Executives at Melco Resorts & Entertainment voiced confidence in the group’s outlook as Macau’s gaming recovery gathered pace, saying the company is seeing “sustained momentum” into the fourth quarter following solid third-quarter results and ongoing upgrades to its flagship properties.
Founder, Chairman and CEO Lawrence Ho said Melco’s Macau operations “delivered solid growth” in the July–September period, with property EBITDA rising 21 percent year-on-year despite a $12 million hit from a September typhoon.
“Our momentum in Macau is continuing, and we did not see a slowdown after the holidays,” Ho told investors. “City of Dreams recorded its highest monthly mass tables GGR ever in October.”
Ho said Melco remains focused on elevating its product offerings and customer experience. “We’ve introduced new premium experiences such as the Signature Clubhouse at City of Dreams and expanded high-limit gaming areas at Studio City,” he said. “After COVID, we’ve come out of that funk and rediscovered our swagger.”
He added that the group’s long-term investment program — including the renovation of the Countdown Hotel at City of Dreams, set to reopen in the third quarter of 2026 — will “bring a one-of-a-kind experience to Macau and the region.”
President Evan Winkler described the competitive environment in Macau as “stable but rational,” saying Melco continues to hold the line on reinvestment while fine-tuning its marketing programs. “We didn’t see a big shift upward in promotional activity,” he said. “We’ll continue to monitor and respond, but the market is competitive without being irrational.”
CFO Geoffrey Davis said Melco’s balance sheet was in “a strong position,” with $2.6 billion in available liquidity and $1.6 billion in cash as of September 30. “We continue to prioritize debt reduction,” he said, noting that Melco repaid $180 million in the third quarter and an additional $180 million since October. “We have no material debt maturing in 2026.”
Davis said the company plans to take “a more balanced approach” to capital management next year. “While debt reduction will remain a priority, we aim to potentially recommence the quarterly dividend by the end of next year,” he said.
The company’s third-quarter adjusted property EBITDA rose 18 percent year-on-year to about $380 million, supported by strong performances in Macau, Manila and Cyprus. Property EBITDA margins in Macau held steady at 29 percent, with daily operating expenses stable at around $3 million.
Ho said Melco’s expansion outside Macau is gaining traction. “City of Dreams Mediterranean in Cyprus had its best quarter ever, while our Philippines property delivered strong sequential growth,” he said. “In Sri Lanka, it’s still early days, but we’re optimistic about the market’s long-term tourism potential.”
Winkler added that City of Dreams’ turnaround reflects “hundreds of improvements” since the pandemic. “It’s not one silver bullet — it’s a lot of small steps that together rebuilt our leadership in product and service,” he said.
Ho summed up Melco’s outlook with cautious optimism: “We’re seeing healthy market trends, disciplined competition, and growing confidence across our properties. The best is yet to come.”
