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Melco Resorts & Entertainment views its Macau properties as holding steady, with no major shifts expected up or down despite a crowded market. During Thursday’s earnings call, President Evan Andrew Winkler said the company is not planning to ramp up spending on gaming promotions to chase more shares. He described the current environment as balanced, with no signs of spending levels rising or falling sharply as the first quarter unfolds.
Stable Outlook With No Plans to Boost Spend
Winkler noted that competition stays intense, but Melco is comfortable where it stands. Based on trends from late 4Q into early this year, he said there is nothing pointing to a drop-off in the near term, nor anything set to push performance higher. However, Chairman Lawrence Ho said that the margins feel correct for the level of competition that is anticipated to continue for the remainder of 2026.
The fact that Melco is not adjusting its strategy indicates that the company is taking a sensible approach to the market where competition is often high as casinos seek to win more market share through marketing efforts.
City of Dreams Leads With Strong Gains
City of Dreams posted solid 4Q results, with operating income climbing to $150.88 million from $88.53 million in 4Q24. Adjusted property EBITDA followed suit, rising to $193.71 million from $140.08 million a year earlier. Total gross gaming revenue (GGR) at the property grew 14 percent year-on-year to $764 million, driven by mass GGR up 10 percent to $539 million.
VIP GGR saw a sharper lift, jumping 36 PERCENT to $200 million, though slot GGR dipped 22 percent to $25 million. VIP rolling chip volume edged up just 1 percent to $6.28 billion, but the win rate improved 83 basis points to 3.18 percent. Mass table drop rose 14 percent to $1.74 billion, even as hold slipped 107 basis points to 31 percent.
Melco is taking a prudent approach to the Macau market as it is deciding to stick with the current strategy rather than increasing costs to win more market share. The company is planning to open its renovated Countdown Hotel gradually this year. In addition, the retail space will also be renovated, as well as the food and beverage offerings at City of Dreams. Winkler said while few show-only visitors head straight to gaming, the exposure introduces thousands to the property’s wider offerings each performance.
Studio City Posts Modest Improvements
The operating income at the other Cotai Strip flagship casino, Studio City, has also improved to $29.56 million compared to $23.02 million in 4Q24. As a result, the adjusted property EBITDA has also improved to $86.59 million compared to $81.24 million. The GGR has also improved by 7 percent year-over-year to $343 million. The GGR is only from mass and slots as the casino has no VIP operations. Mass GGR climbed 10 percent to $314 million, with the mass table dropping 4 percent to $932 million and holding rising 159 basis points to 33.7 percent. Slot GGR edged down 3 percent to $28 million.
Altira and Closures Weigh on Other Operations
Other Macau operations took a hit, with Altira Macau posting an operating loss of nearly $6.3 million in 4Q25, wider than the $2.5 million loss in 4Q24. Adjusted property EBITDA swung to negative $3.5 million from negative $251,000. Total GGR fell 9 percent to $29 million, with mass GGR down 16 percent to $24 million despite a 22 percent jump in mass table drop to $153 million. Mass table hold plunged 714 basis points to 15.6 percent, while slot GGR rose 46 percent to $5 million.
Melco shut its satellite Grand Dragon Casino in September 2025 and ceased operations at Mocha Grand Dragon and Mocha Hotel Royal in 4Q. The company has also moved 15 tables from Grand Dragon to Studio City. In addition, 90 tables were also moved to the same casino. The company has also moved 108 tables to Studio City, 137 tables to City of Dreams, and 100 tables to Altira Macau. The group now runs 3 Mocha Clubs: Inner Harbor, Golden Dragon, and Sintra Hotel.
Mocha segment operating revenues dropped to $20 million from $29.3 million in 4Q24, with adjusted EBITDA at $4.4 million versus $5.7 million. Gaming machine handle fell to $471.4 million from $516.7 million, though the win rate ticked up to 4.3 percent from 4.1 percent.
Cotai Core Holds Firm Amid Adjustments
Melco’s Cotai properties, City of Dreams and Studio City, carried the load in 4Q, with gains in operating income and EBITDA reflecting solid mass play and targeted upgrades. Altira’s struggles and venue closures show a pruning of underperformers, freeing tables and machines for higher-return spots. The stable outlook signals confidence in this mix, even as competition heats up, with no big spend increases planned to shift the balance.
Source: Asia Gaming Brief (AGB)
