Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the second quarter of 2025.
Total operating revenues for the second quarter of 2025 were US$1.33 billion, representing an increase of approximately 15% from US$1.16 billion for the comparable period in 2024. The increase in total operating revenues was primarily attributable to the improved performance in both overall gaming and non-gaming operations.
Operating income for the second quarter of 2025 was US$124.7 million, compared with US$123.7 million in the second quarter of 2024.
Melco’s Adjusted Property EBITDA(1) was US$377.7 million in the second quarter of 2025, compared with US$302.8 million in the second quarter of 2024.
Net income attributable to Melco Resorts & Entertainment Limited for the second quarter of 2025 was US$17.2 million, or US$0.04 per ADS, compared with US$21.4 million, or US$0.05 per ADS, in the second quarter of 2024. The net loss attributable to noncontrolling interests was US$7.8 million and US$22.7 million during the second quarters of 2025 and 2024, respectively, the majority of which related to the net loss attributable to Studio City and City of Dreams Mediterranean and Other.
Mr. Lawrence Ho, our Chairman and Chief Executive Officer, commented, “Macau Property EBITDA grew 35% year-over-year and 13% quarter-to-quarter. Gaming volumes and revenue increased, with City of Dreams Macau and Studio City setting new records in mass market table games revenue. This was further supported by increases in cost efficiencies leading to stronger margins. We are confident that the strategic initiatives we implemented have set us up on a solid foundation for continued growth.
“In the Philippines, although the heightened competitive environment continues to impact performance, we have been implementing a variety of initiatives to improve performance and reduce cost. In Cyprus, City of Dreams Mediterranean and our satellite casinos exhibited solid results despite the events in the Middle East in June 2025 and we are cautiously optimistic about the performance for the remainder of the peak season.
“And finally, we are very excited to have City of Dreams Sri Lanka open on August 1, 2025. City of Dreams Sri Lanka represents the first integrated resort in Sri Lanka and South Asia, and we are excited for the opportunities this presents for us.”
City of Dreams Second Quarter Results
For the quarter ended June 30, 2025, total operating revenues at City of Dreams were US$710.5 million, compared with US$576.4 million in the second quarter of 2024. City of Dreams’ Adjusted EBITDA was US$225.6 million in the second quarter of 2025, compared with US$165.1 million in the second quarter of 2024. The year-over-year increase in Adjusted EBITDA was primarily a result of better performance in all gaming operations.
Rolling chip volume increased to US$5.49 billion during the second quarter of 2025, compared with US$4.83 billion in the second quarter of 2024 and win rate was 3.93% in the second quarter of 2025 versus 2.99% in the second quarter of 2024. The expected rolling chip win rate range is 2.85%-3.15%.
Mass market table games drop increased to US$1.75 billion in the second quarter of 2025, compared with US$1.46 billion in the second quarter of 2024 and hold percentage was 30.5% in the second quarter of 2025, compared with 32.3% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$945.3 million, compared with US$902.3 million in the second quarter of 2024 and win rate was 3.0% in the second quarter of 2025 versus 3.1% in the second quarter of 2024.
Total non-gaming revenue at City of Dreams in the second quarter of 2025 was US$88.1 million, compared with US$80.4 million in the second quarter of 2024.
Studio City Second Quarter Results
For the quarter ended June 30, 2025, total operating revenues at Studio City were US$388.2 million, compared with US$352.3 million in the second quarter of 2024. Studio City’s Adjusted EBITDA was US$105.2 million in the second quarter of 2025, compared with US$79.2 million in the second quarter of 2024. The year-over-year increase in Adjusted EBITDA was primarily a result of better mass market performance.
Mass market table games drop was US$958.2 million in the second quarter of 2025, compared with US$955.6 million in the second quarter of 2024 and hold percentage was 34.0% in the second quarter of 2025, compared with 30.1% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$916.1 million, compared with US$842.4 million in the second quarter of 2024 and win rate was 3.7% in the second quarter of 2025, compared with 3.3% in the second quarter of 2024.
Total non-gaming revenue at Studio City was US$83.8 million in the second quarter of 2025, compared with US$80.4 million in the second quarter of 2024.
As reported in the earnings release for the fourth quarter of 2024, Studio City has strategically repositioned itself to focus on the premium mass and mass operations, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024.
Altira Macau Second Quarter Results
For the quarter ended June 30, 2025, total operating revenues at Altira Macau were US$28.3 million, compared with US$29.3 million in the second quarter of 2024. Altira Macau’s Adjusted EBITDA was US$0.8 million in the second quarter of 2025, compared with negative Adjusted EBITDA of US$2.0 million in the second quarter of 2024.
Mass market table games drop was US$119.0 million in the second quarter of 2025 versus US$134.4 million in the second quarter of 2024 and hold percentage was 21.3% in the second quarter of 2025, compared with 20.6% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$114.9 million, compared with US$132.1 million in the second quarter of 2024 and win rate was 2.5% in the second quarter of 2025 versus 2.6% in the second quarter of 2024.
Total non-gaming revenue at Altira Macau was US$4.8 million in the second quarter of 2025, compared with US$4.9 million in the second quarter of 2024.
Mocha and Other Second Quarter Results
Total operating revenues from Mocha and Other were US$27.9 million in the second quarter of 2025, compared with US$30.7 million in the second quarter of 2024. Mocha and Other’s Adjusted EBITDA was US$5.2 million in the second quarter of 2025, compared with US$6.8 million in the second quarter of 2024.
Mass market table games drop was US$53.4 million in the second quarter of 2025 versus US$58.0 million in the second quarter of 2024 and hold percentage was 15.6% in the second quarter of 2025 versus 18.9% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$496.4 million, compared with US$502.7 million in the second quarter of 2024 and win rate was 4.1% in the second quarter of 2025 versus 4.2% in the second quarter of 2024.
City of Dreams Manila Second Quarter Results
For the quarter ended June 30, 2025, total operating revenues at City of Dreams Manila were US$98.5 million, compared with US$109.0 million in the second quarter of 2024. City of Dreams Manila’s Adjusted EBITDA was US$28.4 million in the second quarter of 2025, compared with US$40.5 million in the comparable period of 2024. The year-over-year decrease in Adjusted EBITDA was primarily a result of softer performance in all gaming operations.
City of Dreams Manila’s rolling chip volume was US$694.4 million in the second quarter of 2025 versus US$572.9 million in the second quarter of 2024 and win rate was 2.05% in the second quarter of 2025 versus 3.19% in the second quarter of 2024. The expected rolling chip win rate range is 2.85%-3.15%.
Mass market table games drop decreased to US$147.9 million in the second quarter of 2025, compared with US$174.4 million in the second quarter of 2024 and hold percentage was 34.8% in the second quarter of 2025, compared with 32.4% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$1.00 billion, compared with US$1.04 billion in the second quarter of 2024 and win rate was 4.6% in both the second quarters of 2025 and 2024.
Total non-gaming revenue at City of Dreams Manila in the second quarter of 2025 was US$27.0 million, compared with US$27.3 million in the second quarter of 2024.
City of Dreams Mediterranean and Other Second Quarter Results
The Company operates City of Dreams Mediterranean in conjunction with three satellite casinos in Cyprus.
Total operating revenues at City of Dreams Mediterranean and Other for the quarter ended June 30, 2025 were US$72.3 million, compared with US$58.7 million in the second quarter of 2024. City of Dreams Mediterranean and Other’s Adjusted EBITDA was US$12.4 million in the second quarter of 2025, compared with US$13.1 million in the second quarter of 2024.
Rolling chip volume was US$0.7 million for the second quarter of 2025 versus US$6.9 million in the second quarter of 2024 and win rate was 7.28% in the second quarter of 2025, compared with negative 5.59% in the second quarter of 2024. The expected rolling chip win rate range is 2.85%-3.15%. The significant fluctuation on the rolling chip win rate resulted from low gaming volumes.
Mass market table games drop was US$161.8 million in the second quarter of 2025, compared with US$113.8 million in the second quarter of 2024 and hold percentage was 21.9% in the second quarter of 2025, compared with 24.0% in the second quarter of 2024.
Gaming machine handle for the second quarter of 2025 was US$668.1 million, compared with US$522.4 million in the second quarter of 2024 and win rate was 4.9% in the second quarter of 2025 versus 5.2% in the second quarter of 2024.
Total non-gaming revenue at City of Dreams Mediterranean and Other in the second quarter of 2025 was US$25.4 million, compared with US$19.2 million in the second quarter of 2024.
Other Factors Affecting Earnings
Total net non-operating expenses for the second quarter of 2025 were US$103.4 million, which mainly included interest expense, net of amounts capitalized of US$117.9 million, partially offset by net foreign exchange gains of US$13.3 million.
Depreciation and amortization costs of US$133.9 million were recorded in the second quarter of 2025, of which US$5.0 million related to the amortization expense for land use rights.
As announced on June 9, 2025, after considering the Company’s overall development strategy and in accordance with Macau law, the Company will cease operations of the Grand Dragon Casino and three Mocha Clubs before the end of 2025. As a result, in the second quarter of 2025, we recognized an impairment in goodwill of US$55.6 million in Property Charges and Other to reflect the decrease in fair value of the reporting unit “Mocha and Other” which takes into account the expected cessation of three Mocha Clubs before the end of 2025 and the continuing operations of the other three Mocha Clubs, namely, Mocha Inner Harbour, Mocha Hotel Sintra and Mocha Golden Dragon, subject to compliance with all legal and regulatory requirements in Macau.
The Adjusted EBITDA for Studio City for the three months ended June 30, 2025 referred to above was US$28.8 million more than the Adjusted EBITDA of Studio City contained in the earnings release for Studio City International Holdings Limited (“SCIHL”) dated July 31, 2025 (the “Studio City Earnings Release”). The Adjusted EBITDA of Studio City contained in the Studio City Earnings Release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in this press release. Such intercompany charges include, among other items, fees and shared service charges billed between SCIHL and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in this press release does not reflect certain gaming concession related costs and certain intercompany costs related to the gaming operations at Studio City Casino.
Financial Position and Capital Expenditures
Total cash and bank balances as of June 30, 2025 aggregated to US$1.24 billion, including US$124.1 million of restricted cash. Total debt, net of unamortized deferred financing costs and original issue premiums, was US$7.16 billion at the end of the second quarter of 2025. Available liquidity, including cash and undrawn revolving credit facilities as of June 30, 2025 was approximately US$2.27 billion.
In July 2025, Studio City Finance Limited repaid the US$221.6 million principal amount outstanding under the 6.00% senior notes which matured on July 15, 2025, with a HK$1,337.0 million (equivalent to US$170.3 million) drawdown from the senior secured credit facilities entered into by Studio City Company Limited and the remainder with cash on hand.
Capital expenditures for the second quarter of 2025 were US$95.9 million, which included costs related to enhancement projects at City of Dreams in Macau and Studio City, and the fit-out of the casino at City of Dreams Sri Lanka.
Conference Call Information
Melco Resorts & Entertainment Limited will hold a conference call to discuss its second quarter 2025 financial results on Thursday, July 31, 2025 at 8:30 a.m. Eastern Time (or 8:30 p.m. Singapore Time).
To join the conference call, please register in advance using the below Online Registration Link. Upon registering, each participant will receive the dial-in numbers, passcode and a unique Personal PIN which can be used to join the conference.
