Hong Kong–listed Melco International Development Limited (00200) has released the unaudited second-quarter 2026 results of its Nasdaq-listed subsidiary, Melco Resorts & Entertainment Limited (MLCO).
Financial Highlights (Apr–Jun 2026) • Total operating revenue fell 5.7% year on year to USD 1.25 billion, reflecting softer rolling-chip and mass-market table volumes as well as weaker non-gaming activities. • Operating income edged up 2.5% to USD 127.78 million. • Adjusted Property EBITDA declined 19.6% to USD 303.83 million. • Net income attributable to MLCO rose to USD 22.66 million (USD 0.06 per ADS) from USD 17.19 million (USD 0.04 per ADS) a year earlier. • Net loss attributable to non-controlling interests widened to USD 12.11 million.
Segment Performance • City of Dreams (Macau): Revenue USD 632.20 million (-11.0%); Adjusted EBITDA USD 147.80 million (-34.5%). Rolling-chip win rate slipped to 2.71% versus 3.93% in Q2 2025. • Studio City (Macau): Revenue USD 371.50 million (-4.3%); Adjusted EBITDA USD 95.50 million (-9.2%). Mass-market table drop softened 7.7% to USD 884.10 million. • Altira Macau: Revenue USD 33.90 million (+19.8%); Adjusted EBITDA USD 2.20 million versus USD 0.80 million, buoyed by stronger mass play. • Mocha Clubs: Revenue USD 15.10 million (-45.9%); Adjusted EBITDA USD 4.00 million (-23.1%) after Grand Dragon Casino’s closure in 2025. • City of Dreams Manila: Revenue USD 97.30 million (-1.2%); Adjusted EBITDA improved 8.8% to USD 30.90 million despite lower rolling-chip volume. • City of Dreams Mediterranean & satellite casinos (Cyprus): Revenue USD 82.00 million (+13.4%); Adjusted EBITDA jumped 60.3% to USD 19.90 million on mass-market strength. • Other Operations (Sri Lanka): Contributed USD 16.90 million revenue and USD 3.50 million Adjusted EBITDA in its first full comparable quarter.
Cash Flow & Balance Sheet • Cash and bank balances stood at USD 1.04 billion as of 30 June 2026, including USD 124.30 million restricted cash. • Net debt reached USD 7.05 billion; total available liquidity (cash plus undrawn credit lines) was approximately USD 2.80 billion. • Q2 2026 capital expenditure totaled USD 123.90 million, targeting enhancements at City of Dreams Macau and Cyprus properties. • Between 1 April and 12 August 2026, MLCO repurchased 22.4 million ADS for USD 120.60 million; USD 589.60 million remains under the current buyback mandate.
Strategic & Operational Updates • New 900-room hotel “REM” at City of Dreams Macau to begin phased opening in Q3 2026, aiming to deepen customer engagement and capture recovering demand. • Expansion of revolving credit capacity: HKD 6.44 billion incremental facility raised total commitments to HKD 21.68 billion (USD 2.76 billion), with maturity extended to June 2031. • Studio City refinanced USD 350.00 million of 2027 notes with new USD 300.00 million 2031 senior secured notes and credit-facility drawdowns.
Key Operating Metrics • City of Dreams table win per unit per day moderated to USD 16,323; gaming-machine win per unit rose to USD 586. • Studio City table win per unit per day held at USD 13,925; gaming-machine win per unit eased to USD 433. • Average hotel occupancy remained high in Macau (City of Dreams 99%, Studio City 97%); City of Dreams Mediterranean occupancy improved to 67% with ADR of USD 536.
Management Outlook Chairman and CEO Lawrence Ho reaffirmed confidence in Macau’s long-term prospects, citing the upcoming REM hotel launch and ongoing efficiency initiatives. He highlighted resilience in the Philippines and significant year-on-year EBITDA growth in Cyprus as regional travel conditions normalise.
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