Melco Resorts reports stronger 3Q earnings on gaming recovery, Cyprus boost | AGB
Summary
Melco Resorts & Entertainment posted stronger third-quarter results as gaming and non-gaming revenue improved across its Asian and European operations. Total operating revenue rose 11% year‑on‑year to $1.31 billion, operating income increased to $184.5 million (from $138.6m) and adjusted property EBITDA climbed 18% to $380.4 million. Net income attributable to shareholders nearly tripled to $74.7 million, from $27.3 million a year earlier.
Macau drove much of the improvement: City of Dreams saw revenue up 19% to $672.6 million and adjusted EBITDA up 27% to $206.9 million, with rolling chip volume more than doubling to $5.58 billion as VIP play recovered. Studio City posted modest gains, Altira remained small-scale, and Melco is reallocating gaming assets following planned Mocha Club closures. Overseas, Cyprus delivered a record quarter (revenue up 33% to $85.8m; adjusted EBITDA $23.2m), Manila softened and City of Dreams Sri Lanka started operations in August contributing $6.1m. The group finished the quarter with $1.61 billion in cash, $7.35 billion of total debt and available liquidity around $2.60 billion.
Key Points
- Total operating revenue: $1.31bn, +11% year‑on‑year.
- Operating income: $184.5m (up from $138.6m); adjusted property EBITDA: $380.4m, +18%.
- Net income attributable to shareholders: $74.7m (nearly 3x the prior year quarter).
- City of Dreams Macau: revenue $672.6m (+19%); adjusted EBITDA $206.9m (+27%); rolling chip volume $5.58bn.
- City of Dreams Mediterranean (Cyprus): revenue $85.8m (+33%); adjusted EBITDA $23.2m, best quarter since opening.
- City of Dreams Manila: revenue down to $110.7m; adjusted EBITDA fell to $41.3m.
- New operations: City of Dreams Sri Lanka began casino operations in August, adding $6.1m in Q3 revenue.
- Balance sheet moves: $1.61bn cash, $7.35bn debt, liquidity ≈ $2.60bn; repaid >$530m of facilities and issued $500m 6.50% senior notes due 2033; capex $67.6m.
- Management highlights: cost discipline, rollout of new gaming areas and customer engagement initiatives; reallocating assets after Mocha Club closures in Macau.
Context and relevance
Melco’s Q3 shows a clear illustration of the broader Macau recovery story — VIP rolling volumes are returning and non‑gaming revenue is improving. The strong Cyprus performance underlines the group’s diversification beyond Greater China, while the Sri Lanka opening signals further regional expansion. The company is balancing growth with active balance‑sheet management (repayments plus new bond issuance), which matters to investors and creditors.
Author note (punchy): This one matters. Melco’s results are a useful barometer for Macau VIP momentum and show how overseas assets (Cyprus, Sri Lanka) can materially smooth earnings. If you follow gaming markets, finance or regional expansion strategies, read the details.
Why should I read this?
Short and blunt — if you watch Macau or regional casino operators, this is worth a quick read. Melco’s Q3 packs solid numbers, a VIP comeback, a standout Cyprus quarter and clear signs the group is fixing its balance sheet while still spending on upgrades. We’ve saved you the slog: the essentials are here.
