Melco Resorts & Entertainment is heading into mid-2025 with momentum, reporting stronger performance in Macau, growth in Cyprus, and a clearer strategy for its operations in the Philippines and Sri Lanka.
Good to know
- Melco’s Macau market share climbed to 15.7% in Q1 2025, with strong property EBITDA growth.
- City of Dreams Manila is up for sale, with potential buyers already in discussions.
- Cyprus property showed 10% year-over-year EBITDA growth despite regional challenges.
Melco CEO Lawrence Ho shared updates on the company’s progress during a call with analysts, highlighting what he called “a solid set of results” for the first quarter. The company, which runs resorts in Macau, Manila, and Cyprus, is also preparing to launch operations in Sri Lanka later this year.
Macau remains the primary engine for the group’s performance. Melco’s market share there rose from 14.7% in Q4 2024 to 15.7% in Q1 2025 and remained stable through April. Quarter-over-quarter property EBITDA in the region increased by 32%, helped by record mass drop figures at City of Dreams and Studio City. Ho noted that Golden Week traffic continued that momentum into May.
New competition arrived in the form of the Londoner Grand, which opened in April. But Ho dismissed concerns about its impact, saying, “I don’t think there’s been any cannibalization … or material impact. I think we’ve found our groove again and rediscovered our identity.”
Melco also reintroduced its famous “House of Dancing Water” show at City of Dreams Macau, which Ho said has boosted daily visitor numbers by around 4,000. Along with that, the company is revamping its retail zones and updating entrances at both City of Dreams and Studio City to drive even more traffic.
Renovations at Studio City are now complete, and the return to growth in property EBITDA reflects the effect of those upgrades, according to Ho. He added, “We’re firing on all cylinders in Macau.”
Manila Restructuring and Focus on Expansion
In contrast, Manila faces more headwinds. With growing competition in the Philippines, Melco is adjusting its cost base and reviewing marketing efforts at City of Dreams Manila to improve EBITDA contributions. At the same time, the company continues to seek a buyer for the resort, with non-disclosure agreements already signed and a shortlist of bidders to be drawn up soon.
“Over time we will whittle down that group to a short list for the bidding process,” Ho said. The sale would allow Melco to pursue opportunities in Thailand if the country opens up to integrated resorts.
In Cyprus, City of Dreams Mediterranean posted 10% year-over-year EBITDA growth for Q1. Despite challenges linked to conflicts in Ukraine and the Middle East, Ho said the resort is “starting to ramp up,” with bookings for summer already tracking well ahead of last year’s numbers.
The company also expects to open City of Dreams Sri Lanka in Q3. Preparations are underway, with the new venue set to expand Melco’s geographic reach.
Ho wrapped up by talking about a shift in spending strategy. After years of aggressive reinvestment post-Covid, he said the company is now focused on maintaining discipline.
“Post-Covid, we started slow. Then last year, we’d gone overboard with regards to reinvestment,” Ho explained. “We offer a premium product, so we should never be the most competitive and most aggressive in terms of marketing schemes.”
He pointed to the high quality of Melco’s hotels and attractions, such as the family water park at Studio City, as key assets that should speak for themselves. Looking ahead, the company aims to improve margins and avoid overextending itself.
Chinese government policy is also expected to support further gains. According to Ho, “Chinese policy is the most important thing to us, even more than the Chinese economy.” He welcomed recent efforts by Beijing to stimulate consumer spending and domestic travel, both of which could benefit Melco properties.
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