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Macau’s roulette wheels are spinning again, and so is Melco’s bottom line.

After several seasons of slow betting, Melco Resorts & Entertainment has stormed back with a 174 per cent profit surge in the third quarter, buoyed by a sharp rebound in Macau and surprising strength from its new outposts in Cyprus and the Philippines.

The company reported a net profit of US$74.7 million for the three months to September 30, up from US$27.3 million in the same quarter last year. Total operating revenue climbed 11 per cent to US$1.31 billion, helped by an improved run across both gaming and non-gaming divisions.

Operating income reached US$184.5 million, up from US$138.6 million, and Adjusted Property EBITDA — a key industry measure rose to US$380.4 million, from US$322.6 million the year before.

“Margins remained stable”

Chairman and Chief Executive Lawrence Ho, never one to gild the lily, described the quarter as “solid growth across the portfolio”, pointing to “stable margins” and the success of new gaming areas and facilities in attracting patrons back to Macau.

“Our properties in Macau delivered solid growth in the third quarter of 2025 with Macau Property EBITDA improving by 21% year-over-year,” he said. “We’ll continue introducing new initiatives that elevate the quality of engagement with our customers.”

If those sound like measured words, the numbers underneath tell a more confident story.

City of Dreams back in full swing

At City of Dreams, Melco’s flagship on the Cotai Strip, total operating revenue jumped to US$672.6 million, up from US$563.9 million. Adjusted EBITDA surged 27 per cent to US$206.9 million, thanks to stronger performance across gaming, retail and dining.

The mass-market table drop — a measure of player betting volume rose to US$1.66 billion, while the all-important rolling chip volume hit US$5.58 billion, up from US$3.3 billion a year ago. VIP win rates eased slightly to 3.68 per cent, but remained comfortably above industry expectations.

Non-gaming revenue, long the yardstick of Macau’s diversification drive, climbed to US$94.8 million, a 20 per cent lift on last year. Luxury shoppers, it seems, are back and with gusto.

Studio City refocus pays off.

Across town at Studio City, the company’s Hollywood-themed resort, the decision to wind down VIP operations and lean into the mass-market crowd has proven wise. Revenue rose to US$375.3 million and EBITDA to US$104.7 million.

Table game drop improved to US$942.5 million and hold percentage lifted to 33.1 per cent. The property’s gaming machine handle topped US$873 million, maintaining a win rate of 3.7 per cent.

Studio City has become something of a case study in adaptive strategy: fewer tuxedos, more tourists and steadier returns.

Altira steadies under pressure.

Melco’s Altira Macau continues to occupy the niche end of the market. Total operating revenue slipped to US$25.6 million, down from US$30.5 million, yet the EBITDA loss narrowed to US$0.7 million from US$1.1 million. Cost control, not glamour, is the hero here.

Cyprus leads Europe’s gaming charge.

Over in the Mediterranean, Melco’s European flagship, City of Dreams Cyprus, has found its stride. The property delivered its best quarter since opening, according to Ho, with revenue of US$85.8 million, up from US$64.4 million, and EBITDA leaping 53 per cent to US$23.2 million.

The numbers were driven by higher mass-market play and rising tourist arrivals, proving that even in a region not famed for casinos, a little Mediterranean sun pairs well with Melco’s brand of spectacle.

Philippines performance resilient

In the Philippines, City of Dreams Manila generated US$110.7 million in revenue, slightly below last year’s US$118.9 million, as currency shifts and softer gaming machine performance weighed on results.

Adjusted EBITDA came in at US$41.3 million, down from US$45.9 million. But again, the detail matters: table-game win rates improved to 4.37 per cent, and the resort’s non-gaming income reached US$24.1 million, thanks to Manila’s resurgent conference and entertainment sectors.

Sri Lanka joins the stage.

Further afield, City of Dreams Sri Lanka opened its doors in August, marking Melco’s first footprint in South Asia. The casino and its Nüwa hotel contributed US$6.1 million in revenue in their debut quarter.

EBITDA was slightly negative, at US$0.6 million, but that’s typical of a new resort still finding its feet. With Colombo’s tourism revival underway, the venture could prove a smart long-term bet.

Balancing the books

For all the upbeat figures, Melco remains a highly leveraged enterprise. Total debt sits at US$7.35 billion, offset by cash and bank balances of US$1.61 billion, including US$125 million of restricted cash.

To its credit, the company has actively refinanced and pared down near-term obligations. It repaid over US$221 million in maturing senior notes and issued US$500 million in new 6.5 per cent notes due in 2033, effectively extending its debt runway.

Available liquidity, including cash and undrawn credit lines, now stands at US$2.6 billion, a comfortable cushion in an industry known for its cyclical swings.

Macau is still the crown jewel

No matter how global Melco becomes, Macau remains its golden goose. The city’s post-pandemic resurgence has been uneven but unmistakable, driven by mass-market players and a cautious revival of international visitation.

Melco’s Macau Property EBITDA rose 21 per cent year-on-year, a performance Ho attributes to “disciplined cost management and steady demand recovery.” The company has also been reallocating resources smartly: two smaller Mocha Clubs closed in September, with their gaming tables moved to higher-performing resorts.

Looking ahead

The broader picture is one of cautious optimism. “Our diversified portfolio across Asia and Europe positions us well for long-term growth,” Ho said. “We’re focused on maintaining momentum through operational excellence and innovation.”

Industry watchers see that as more than PR. The pivot toward non-gaming attractions, luxury accommodation, and leisure tourism mirrors Macau’s regulatory emphasis on economic diversification. It’s also good business sense; casino revenue may fuel the engine, but dining, retail, and entertainment now drive the experience.

Analysts in Hong Kong describe Melco as one of the “cleaner hands” in Macau’s reshaped gaming scene, with a strategy that prizes scale and stability over short-term flash. One noted, “Melco is turning its chips into cash, and this time it’s not relying on luck.”

A company learning to play the long game

In financial terms, Melco’s turnaround has been as much about patience as performance. Adjusted EBITDA margins have stabilised, capital expenditure has remained within the measured range of US$67.6 million for the quarter, and debt reduction remains on track.

But it’s the narrative that matters most. After years of headwinds, pandemic shutdowns, legal reforms, and shifting travel patterns, Melco seems finally to have regained its rhythm.

Ho, who has often framed his company’s role as part-entertainment house, part-national ambassador, summed it up neatly: “Our aim is to deliver sustainable, long-term value to our shareholders while enhancing the tourism appeal of the destinations in which we operate.”

That, in the cool light of a Macau evening, sounds very much like a man holding a winning hand.