Melco Resorts Q3 2026 Net Income Falls to US$34,000 as Macau and Manila Weaken
Quarterly snapshot: not a profit party
Melco Resorts & Entertainment Ltd. posted a net income of just US$34,000 for the third quarter of 2026 — a far cry from US$74.7 million a year earlier and well below the US$22.7 million earned in the prior quarter. The results point to softer performance in rolling-chip and mass-market table games, plus weaker non-gaming operations across the group.
Revenue and cost picture
Group operating income hovered around US$1.17 billion, down 10.4% year over year. Casino revenue slipped about 11.5% to roughly US$939.2 million. On the cost side, Melco trimmed expenses by 4.6% to about US$1.07 billion, but revenues plunged faster, leaving adjusted property EBITDA down 24.4% to around US$287.6 million.
Leadership’s stance and strategic moves
Lawrence Ho Yau Lung, Melco’s chairman and CEO, stressed that the company is sticking to a disciplined strategy aimed at delivering solid returns through the cycle. He also noted renovations to REM hotel and City of Dreams Macau, designed to meet guest expectations and support long‑term growth. The REM project began a phased opening during the quarter at the group’s Cotai flagship.
City of Dreams Macau: the numbers
City of Dreams Macau raked in US$566.2 million in revenue, down from US$672.6 million in the year-ago period. Adjusted EBITDA came in at US$130.3 million versus US$206.9 million previously. The slide was largely due to weaker rolling-chip and mass-market table games; rolling chips volume stood at US$4.63 billion, down from US$5.58 billion.
City of Dreams Manila: softer but still operating
City of Dreams Manila also saw softer performance, with operating revenue down 10.6% year over year to US$99.0 million and adjusted EBITDA down 20.3% to US$32.9 million.
Other regional highlights
Melco’s Cyprus operation posted quarterly operating revenue of US$96.7 million, with adjusted EBITDA up 10.8% year over year to US$25.7 million, helped by strength in mass-market play.
In Colombo, Sri Lanka, the Nüwa hotel and casino operations generated US$17.6 million in quarterly earnings, with an adjusted EBITDA of US$4.0 million, turning from a loss last quarter.
Financial position and capital actions
As of September 30, Melco held cash and bank balances of US$886.6 million, including US$124.2 million in restricted cash. Total debt stood at US$6.98 billion, net of unamortized financing costs and related premiums.
The company also disclosed the buyback of about 33.1 million American depositary shares between July 1 and November 3, representing around 99.2 million ordinary shares, at an aggregate cost of US$160.0 million. The repurchase disclosure covered a period extending beyond the September quarter-end, while cash and debt figures reflected the position at quarter-end.
Other news: Studio City land concession renewed
Separately, Melco announced a 10-year renewal of Studio City’s land concession, extending to October 16, 2036, following a special contribution of about MOP85.7 million (roughly US$10.6 million).
Bottom line
Melco’s quarter shows a mixed bag: modest profits stretched thin by softer markets, but ongoing upgrades and strategic moves are in place to support longer-term growth. The big question is whether renovations and prudent capital management will pay off as markets rebound.
Source: GGR Asia
