Melco Q2 profit dips 19.6% despite 14.5% rise in operating revenue

Melco Resorts & Entertainment reported a 19.6% decline in second-quarter net income on Thursday, despite a strong performance in Macau, where adjusted property earnings jumped 35% year-on-year.

Net income attributable to shareholders fell to $17.2 million from $21.4 million a year earlier, while total operating revenues rose 14.5% to $1.33 billion, driven by record mass-market gaming volumes at Melco’s flagship Macau properties.

“Macau property EBITDA grew 35 percent year-over-year and 13 percent quarter-to-quarter,” said Lawrence Ho, Chairman and CEO of Melco Resorts. “Gaming volumes and revenue increased, with City of Dreams Macau and Studio City setting new records in mass-market table games revenue.”

Melco’s Macau operations generated adjusted property EBITDA of $336.9 million, up from $249.2 million a year ago. The company credited this growth to increased gaming activity and improved cost efficiency. Group-wide adjusted property EBITDA rose 24.7% to $377.7 million, while adjusted net income surged 224.8% to $92.3 million, excluding development and pre-opening costs.

However, group-wide operating expenses also climbed 16.2% to just over $1.20 billion, in line with the rise in casino operating revenues, which hit $1.01 billion, also up 16.2%.

In the Philippines, Melco’s City of Dreams Manila continued to face pressure from intensified competition. Operating income there fell 25.8% to $12.8 million, while adjusted property EBITDA dropped 29.8% to $28.4 million.

“Although the heightened competitive environment continues to impact performance, we have been implementing a variety of initiatives to improve performance and reduce cost,” Ho said.

In Cyprus, where Melco runs three satellite casinos and City of Dreams Mediterranean, revenues rose to $72.3 million from $58.7 million a year earlier. Yet adjusted EBITDA declined 5.3% to $12.4 million, with the unit posting an operating loss of $748,000, impacted by regional instability linked to events in the Middle East in June 2025.

“City of Dreams Mediterranean and our satellite casinos exhibited solid results despite the events in the Middle East in June 2025, and we are cautiously optimistic about the performance for the remainder of the peak season,” Ho added.

Melco also launched its newest property, City of Dreams Sri Lanka, in Colombo this past weekend, marking its debut in South Asia. The resort's official launch event was held on August 2.

“City of Dreams Sri Lanka represents the first integrated resort in Sri Lanka and South Asia, and we are excited for the opportunities this presents for us,” Ho said.