Gaming operator Melco Resorts & Entertainment posted a strong set of second-quarter results, led by robust growth in Macau and preparations for its landmark opening in Sri Lanka, as executives expressed cautious optimism over continued momentum across Asia despite heightened regional competition.
“We achieved a strong set of results for the second quarter of 2025 in Macau”, said Melco Chairman and CEO Lawrence Ho during the company’s earnings call last Thursday. “Macau property EBITDA grew by 35 percent year-over-year and 13 percent quarter-on-quarter,” he noted, pointing to record gaming volumes and rising visitation.
“Mass table games revenue at both City of Dreams and Studio City reached all-time highs.”
The executive said that average daily property visitation at Melco’s Macau resorts hit record levels in July, while revenue from non-gaming attractions such as the recently relaunched House of Dancing Water show helped fuel overall growth.
The performance in Macau contrasts with softer results in the Philippines and geopolitical disruptions in Cyprus, though management said both markets are stabilizing. Meanwhile, all eyes have been on the grand opening of City of Dreams Sri Lanka — a major bet on South Asia’s emerging tourism and gaming sector.
“This is the first integrated resort in South Asia,” Ho told analysts. “We’re effectively creating a whole new industry. We’re very excited — not just about Sri Lanka, but also about what it means for access to the Indian premium segment.”
Evan Winkler, Melco’s President, added that while the property in Colombo is expected to ramp up gradually, it represents a “paradigm shift” for the region. “We’re offering a true integrated resort experience in a market that’s only known outdated stand-alone casinos,” he said.
Macau shines amid competitive jostling
In Macau, Melco continues to invest in product upgrades and customer experience, including a full renovation of the Countdown Hotel, set to reopen as a luxury all-suite tower in 2026. “It’s going to be a super unique product that doesn’t exist anywhere else in the world”, Ho said.
The group is also revamping its casino floors to appeal to premium mass customers, with Winkler detailing an “unprecedented number of projects” underway — from high-limit slot lounges to experiential spaces with simulators, jukeboxes, and bespoke food offerings.
Despite rival operators stepping up marketing spend to regain market share, Melco executives insisted they are staying the course with a disciplined reinvestment strategy.
“Macau is always going to be competitive,” said Ho. “But we prefer to compete on product and service — not who’s giving the biggest deals.”
Winkler added: “We’re trying to be more strategic in where we place our marketing dollars, using better data to reward the right customers. That’s how we’ve kept our reinvestment down while still driving growth.”
Melco also confirmed the upcoming closures of the Grand Dragon Casino and three Mocha Clubs, a move aimed at consolidating operations amid an evolving regulatory and economic landscape, namely the Macau SAR’s decision to shut any satellite casinos not owned by operators.
“We’re quite excited about the satellite closures,” Ho said. “It’s an opportunity for us to optimize our gaming units. For example, Altira will become the only casino in Taipa, giving us a stronger positioning.”
Melco’s group-wide adjusted property EBITDA rose 25 percent to $378 million in the second quarter, while Macau alone delivered a 29.2 percent EBITDA margin — the second-highest on record.
“We’re staying very disciplined on costs”, said CFO Geoff Davis. “Daily OpEx in Macau was reduced to about $3 million — better than our target — while we maintained margins and market share.”
The House of Dancing Water show, which reopened in May, contributed positively to earnings, though Winkler admitted more could be done to convert audiences into gaming customers. “It brings in nearly 4,000 guests per night and has a huge halo effect”, he said. “But we see opportunities to better capture that traffic on the gaming floor.”
Melco’s liquidity remains healthy, with $2.3 billion in available funds. It used some of that to repurchase $120 million in shares in the second quarter, citing favorable equity market conditions.
The Philippines and Cyprus stabilize
While Macau is booming, Melco’s Philippines operations continue to face a “heightened competitive environment,” executives said. The group has responded with cost cuts and more selective marketing.
“We’ve implemented rationalization measures and are already seeing higher profitability”, said Ho. Geoff Andres, Property President in Manila, added that “July saw stabilization and new junket partners, setting us up for a better second half.”
In Cyprus, where the June conflict between Iran and Israel weighed on tourism, Ho said recovery has been quicker than expected. “GGR has now surpassed pre-war levels,” he said. “We’re cautiously optimistic for the rest of the summer.”
Despite macro uncertainties and intensifying competition in Asia’s gaming sector, Melco executives are confident in their strategy of product-led growth and disciplined financial management.
“The Chinese economy appears to be stabilizing, and people are spending again”, Ho said. “That sets us up for a great third quarter.”
Winkler echoed that sentiment. “We feel very good about the market and our positioning”, he said. “We’re not chasing every deal. We’re investing in long-term value — and it’s paying off.”
