Melco Returns to Profit as Operating Income Jumps, Manila Strategy Review Ends

Melco Resorts & Entertainment Ltd recorded a clear earnings rebound at the end of 2025, supported by stronger casino activity in Macau and steady contributions from regional properties.

Good to Know

• Fourth quarter net income reached US$60.6 million after a loss in 2024.
• Revenue growth came mainly from rolling chip and mass market table play.
• Review of strategic options for City of Dreams Manila has been discontinued.

Net income improvement arrived alongside an 8.6 percent rise in quarterly operating revenue, which climbed to just over US$1.29 billion. Casino revenue alone totaled nearly US$1.07 billion, increasing 9.6 percent year on year.

“The increase in total operating revenues was primarily attributable to the improved overall rolling chip and mass market table games performance,” the company stated.

Operating income rose 51 percent to US$146.4 million, while adjusted property EBITDA reached US$331.3 million, up 12.2 percent from the prior year period.

Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts, said: “2025 was a year of growth and recovery, supported by disciplined cost management and margin expansion.”

Macau Performance Anchors Financial Recovery

Macau delivered the strongest gains across the portfolio. Full year property EBITDA in that market increased 25 percent to US$1.23 billion, driven by higher gaming volumes and improved margins.

City of Dreams Macau generated US$695.7 million in quarterly revenue, rising from US$591.1 million a year earlier. EBITDA climbed to US$193.7 million.

Studio City also posted growth, producing US$360.4 million in revenue and US$86.6 million in EBITDA.

“We remain focused on executing our growth priorities and are energised by the pipeline of new initiatives launching in the coming year, each designed to further differentiate our offerings,” Mr Ho said.

Costs Rose During Event Heavy Quarter

Large scale events and operational adjustments increased expenses during the period, though underlying demand remained solid.

Geoffrey Davis, executive vice president and chief financial officer, said: “primarily due to events including the China National Games, Studio City’s 10th anniversary, and the Macau Grand Prix”.

He added: “Excluding these fourth-quarter events, as well as House of Dancing Water [show], Macau opex was approximately US$3.1 million per day.”

Accounting adjustments tied to a junket settlement also affected results.

“EBITDA in the fourth quarter of 2025 was also impacted by additional bad debt provisions that were taken as a result of a settlement that we reached with one of the previous junket operators,” Mr Davis said.

“Adjusting for these event-driven costs, Macau’s property EBITDA margin for the fourth quarter of 2025 would’ve been over 27 percent on an actual basis,” he said.

Manila Review Ends While Other Regions Expand

Management halted evaluation of potential structural changes involving City of Dreams Manila.

“We’ve concluded our evaluation of the strategic alternatives for City of Dreams Manila,” Mr Ho said.

“Although we considered various alternatives, we did not feel that any of those options would allow the value and potential of the property to be fully realised,” he added.

Performance in the Philippines declined year on year, with revenue at US$100.2 million and EBITDA at US$33.1 million.

“In the Philippines, competitive pressures and industry headwinds continued to impact our performance in the fourth quarter of 2025,” Mr Ho said.

Operations in Cyprus moved in the opposite direction, producing 35 percent EBITDA growth for full year 2025. A newly opened Colombo casino adds another growth channel in South Asia.

“In Sri Lanka, we continue to focus our efforts to progressively ramp up operations and have seen promising green shoots so far in 2026,” Mr Ho said.

Early 2026 Trading Points to Continued Demand

Macau trends carried into the new year with encouraging results.

“We’ve had a strong start to 2026 in the Macau market, with GGR up by 24 percent year-over-year, and our market share increasing so far in the first quarter of 2026,” Mr Ho said.

Renovation of the Countdown Hotel remains a central development project, with phased openings planned during the third quarter of 2026.

“We’re on track to progressively start opening in the third quarter of 2026,” he added.

Full year 2025 net profit totaled US$185.0 million, rising 325 percent from 2024, on revenue of US$5.16 billion and adjusted property EBITDA of US$1.43 billion.

FAQ

What drove Melco Resorts return to profit?

Recovery in Macau gaming demand and stronger mass market table performance supported revenue and EBITDA growth.

How did Macau properties perform?

City of Dreams and Studio City both reported higher revenue and earnings due to increased visitation and play.

Why did Melco stop reviewing Manila options?

Leadership determined proposed alternatives did not reflect long term value potential of the property.

Which regions showed growth outside Macau?

Cyprus delivered strong EBITDA expansion, while Sri Lanka operations began ramping up after launch.

What major project is planned next?

Phased reopening of the renovated Countdown Hotel in Macau is scheduled to begin in third quarter 2026.

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