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.
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.
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.
