Good morning. In Macau’s competitive arena, spending less may be harder than earning more. CBRE expects Melco’s daily operating costs to remain around $3.4 million, even after a spending review, while elevated expenses and promotional reinvestment weigh on margins and extend the deleveraging timetable. Galaxy is playing from a much stronger hand, increasing its interim dividend while holding about $4.6 billion in net cash. Success Universe, meanwhile, expects its first-half loss to widen by between 50 percent and 70 percent after the closure of gaming operations at Ponte 16.

What you need to know

Melco is unlikely to deliver meaningful Macau cost cuts amid elevated competition, promotional spending and operating expenses.
Galaxy’s higher interim dividend points to sustainable cash flow despite weaker 2Q26 EBITDA and continued development spending, CBRE says.
Success Universe expects its 1H26 loss to widen by 50–70% year-on-year after the closure of the casino at Macau’s Ponte 16 resort.

On the radar

Melco reveals REM Hotel interiors ahead of October grand opening.
Newport World Resorts operator reports 80% increase in 1H26 profit.
DigiPlus taps Teneo for strategic advice amid overseas gaming push.
Macau August GGR forecast trimmed to 4% growth: Citigroup.

AGB Intelligence

MACAU

Macau competition limits Melco’s scope for meaningful cost cuts

CBRE expects Melco Resorts & Entertainment to have limited scope for meaningful cost reductions in Macau, with daily operating expenses remaining near $3.4 million despite the opening of REM Hotel. The brokerage said intense competition, higher operating expenses and continued promotional investment contributed to Melco’s second-quarter earnings miss. It also extended its forecast for the operator’s debt-reduction timetable by one year, with net debt equivalent to 4.8 times adjusted EBITDA.

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Written by AGBrief Editorial The AGBrief Editorial Team is a group of contributors living around the world that are connected to Asia Gaming Brief. They are active members in pursuing the sources of our news, making them reliable and accurate for our readers. More from AGBrief Editorial →