Melco Resorts Q2 Net Income Rises 32 Percent Despite Lower Revenue

Melco Resorts & Entertainment reported higher Q2 2026 net income even as weaker Macau gaming activity pulled group revenue and property EBITDA lower. Net income attributable to Melco Resorts reached $22.7 million, up 32% year on year.

Good to Know

• Q2 revenue fell 6% to $1.25 billion.
• Adjusted property EBITDA declined 20% to $303.8 million.
• Cyprus EBITDA climbed 60% while City of Dreams Macau recorded weaker gaming results.

Macau Weakness Offsets Better Cyprus Results

Lower costs helped Melco Resorts increase net income despite softer revenue. Operating costs and expenses fell to $1.12 billion from $1.20 billion, while operating income edged higher to $127.8 million. Casino revenue declined 5.5% to $1.04 billion.

City of Dreams Macau accounted for much of the pressure. Revenue fell 11% to $632.2 million and adjusted EBITDA dropped to $147.8 million from $225.6 million. Rolling chip volume decreased to $5.16 billion, while the rolling chip win rate fell to 2.71%, below the expected 2.85% to 3.15% range. Mass table drop remained flat at $1.75 billion.

Chairman and CEO Lawrence Ho said:

“Despite near-term headwinds that are reflected in our second-quarter results, 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.”

Melco is also upgrading City of Dreams Macau. REM, the renovated 330-room former Countdown hotel, has started a phased opening during Q3 2026. Melco previously budgeted about $125 million for the project.

Results outside Macau were more mixed but provided some support. City of Dreams Mediterranean and the Cyprus satellite casinos increased revenue 13% to $82.0 million. Adjusted EBITDA climbed 60% to $19.9 million as mass market table performance improved.

City of Dreams Manila revenue slipped 1% to $97.3 million, yet adjusted EBITDA increased 9% to $30.9 million. Rolling chip volume roughly halved to $342.6 million, although a higher win rate helped offset weaker volume.

Studio City Macau also recorded softer numbers. Revenue fell 4% to $371.5 million and adjusted EBITDA decreased 9% to $95.5 million as mass table activity weakened.

Melco entered Q3 with $1.04 billion in cash and bank balances and $7.05 billion in debt. Available liquidity stood at about $2.80 billion at June 30.

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