Hong Kong-listed Melco International Development (stock code 00200, parent company) has released key operating data from its Nasdaq-listed subsidiary Melco Resorts & Entertainment (“Melco Resorts”) for the three months ended 30 June 2026.
Core financials • Revenue: US$1.25 billion, down 6.0% from US$1.33 billion in Q2 2025, reflecting softer rolling-chip, mass-market table and non-gaming performance. • Operating income: US$127.78 million, edging up 2.5% year on year (Q2 2025: US$124.66 million). • Adjusted Property EBITDA: US$303.80 million, down 19.5% versus US$377.70 million a year earlier. • Net income attributable to Melco Resorts shareholders: US$22.66 million (US$0.06 per ADS), up from US$17.19 million (US$0.04 per ADS). • Net loss attributable to non-controlling interests widened to US$12.11 million (Q2 2025: US$7.84 million).
Cost and expense highlights • Operating costs declined 6.6% to US$1.12 billion, broadly in line with the revenue contraction. • Depreciation and amortization totaled US$135.70 million, including US$5.00 million for land-use rights. • Net non-operating expenses were US$109.53 million, led by net interest expense of US$110.99 million.
Balance-sheet and liquidity • Cash and bank balances stood at US$1.04 billion as at 30 June 2026, comprising US$912.89 million in cash and equivalents and US$124.25 million in restricted cash. • Total debt (net of deferred costs and premiums) reached US$7.05 billion. • Available liquidity, including undrawn revolving credit lines, was approximately US$2.80 billion.
Financing actions • MCO Nominee One drew HK$3.27 billion (US$416.70 million) under its MN1 2020 revolving facilities; facility maturity was extended to June 2031 with total commitments rising to HK$21.68 billion (US$2.76 billion). • Studio City Company issued US$300.00 million of 6.125% senior secured notes due 2031, using proceeds and additional borrowings to refinance US$350.00 million of 7.000% notes due 2027. • Post-quarter, Studio City Finance redeemed US$165.00 million of 6.500% senior notes due 2028, funded by a HK$1.18 billion (US$150.50 million) credit-facility drawdown.
Capital expenditure and shareholder returns • Q2 capital spending was US$123.90 million, focused on enhancements at City of Dreams Macau and City of Dreams Mediterranean. • Between 1 April and 12 August 2026, Melco Resorts repurchased 22.4 million ADSs (equivalent to 67.1 million ordinary shares) for US$120.60 million; US$589.60 million of buy-back authority remains.
Outlook considerations Management attributed the revenue decline chiefly to weaker gaming volumes and non-gaming activities. Despite this, disciplined cost control supported a modest rise in operating profit and a 31.7% increase in attributable net income.
Comments