Melco Resorts Reports 31.8 Percent Net Income Increase in Q2 Despite Group Revenue and EBITDA Declines
TL;DR — Melco Resorts net income rose 31.8% YoY to US$22.7M in Q2 while revenues fell 5.7% to US$1.25B and EBITDA dropped 19.6% to US$303.8M. Macau softened on table games but Manila and Cyprus delivered growth. The operator cited efficiency gains and property investments amid long-term Macau optimism.
SCCG Take — Diversified operations offset Macau pressure through cost controls that supported bottom-line growth. Operators must track visitation recovery and non-gaming contributions as efficiency measures face limits in a rebounding market.
Melco Resorts & Entertainment Ltd recorded a 31.8 percent year-on-year rise in net income attributable to owners, reaching just under US$22.7 million in the second quarter. Group-wide operating revenues fell 5.7 percent to circa US$1.25 billion for the period ended June 30, according to the company’s announcement as reported by GGRAsia. Casino business revenues decreased 5.5 percent to nearly US$1.04 billion.
Aggregate operating expenses declined 6.7 percent to about US$1.12 billion. Group-wide adjusted property EBITDA contracted 19.6 percent to nearly US$303.8 million. The company attributed the revenue decline primarily to softer rolling chip and mass market table games performance plus weaker non-gaming operations.
Macau Property Results
At City of Dreams Macau, operating revenues totaled US$632.2 million, down from US$710.5 million a year earlier. Adjusted EBITDA fell to US$147.8 million from US$225.6 million. Rolling chip volume decreased to US$5.16 billion from US$5.49 billion.
Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts & Entertainment Ltd, noted the near-term headwinds in the results. Ho stated the group is focused on deepening customer engagement, attracting high-quality visitation and investing in properties. The phased opening of the REM luxury hotel tower at City of Dreams began in the third quarter. The firm is also investing about US$125 million to remodel the Countdown hotel, which closed for renovation in 2021.
International Portfolio Performance
City of Dreams Manila posted operating revenues of just under US$97.3 million, a 1.2 percent year-on-year decline, yet adjusted EBITDA rose 8.8 percent to US$30.9 million. In Cyprus, revenues reached US$82.0 million, up from US$72.3 million, with adjusted EBITDA increasing 60.5 percent to US$19.9 million on better mass market performance.
Ho added that the diversified portfolio demonstrated resilience and growth potential. The company expressed confidence in the long-term strength of its businesses and the outlook for Macau. Cost discipline and efficiency efforts position the operator to capture gaining momentum in the market.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Cost discipline and geographic diversification protected profits even as Macau table games softened — the playbook only works so long.
We track operator resilience across portfolios, not single markets. Melco's 32% net income gain amid falling revenue shows smart cost control and why Manila and Cyprus matter when Macau cools. But efficiency has limits — visitation and non-gaming must rebound or margins compress. SCCG partners watch these regional shifts closely.
- Q2 net income rose 31.8% to $22.7M; revenue fell 5.7% to $1.25B, EBITDA down 19.6%
- Macau table games weakened; Manila EBITDA up 8.8%, Cyprus contributed growth
- Melco investing $125M+ in property upgrades, banking on long-term Macau recovery
SCCG angle: SCCG has deep relationships across Macau, Manila, and Cyprus markets. When clients assess geographic diversification or efficiency plays like Melco's, we connect them to operators, suppliers, and investors who've navigated similar pivots — turning market pressure into strategic opportunity with the right partners.
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