Melco reports $1.23 billion in Q1 revenue as mass market and Macau growth drive momentum

Melco Resorts & Entertainment reported a total revenue of $1.23 billion for Q1 2025, a 10.8% year-on-year increase. Gaming revenue rose 12.2% to $1.02 billion.

The company's net income rose to $32.5 million, while Adjusted EBITDA grew 10.2% to $341 million, according to Inside Asian Gaming report. Analysts noted the improvement was aided by a favorable VIP hold, but even on a normalized basis, the company surpassed expectations thanks to a record-breaking mass market segment.

Melco’s flagship property, City of Dreams Macau, saw total operating revenue  rise 18% year-on-year to $735 million. VIP revenue surged 79% to $226 million, and slot revenue rose 3% to $29 million. Adjusted Property EBITDA jumped 28% to $196 million.


Despite the new competition from the Londoner Grand, which opened in April targeting the premium mass segment, traffic at Melco resorts increased by 30% year-on-year, the iGaming Business reported.

The return of House of Dancing Water at City of Dreams was also a major success, expected to boost foot traffic by 4,000 visitors daily. Additional initiatives, like revamping the retail area and renovating the main entrances at both City of Dreams and Studio City, are driving traffic.

Studio City posted its best quarter since the pandemic, with total GGR up 6% to $336 million. Mass revenue increased 11%, and slot revenue rose 23%. Adjusted Property EBITDA was up 11% to $97 million.

Meanwhile, Altira Macau had a more challenging quarter, with GGR falling 24% year-on-year to $28 million, resulting in a minor EBITDA loss.

Melco’s overall market share in Macau rose from 14.7% in Q4 2024 to 15.7% in Q1 2025, with the company noting that share remained steady into April and the Golden Week holiday.

CBRE Equity Research responded positively, raising its full-year EBITDA forecast for Melco. “It’s hard not to get excited about the inflection evidenced in Melco’s 4Q24 results in Macau, coupled with upbeat commentary on the start of 2Q25,” CBRE analyst John DeCree said.

“With recent share gains holding steady, increased opex discipline, normalizing promotional activity and strong market wide visitation trends during the May holiday period, we see upside to our forecast for Melco in Macau,” he added.

Outside Macau, results were mixed. City of Dreams Manila’s GGR dropped 13% to $109 million, and EBITDA fell 21% to $30 million due to increased competition. In response, CEO Lawrence Ho has adjusted the cost structure and marketing strategies to improve EBITDA.

Melco said it is also working to sell its Philippine property in Entertainment City to free up capital for a potential bid in Thailand, should the country legalize gaming resorts.

City of Dreams Mediterranean also saw its GGR rise 10% to $59 million, with EBITDA up 10% to $12 million. Despite regional instability, bookings are significantly higher than last year, and the property is ramping up for summer.

“The ongoing strength that we are seeing in our business momentum is a direct result of the combined efforts of our teams and the quality of our product offerings, and we will continue to build on this momentum,” Ho saiud.

The company also confirmed City of Dreams Sri Lanka is on track to open in Q3 2025.