Melco Resorts posts sharp decline in 3Q net income, with softer performance in Macau and Manila

Global casino operator Melco Resorts & Entertainment Ltd reported net income of US$34,000 for the third quarter, the firm said in an announcement on Wednesday. That was a sharp decline from approximately US$74.7 million recorded in the prior-year period. It also represented a significant decrease from the net income of just under US$22.7 million that Melco Resorts had recorded in the second quarter of 2026. Group-wide operating revenues for the period from July to September 2026 fell 10.4 percent year-on-year, to circa US$1.17 billion. The decrease “was primarily attributable to softer performance in rolling chip and mass-market table games as well as overall non-gaming operations”, the firm stated. Group-wide operating revenues from the casino business decreased by 11.5 percent from a year earlier, to nearly US$939.2 million. The group runs casinos in Macau, one in the Philippine capital, Manila, and several in the Republic of Cyprus. In the third quarter last year, it launched a new casino in the Sri Lankan capital, Colombo. Melco Resorts’ aggregate operating expenses in the three months to September 30 declined by 4.6 percent from the prior-year period, to about US$1.07 billion. Group-wide adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) contracted by 24.4 percent year-on-year, to nearly US$287.6 million. Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts, was quoted in the results announcement as saying: “We are focused on disciplined execution of our strategy to drive strong returns.” He added: “Coupled with the opening of our newly branded hotel REM and the renovation of our retail space at City of Dreams, we believe we are well-positioned to capture the demands of our evolving customer base, supporting long-term growth.” The company’s latest luxury hotel offering, REM, at the group’s Cotai flagship resort, City of Dreams in Macau (pictured in a file photo), started a phased opening during the third quarter. For the three months ended September 30, operating revenues at City of Dreams Macau were US$566.2 million, compared with US$$672.6 million a year earlier. The property’s adjusted EBITDA was US$130.3 million in the reporting period, compared with US$206.9 million in the third quarter of 2025. The year-on-year decrease in adjusted EBITDA “was primarily a result of softer rolling chip and mass-market table games performance”, the company said. Rolling chip volume decreased to US$4.63 billion during the third quarter of 2026, compared with US$5.58 billion a year ago. Third-quarter operating revenues at City of Dreams Manila declined by 10.6 percent year-on-year, to just US$99.0 million. The property’s adjusted EBITDA decreased 20.3 percent, to US$32.9 million. The Cyprus business reported quarterly operating revenues of US$96.7 million, compared with US$85.8 million in the second quarter of 2025. Its adjusted EBITDA increased by 10.8 percent year-on-year, to US$25.7 million, which the company attributed to a “stronger mass-market performance”. Operating revenues from Melco Resorts’ casino operations and the provision of management services to the Nüwa hotel at City of Dreams Sri Lanka in Colombo were US$17.6 million for the quarter ended September 30, compared with US$6.1 million a year earlier. Adjusted EBITDA was US$4.0 million in the reporting period, compared with negative adjusted EBITDA of US$0.6 million in the third quarter of 2025. Total cash and bank balances at Melco Resorts as at September 30, 2026 totalled US$886.6 million, including US$124.2 million of restricted cash. Total debt, net of unamortised deferred financing costs and original issue premiums, was US$6.98 billion at the end of the period. Melco Resorts said it had repurchased approximately 33.1 million of its American depositary shares (ADSs) from the open market between July 1 and November 3 this year, representing around 99.2 million ordinary shares, for an aggregate purchase price of US$160.0 million. Melco Resorts also announced on Wednesday that the land concession for Studio City had been renewed for a term of 10 years to October 16, 2036, pursuant to the payment of a “special contribution” of MOP85.7 million, equivalent to US$10.6 million.