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Melco Resorts & Entertainment has once again outperformed analyst forecasts in the second quarter of 2025, delivering a strong set of numbers that highlight the company’s growing dominance in Macau. Total operating revenues surged 14.5 percent year-on-year to US$1.33 billion, with gaming revenues rising 16.2 percent to US$1.10 billion. That’s not only a yearly landmark, but the company also experienced sequential improvement, with operating revenues increasing more than 8 percent quarter-over-quarter and gaming revenues up nearly 8 percent as well.
The star of the report is undoubtedly Melco’s Macau portfolio. Adjusted EBITDA across the group jumped 24.1 percent year-on-year to US$352 million, and even after accounting for high VIP hold rates, the underlying property EBITDA beat expectations with a 22 percent increase.
City of Dreams Macau and Studio City Just Keep Shining
Leading the charge is City of Dreams Macau. The property reported a 21 percent year-on-year increase in gross gaming revenue to US$779 million, with a further 6 percent lift from the previous quarter. Of special note is the mass market segment, which generated US$535 million in GGR, a solid 14 percent higher year-on-year and up 11 percent sequentially. The VIP tables brought in US$216 million, up a giant 49 percent compared to last year, even if that figure dropped slightly against Q1. Meanwhile, slot GGR remained steady at US$28 million. City of Dreams Macau’s adjusted EBITDA soared to US$226 million, jumping 37 percent from last year and up 15 percent quarter-over-quarter.
Studio City showed steady growth despite ending VIP table operations. Overall GGR climbed 6 percent year-on-year and 7 percent quarter-on-quarter to US$360 million. The engine here is mass table gaming, which reached US$326 million, up 13 percent from last year. Slots GGR also came in strong at US$34 million, and the property posted a 33 percent year-on-year rise in adjusted EBITDA to US$105 million.
Altira remains a smaller piece of the puzzle, but the property managed to hold GGR flat at US$28 million, returning to profitability with a US$1 million adjusted EBITDA.
Philippine and Cyprus Properties Face Headwinds
While Macau continues to lift Melco’s overall results, the picture isn’t as bright for Melco’s properties outside the region. City of Dreams Manila saw a 9 percent drop in gross gaming revenue to US$111 million, though the mass and VIP tables saw some quarter-over-quarter improvement. Slots, on the other hand, posted a 10 percent decline from the preceding quarter to US$46 million. As a result, adjusted EBITDA in Manila slipped 30 percent year-on-year and 5 percent quarter-on-quarter, closing at US$28 million.
In Cyprus, City of Dreams Mediterranean delivered a 26 percent year-on-year rise in GGR to US$68 million. Higher costs, though, pressured the property’s adjusted EBITDA, which finished at US$12 million for the quarter. Mass table revenue in Cyprus rose sharply, and slots GGR jumped 21 percent against the same period last year.
Leadership Cites Strategic Progress
Melco Chairman and Chief Executive Lawrence Ho credited the Macau beat results to record gaming performance and cost discipline. He noted that both City of Dreams Macau and Studio City recorded all-time highs in mass market table revenue, driving improved margins across the group. With competitive and operational issues in the Philippines as well as costs in Cyprus, Ho was upbeat, citing the ongoing efficiency drives.
He also anticipated another milestone for Melco in the form of City of Dreams Sri Lanka’s opening. The company expects this property, the first integrated resort in Sri Lanka and South Asia, to create fresh growth opportunities.
Looking Forward
Melco’s Q2 2025 performance underscores its position as a market leader in Macau, fueled by robust mass and VIP segments and a focus on operational efficiency. Though there are still some headwinds for its international assets, the resilience of the core Macau properties is dictating the pace for the remainder of the year. With new expansions on the horizon, the company appears well-suited to continue its growth narrative while continuing its balanced, fact-centric methodology that has characterized its recent run.
Source: Inside Asian Gaming (IAG)
