0001193125-26-105023
SEC filingMelco Resorts & Entertainment Limited reported strong FY 2025 results with operating revenues of $5.16B, up 11.3% YoY from $4.64B in 2024, driven by robust recovery in Macau gaming operations amid increased inbound tourism. Casino revenues, comprising 82.3% of total, rose 12.6% to $4.25B, led by City of Dreams ($2.74B, +19.9% YoY) and Studio City ($1.48B, +6.4% YoY). Operating income improved to $600.4M (+23.8% YoY), reflecting higher volumes and operational efficiencies, though offset by elevated costs including $657.4M G&A (+15.6%) and $50.6M pre-opening expenses. Net income attributable to Melco Resorts reached $185.0M, a significant turnaround from $43.5M in 2024, with diluted EPS at $0.00 (basic $0.00). Adjusted EBITDA grew 15.3% to $1.32B, highlighting property-level strength (City of Dreams $822M, +32.3%). Balance sheet shows $7.60B total assets, $1.02B cash, but $6.75B long-term debt and $1.25B shareholders' deficit. Operating cash flow strengthened to $818M (+30.5% YoY), supporting $342M capex. FY 2025 performance underscores Macau dominance (86% revenues) and diversification via Philippines/Cyprus, positioning for sustained growth amid tourism rebound.
Melco Resorts delivered robust FY 2025 performance with operating revenues reaching $5.16B, a 11.3% YoY increase from $4.64B in 2024, fueled by Macau's tourism rebound. Casino revenues surged 12.6% to $4.25B (82.3% of total), driven by higher volumes across properties. Operating income climbed 23.8% to $600.4M, while net income attributable to Melco Resorts hit $185.0M, up from $43.5M, reflecting operational leverage. Adjusted EBITDA rose 15.3% to $1.32B, with City of Dreams contributing $822.1M (+32.3% YoY). Balance sheet shows $7.60B assets, $1.02B cash, but elevated $6.75B long-term debt and $1.25B shareholders' deficit. Operating cash flow strengthened 30.5% to $818.1M, funding $342M capex. Macau operations dominated at 86% of revenues, underscoring geographic concentration amid diversification efforts in Philippines and Cyprus.
Casino revenues led growth at $4.25B (+12.6% YoY), comprising 82.3% of total. City of Dreams generated $2.74B (+19.9% YoY, 53.0% share), benefiting from rolling chip volume up 16.7% to $23.4B and mass table drop +14.8%. Studio City contributed $1.48B (+6.4% YoY, 28.6% share) with mass table hold improving to 33.4%. City of Dreams Manila declined to $411.1M (-13.0% YoY, 8.0% share) amid softer demand. Cyprus operations grew to $300.2M (+27.9% YoY, 5.8% share). Non-casino revenues rose 5.9% to $916.3M, with rooms up 5.1% to $444.0M. Geographic mix: Macau 86%, Philippines 8%, Cyprus 6%. Growth drivers include tourism recovery, House of Dancing Water relaunch, and Sri Lanka entry.
Gross margins improved implicitly via revenue leverage, though total operating costs rose 9.9% to $4.56B. Gaming taxes increased 10.0% to $2.00B (48.7% of casino revenues). G&A expenses climbed 15.6% to $657.4M due to trademark fees and payroll. Depreciation/amortization stable at $523.6M. Operating margin expanded to 11.6% from 10.5%. Net margin turned positive at 3.6% vs 0.9%. Adjusted EBITDA margin reached 25.5% (+1.0pp YoY), reflecting cost discipline amid volume growth. Property-level margins strong at City of Dreams (30.0%) and Studio City (26.6%).
Operating cash flow surged 30.5% to $818.1M, driven by $145.5M net income and $543.6M depreciation. Capex moderated to $342M (-29.5% YoY) for enhancements. Free cash flow $476.3M. Financing outflows $603.1M included $2.09B debt repayments offset by $1.67B proceeds. Debt reduced to $6.75B (net $6.75B), with 86% fixed-rate. Cash $1.02B + $125M restricted; liquidity $2.38B. Total assets $7.60B (-4.9% YoY); liabilities $8.50B. Shareholders' deficit -$1.25B.
Management highlights Macau tourism recovery and diversification via Philippines/Cyprus/Sri Lanka. Committed $1.73B Macau investment by 2032. Risks include China policy shifts, competition, debt maturities ($1.84B 2027), regulatory changes. Focus on premium mass, non-gaming enhancements amid $223M remaining repurchase authorization.