Melco Resorts Q2 2025 revenue hits $1.33bn; City of Dreams leads growth

Key points:

– Revenue increased to $1.33bn for Q2 2025, up 15% from Q2 2024, mainly due to higher casino takings

– Adjusted net income rose to $92.3m, up 225% from the same period last year

– Net income dropped to $17.2m, down 20% from a year earlier, due to higher pre-opening and property charges

– Chairman and CEO Lawrence Ho hopes this sets up a “solid foundation for continued growth”

Melco Resorts has posted its Q2 2025 results, building comeback energy in Macau and an expansion move into Sri Lanka right around the corner.

The company experienced growth across properties and steady mass market demand. However, there were challenges, especially as it took a large impairment and announced the closure of four locations.

Financial overview

For Q2 2025, total operating revenue reached $1.33bn, up around 15% from $1.16bn in the same quarter last year. This growth can be largely attributed to better performance in both gaming and non-gaming segments.

Operating income jolted slightly higher to $124.7m, up 0.81% from Q2 2024. Adjusted Property EBITDA showed improvement, rising to $377.7m from US$302.8m a year earlier, reflecting better operational efficiency.

Net income attributable to Melco was $17.2m or $0.04 per ADS, down 19.7% or $0.05 per ADS in Q2 2024. The decrease is partly due to a lower net loss attributable to noncontrolling interests, which was $7.8m versus $22.7m last year.

Casino figures breakdown

Melco’s Macau properties continue to dominate revenue generation, with City of Dreams being the top performer, accounting for nearly 60 percent of the gaming revenue across the portfolio.

City of Dreams reported total operating revenue of $710.5m for Q2 2025, up 23.3% a year earlier. This revenue growth helped push adjusted EBITDA sharply higher to $225.6m, compared with $165.1m in Q2 2024.

Over at Studio City, revenue grew to $388.2m with adjusted EBITDA rising to $105.2m, influenced by stronger mass market performance. Mass market drop remained steady near $958m, while hold percentage improved to 34.0%. Gaming machine handle soared to $916.1m, accompanied by a win rate boost to 3.7%.

In comparison, Altira Macau posted flat revenues at $28.3m but managed a small positive swing in EBITDA. Both mass market drop and gaming machine handle declined slightly.

Mocha and Other revenues dropped to $27.9m, with adjusted EBITDA falling to $5.2m. Meanwhile, City of Dreams Manila experienced a revenue decrease to $98.5m and EBITDA slipped to $28.4m, despite higher rolling chip volume.

Good to know: Melco Resorts & Entertainment owns and operates seven integrated resort properties across Asia and Europe, including locations in Macau, the Philippines, Cyprus and Sri Lanka

Future outlook

Looking ahead to the remainder of 2025, the operator plans to focus on operational efficiencies and cost controls. Regulatory uncertainties in Macau and regional competition remain risks with the company pointing out slower economic growth in China. Despite these factors, Melco remains committed to its long-term growth strategy.

Ho 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.”

Melco’s Q2 revenue jumped 8.1% from Q1’s $1.23bn, building on their earlier momentum when the company said it had “found its groove again.”

Despite gains in Q2 Melco faces growing competition and challenges that could test its ability to sustain momentum, but we shall have to wait and see when Q3 results drop.