Weakness at City of Dreams Macau weighed on Melco Resorts & Entertainment’s second-quarter results, with group revenue falling 6 percent year over year to $1.25 billion and adjusted property EBITDA declining approximately 20 percent to $303.8 million.
Melco attributed the revenue decline primarily to softer rolling-chip and mass-market table gaming, as well as weaker overall non-gaming operations.
Net income attributable to Melco increased approximately 32 percent to $22.7 million. However, adjusted net income fell approximately 75 percent to $23.2 million, indicating weaker underlying performance.
The statutory profit comparison was affected by substantially higher pre-opening costs and property charges recorded in the second quarter of 2025.
Melco Chairman and CEO Lawrence Ho said the near-term headwinds were reflected in the quarterly results but maintained a positive outlook for Macau.
“Our priorities continue to be to deepen customer engagement, attract high quality visitation, and continue investing in our properties to anticipate the changing needs of our guests,” Ho said.
City of Dreams Macau recorded an 11 percent decline in operating revenue to $632.2 million. Adjusted EBITDA fell approximately 34.5 percent to $147.8 million, primarily due to softer rolling-chip and mass-market table gaming.
Rolling-chip volume decreased 6 percent to $5.16 billion, while the win rate fell to 2.71 percent from 3.93 percent. The latest result was below Melco’s expected range of 2.85 percent to 3.15 percent.
Mass-market table drop remained unchanged at $1.75 billion, while hold slipped to 29.8 percent from 30.5 percent. Gaming-machine handle increased to $1.20 billion.
Studio City EBITDA falls 9%
Studio City also recorded weaker results, with operating revenue declining approximately 4 percent to $371.5 million and adjusted EBITDA falling about 9 percent to $95.5 million.
Melco attributed the decline primarily to softer mass-market table gaming. Mass-market table drop decreased approximately 8 percent to $884.1 million, although hold improved to 36.3 percent.
Altira Macau improved on stronger mass-market performance. Revenue rose approximately 20 percent to $33.9 million, while adjusted EBITDA reached $2.2 million.
Mocha revenue fell approximately 46 percent to $15.1 million. The prior-year comparison included Grand Dragon Casino, which closed in September 2025. Melco now operates three Mocha Clubs following government-mandated closures.
Manila improves, Mediterranean rebounds
City of Dreams Manila generated revenue of $97.3 million, broadly stable from the prior-year period, while adjusted EBITDA increased approximately 9 percent to $30.9 million.
The EBITDA improvement came despite weaker gaming volumes. Rolling-chip volume declined approximately 51 percent to $342.6 million, while the win rate increased to 3.67 percent from 2.05 percent.
City of Dreams Mediterranean and Melco’s three satellite casinos in Cyprus delivered stronger results as disruptions to regional travel eased.
Revenue increased approximately 13 percent to $82.0 million, while adjusted EBITDA rose 60 percent to $19.9 million. Melco attributed the improvement primarily to stronger mass-market performance.
Other operations, including the City of Dreams Sri Lanka casino and management services for its Nüwa hotel, generated $16.9 million in revenue and $3.5 million in adjusted EBITDA.
Melco said its new REM hotel at City of Dreams Macau will begin a phased opening in the third quarter of 2026.
