Melco says that its operations in Macau are “stable”, with no upside or downside expectations and no increased spend to improve its market share, despite increasing competition.
In its earnings call on Thursday, Melco Resorts & Entertainment President Evan Andrew Winkler noted that “From where we are sitting coming out of Q4 and into this quarter, we are not seeing a ratchet up in terms of levels of spend directly on gaming programs from where we are now”.
The executive furthered that competition remains intense, noting “based on what we are seeing now, I think we are stable. I do not see anything that will bring us down in the near term, but I also do not see anything that will ratchet it up”.
Melco Chairman Lawrence Ho highlighted that the current level of competition is expected for the rest of the year, but that the company is “comfortable with our margin”.
City of Dreams
During the fourth quarter, Melco saw operating income at its City of Dreams property increase to $150.88 million, from $88.53 million in 4Q24, boosting adjusted property EBITDA to $193.71 million (from $140.08 million in 4Q24).
Total gross gaming revenue at the property rose by 14 percent yearly to $764 million, with mass GGR up 10 percent to $539 million.
VIP GGR was up by an impressive 36 percent to $200 million, while slot GGR fell 22 percent to $25 million.
VIP rolling chip rose by just 1 percent yearly, to $6.28 billion, with an 83 basis point increase in the win rate, to 3.18 percent. Mass table drop was up by 14 percent yearly to $1.74 billion, with mass table hold down 107 basis points to 31 percent.
At City of Dreams, the group is planning to “progressively start opening” its renovated Countdown Hotel this year. The group is also undergoing a “revamp of the retail area” at COD and pans to upgrade its F&B offerings.
Looking at its main entertainment attraction House of Dancing Water, the offering has caused “meaningful uptick in property visitation”, notes the Chairman. “We are seeing meaningfully good spend across non-gaming during and after the show. And even on our mass drop, from pre-May to post-May, we have seen a decent uptick,” highlighted Ho.
Winkler added that, for visitors coming from outside the property to see the show “a very small percentage go from that directly to gaming”. However, the executive says that “The benefit we have is it does introduce thousands of more people with each show to the property and to COD, to our product, to food and beverage.”
Studio City
Melco’s other Cotai Strip property, Studio City saw a positive increase in operating income during the quarter, rising from $23.02 million in 4Q24 to $29.56 million in 4Q25. This helped boost adjusted property EBITDA to $86.59million (from $81.24 million in the same quarter of 2024).
Total GGR was up 7 percent yearly in the quarter, to $343 million, with mass contributing $314 million, up by 10 percent yearly. Mass table drop rose by 4 percent to $932 million, while the table hold increased by 159 basis points to 33.7 percent.
Slots GGR fell slightly by 3 percent yearly to $28 million during the quarter.
The group doesn’t operate any VIP gaming at the property, with total GGR derived from mass and slots play.
Other Macau operations
Melco’s other Macau operations slid to a loss in 4Q25, with Altira Macau (located in Taipa) seeing an operating loss of nearly $6.3 million, a significant increase from the $2.5 million registered in 4Q24. Adjusted property EBITDA was negative, at nearly $3.5 million compared to negative $251,000 in 4Q24.
Total GGR at the property ffell by 9 percent yearly to $29 million, with a significant drop in mass GGR of 16 percent, to $24 million despite a 22 percent increase in mass table drop to $153 million. Mass table hold fell by 714 basis point to 15.6 percent. Slots GGR increased by 46 percent during the quarter, to $5 million.
The group closed its satellite casino operation at Grand Dragon Casino in September of 2025 and ceased operations at its Mocha Grand Dragon and Mocha Hotel Royal venue in the fourth quarter.
A total of 15 gaming tables were reallocated from Grand Dragon Casino to Studio City and 90 gaming tables were shifted to Studio City. Some 108 gaming machines from its closed Mocha venues were relocated to Studio City, with 137 going to City of Dreams and 100 shifted to Altira Macau.
The group now operates three Mocha Clubs – Inner Harbor, Golden Dragon and Sintra Hotel.
For the fourth quarter, the group’s Mocha segment generated $20 million in operating revenues, down from $29.3 million in 4Q24. Adjusted EBITDA was $4.4 million, down from $5.7 million in the same quarter of 2024. The gaming machine handle also dropped from $516.7 million in 4Q24 to $471.4 million, with a slightly increased win rate of 4.3 percent (compared to 4.1 percent in 4Q24).
