Lanka emerged as a new contributor following the launch of City of Dreams Sri Lanka in 2025. The operation generated $14.3 million in total revenues during the quarter and delivered a marginal positive EBITDA of $0.3 million, reflecting early-stage ramp-up conditions. The property includes both casino operations and hotel management services, with performance expected to evolve as the market develops.

SkyCity said trading and visitation have been affected since March 2026, particularly due to rising fuel prices, with the most pronounced impacts seen at its Auckland and Adelaide properties. The company noted that conditions have created uncertainty for the remainder of the fiscal year, with consumer discretionary spending under pressure.

“Significant uncertainty exists on the breadth and duration of prevailing macroeconomic conditions,” the company said, adding that further deterioration could affect its outlook.

In response, SkyCity has implemented cost-saving measures and exceeded its previously announced NZ$10 million savings target for FY26. Additional initiatives are now being introduced across operations and corporate functions, with support from external advisors.

The revised guidance also reflects slightly higher costs related to timing movements and foreign exchange impacts.

Separately, the company provided an update on its asset monetization program, confirming it has entered into a non-binding agreement for the potential sale of the 99 Albert Street office building and investment properties on Victoria Street. It is also seeking investor interest in The Grand Hotel.

SkyCity added that New Zealand’s Online Casino Gambling Act 2026 took effect on May 1st, with licenses expected to be issued from early 2027.

Kangwon Land 1Q26 net profit falls nearly half despite revenue growth

South Korea

Viviana Chan

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May 3, 2026

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Kangwon Land 1Q26 net profit falls nearly half despite revenue growth

South Korea’s Kangwon Land reported a sharp decline in net profit for the first quarter of fiscal year 2026, even as gross gaming revenue climbed to KRW360 billion ($245 million), with surging selling, general and administrative expenses and a collapse in non-operating income identified as the primary drivers of the earnings shortfall.

The integrated resort, the only casino in South Korea legally permitted to admit local residents, posted net profit of KRW39.7 billion ($27 million) for the three months ended March 31st, 2026, down 46.8 percent year-on-year from KRW74.6 billion ($51 million) in the same period last year.

According to the financial update, total sales rose 3.4 percent year-on-year to KRW378.9 billion ($258 million), driven primarily by gaming revenue, which increased 4.3 percent to KRW330.4 billion ($225 million). Non-gaming revenue declined 1.8 percent to KRW48.6 billion ($33 million).

Operating profit fell 7.2 percent to KRW68.9 billion ($47 million), with the operating margin contracting to 18.2 percent from 20.3 percent a year earlier. SG&A expenses rose 17.6 percent year-on-year to KRW33.8 billion ($23 million), reflecting a voluntary retirement package payment of KRW2.4 billion ($1.6 million) and higher depreciation costs linked to ongoing safety reinforcement works in ground subsidence areas within the resort, which are expected to add approximately KRW2.7 billion ($1.8 million) per quarter through January 2028.

The steepest drag on net profit came from non-operating items. Financial profit dropped 81.9 percent to KRW4.2 billion ($2.9 million), reflecting a decrease in fair value gains on financial assets, while other profit swung to a loss of KRW19.2 billion ($13 million).

Kangwon Land has budgeted KRW145.4 billion ($99 million) in capital expenditure for fiscal year 2026, covering projects including a second casino construction, a VIP floor renovation, and an infinity pool at its Grand Hotel.

Playson heats up its collection with 4 Chili Amigos: Hold and Win, a Mexican fiesta-themed hit

Elsewhere

AGBrief Editorial

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May 3, 2026

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Playson heats up its collection with 4 Chili Amigos: Hold and Win, a Mexican fiesta-themed hit

Playson, a top digital entertainment provider, releases 4 Chili Amigos: Hold and Win – a lively Mexican-themed slot with two bonus modes (up to three features) and a 10,000x Super Jackpot in Super Bonus play.

With gameplay unfolding against the backdrop of harmonious mariachi music, the iconic Hold and Win Bonus Game with Chili Features is triggered by any violet, yellow or green Chili Bonus symbols, which combine with matching-coloured sombrero Pots sitting above the reels.

The combination of the chili peppers that land on a spin will determine one of the following features:

Multi Feature – Triggered by the violet Chili Bonus symbol, multipliers of up to 5x are added to empty cells or applied to current Multipliers for increased values.
Mystery Feature – Each yellow Chili Bonus that appears during the round awards random coins or Jackpot coins.
Collect Feature – Green Chili Bonus symbols that appear during the Collect Feature gather the value of all symbols currently in play, including any Multipliers attached to a coin or Chili Bonus symbol.

In a fiery boost to win potential, if a red Super Chili Bonus symbol appears on the reels during the Main Game, the Super Bonus Game can be triggered with an expanded 5×5 grid and random Multi, Mystery or Collect Chili Features, or their random combination.

During the round, the activated Super Chili Feature will land random Chili Bonus symbols until six are present, leading to a new feature or the enhancement of the active one in play.

In line with the energetic nature of the release, Jackpots can be triggered across both Bonus Games. Filling all 15 cells in the classic Bonus Game holds the key to the Grand Jackpot, standing at 3,000x, while fortunate players who fill all 25 cells during the Super Bonus Game will be awarded with an exclusive Super Jackpot at a scintillating 10,000x.

Special Piñata Symbols also enrich bonus play, which, if landed, transform into violet, green or yellow Chilli Bonus symbols, once more boosting the active feature or bringing an additional one into the action.

Playson’s 4 Chili Amigos: Hold and Win underlines the supplier’s expertise in advancing its portfolio with intriguing twists, developing fresh concepts for operators’ players to enjoy across regulated markets worldwide.

“4 Chili Amigos: Hold and Win builds on the popularity of the classic Hold and Win format by introducing a more layered and interactive feature set,” said Anton Ivannikov, CPO at Playson. “With the addition of the Piñata mechanic, multiple Chili Features and an enhanced Super Bonus Game, the title delivers a vibrant experience that keeps players engaged while offering strong win potential.”

3 Oaks Gaming charms slots portfolio with Lucky Apple x1000

Elsewhere

AGBrief Editorial

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May 3, 2026

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3 Oaks Gaming charms slots portfolio with Lucky Apple x1000

3 Oaks Gaming has released Lucky Apple x1000, a magical scatter pays slot featuring cascading mechanics and multipliers worth up to x1000. Set in an enchanted forest, the 6×5 slot invites players to join a fair maiden as she delivers rewarding gameplay.

Wins are triggered by landing eight matching symbols anywhere on the reels, while the Cascading Reels mechanic will see winning symbols removed, and new icons tumble down onto the reels to further heighten player anticipation with every spin.

Red Apple Symbols can appear randomly, either during the reel or assisted by the character, revealing multipliers from x2 to x1000. Any multipliers in view combine and are applied to the total win after the cascade.

Free Spins enhance the experience, with every multiplier from winning spins contributing to a growing Total Multiplier across the feature. In certain markets, players can also access the Bonus Shop, which offers two Free Spins options, including an upgraded round where multipliers range from x10 to x1000.

Lucky Apple x1000 captivates with its fairy-tale allure and epic 20,000x max win, injecting vibrant energy into 3 Oaks Gaming’s portfolio.

“Lucky Apple x1000 highlights our approach to combining strong themes with proven mechanics that resonate with players,” said Krasimir Pankovski, Sales Director at 3 Oaks Gaming. “By bringing together cascading reels, high-value multipliers and a cumulative Free Spins model, we’ve created a title designed for both engagement and longevity. The addition of the Bonus Shop adds further flexibility, supporting player choice while helping operators maximise performance as we continue to grow a competitive portfolio.”

ENJOY levels up hit franchise in Fire Express 2: Hold and Win

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AGBrief Editorial

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May 3, 2026

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ENJOY levels up hit franchise in Fire Express 2: Hold and Win

ENJOY has expanded one of its successful franchises with the release of Fire Express 2: Hold and Win, a high-energy new title that builds on the success of the original with upgraded features and enhanced Hold and Win gameplay.

The 5×3, 5 payline slot retains the familiar high-speed train theme, combining classic slot visuals such as fruits, bars, bells and coins, with a bright metallic aesthetic and fiery special symbols.

A standout addition in the base game is the Stacked Reels feature, which can copy the full result of the first reel onto the others, turning standard spins into powerful line hits. Bonus and Collect symbols that land without triggering the feature are gathered into a glowing train above the reels.

When the Hold and Win Bonus Game begins, players start with three respins. Registering any new Bonus, Collect, or Multiplier symbol resets the counter, extending the feature. Collect symbols gather all visible coin values into one prize, while multipliers from x2 to x10 can instantly boost occupied cells.

Five fixed Jackpots add further appeal, with Mini, Minor, Maxi, Major, and the Grand Jackpot worth up to 5000x the total bet awarded for filling all 15 positions on the grid.

The Extra Bonus feature can randomly trigger from the collected symbol train, starting the bonus round with additional symbols already in place. Bonus Buy options also allow direct access to the feature with different starting setups.

Fire Express 2: Hold and Win combines fast-paced gameplay, rewarding mechanics, and engaging visuals, making it a strong new addition to ENJOY’s growing content portfolio.

Taras Stepovyi, Product Owner at ENJOY Gaming, said: “With Fire Express 2: Hold and Win, our goal was to build on the success of an established player favourite and evolve it into an even stronger commercial product with broader appeal and greater long-term value for operators. We introduced features such as Stacked Reels, upgraded multiplier mechanics and visible bonus progression to increase engagement, extend session time and create more frequent high-impact moments, while preserving the core identity that made the original Fire Express so popular.”

INSPIRE fuels ‘NAVER Happybean Double Donation’ campaign during May

South Korea

AGBrief Editorial

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May 3, 2026

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INSPIRE fuels ‘NAVER Happybean Double Donation’ campaign during May

INSPIRE Entertainment Resort announced that it will run the ‘NAVER Happybean Double Donation’ campaign throughout May.

The NAVER Happybean Double Donation campaign follows a double-matching format, where INSPIRE contributes an equal amount to donations made by online participants, effectively doubling the total contribution. The campaign aims to raise a total of KRW 54 million, which will be used to support underserved groups, including children, women, seniors, and abandoned animals.

Donations can be easily made through the NAVER Happybean online platform. In addition, INSPIRE will create multiple onsite touchpoints to encourage visitors, including QR codes placed in lobby waiting areas and campaign posters displayed on in-room TVs, allowing guests to engage during their stay. Donation receipts will also be issued for year-end tax deductions and applicable tax benefits.

A total of nine donation funds will be available as part of the campaign, allowing participants to choose their preferred cause. Notably, the beneficiary organizations were selected through a vote by INSPIRE employees, adding further meaning to initiative. Key beneficiaries include the Korea Pediatric Cancer Foundation, INCA Happy Dog World, Miral Welfare Foundation, HelpAge Korea, Youth Voice, World Friends, Aitteul Children Care Center and G Foundation.

An INSPIRE official said, “In celebration of Family Month, we planned this campaign to promote meaningful giving together with our guests.” The official added, “INSPIRE will continue to support local communities and vulnerable groups through various forms of sustainable social contribution activities.”

Meanwhile INSPIRE has been actively engaged in employee-driven CSR initiatives, including the Happiness Box volunteer program supporting children at risk of food insecurity during the Lunar New Year holiday. The resort also continues to foster community engagement through various programs such as resort experience initiatives for local children, as well as educational and scholarship support.

Blueprint Gaming hooks players with explosive tackle boxes in Fishin’ Frenzy

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AGBrief Editorial

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May 3, 2026

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Blueprint Gaming hooks players with explosive tackle boxes in Fishin’ Frenzy

Blueprint Gaming revisits its legendary lakeside scene in Fishin’ Frenzy Lure ‘Em In, where special tackle boxes unlock bonus riches and a shot at the 10,000x max win.

With releases from the industry-renowned franchise consistently ranking among the UK studio’s standout performers, the latest iteration looks set to build on the impressive momentum, offering operators’ lobbies a compelling, feature-rich addition.

Coloured Tackle Boxes Spark the Action

At the heart of the action lies three coloured tackle boxes, which collect matching blue, red, and green scatters if they land on a spin. Immediate entry to the bonus game is guaranteed if three bonus scatter symbols land with at least one modifier active.

Blue Box: Cast and Catch Respins

Triggering the bonus game via the blue tackle box will unlock the Cast and Catch modifier. During the round, landing wilds will guarantee a respin, where wilds and prize symbols remain in place while other symbols respin.

Red Box: Golden Catch Multipliers

If the Golden Catch modifier is activated via the red tackle box, special golden wild symbols are added to the reels, which accumulate all cash prize symbols in view before boosting the total win with a multiplier of up to 5x.

Green Box: Take the Bait Prizes

The Take the Bait enhancement, triggered by the green tackle box, adds special cash prize symbols to the reels, represented by a can of worms. When a can of worms symbol lands, all cash prize values in view are collected by any fisherman symbol.

Multi-Modifier Mega Wins

In a sizeable boost to win potential, up to three Lure ‘Em In enhancements can be active during the bonus game at one time, with two active tackle boxes guaranteeing super free games, and three paving the way to the mega free game, where the chance to secure the 10,000x max win comes into play.

Fisherman Trails for Extra Spins

Immersive trails have become a staple in Blueprint bonus games, and the studio has continued this popular trend with its latest release. Every four fisherman symbols that are collected during the feature will award five additional free spins, with the standard cash prize value in place increased to a maximum of 50x.

Jo Purvis, Director of Marketing, PR and Events at Blueprint Gaming, said: “Fishin‘ Frenzy remains one of our most iconic and best-performing franchises, and with Lure ‘Em In, we have introduced exciting new mechanics to elevate the experience even further. The addition of dynamic tackle box modifiers and the ability to combine multiple enhancements brings greater variety and anticipation to the bonus. We are confident this latest instalment will resonate strongly with operators and players, continuing the franchise’s legacy as a standout performer.”

For those with an eye on a particular catch to remember, the Express Bet can be triggered at any time during gameplay for 0.5x the base stake, doubling the chances of triggering the bonus game.

Following hot on the heels of Game of Thrones, Fishin’ Frenzy Lure ‘Em In by Blueprint Gaming reinforces Blueprint’s ability to cleverly craft fresh-themed, bountiful titles for players to enjoy worldwide.