Research Reports

Summary

Melco Resorts reported unaudited first quarter 2026 total operating revenues of $1.37 billion (+11% YoY), Adjusted Property EBITDA of $381.0 million (+12% YoY), and net income attributable to the Company of $76.8 million ($0.20 per ADS), driven by improved mass market performance across Macau properties and strong growth at City of Dreams Manila.

Key takeaways

Total operating revenues were $1.37 billion for Q1 2026, up 11% from $1.23 billion in Q1 2025 — reflects broad-based recovery in Macau mass market operations.

Adjusted Property EBITDA was $381.0 million, up 12% YoY; Macau Property EBITDA rose 12% to $334 million with EBITDA margin improving to ~28% — signals enhanced operational efficiency.

City of Dreams Manila Adjusted EBITDA rose 24% YoY to $37.4 million on stronger rolling chip volume ($460.1M vs. $351.9M) and higher win rate (5.18% vs. 2.98%), despite industry headwinds.

City of Dreams Mediterranean and Other Adjusted EBITDA declined to $9.0 million from $11.6 million YoY due to Middle East conflict–driven tourism disruption, with rolling chip volume collapsing to $0.2M from $11.9M.

Company launched a new $500 million share repurchase program effective April 30, 2026, in addition to $210 million remaining under the 2024 program — signals capital return confidence.

Cash and bank balances totaled $1.07 billion as of March 31, 2026 (including $124.4M restricted cash); total debt stood at $6.67 billion; available liquidity was ~$2.36 billion.

Full analysis

Melco Resorts’ Q1 2026 results reflect a continued recovery in its core Macau operations, led by robust mass market performance across City of Dreams, Studio City, and Altira Macau — all reporting double-digit revenue and Adjusted EBITDA growth year-over-year. City of Dreams drove the largest absolute contribution, with revenues rising to $734.6 million (+12%) and Adjusted EBITDA to $214.4 million (+9%), supported by higher mass market table games drop ($1.71B vs. $1.59B) and improved hold percentage (31.6% vs. 30.2%). Studio City’s EBITDA grew 15% to $111.7 million despite flat mass market drop, indicating strong flow-through from elevated hold (36.9% vs. 32.8%). Altira Macau turned around from negative EBITDA in Q1 2025 to $4.1 million, signaling stabilization. In contrast, City of Dreams Mediterranean suffered materially due to regional geopolitical instability: rolling chip volume collapsed 98% to $0.2 million, dragging EBITDA down 22% to $9.0 million, while non-gaming revenue fell 32%. City of Dreams Manila delivered standout growth — 24% EBITDA expansion on higher rolling chip volume and an unusually high 5.18% win rate (well above the 2.85–3.15% target range), though mass market drop declined slightly. Management attributed overall improvement to disciplined cost management and strategic focus on profitability enhancement. The launch of a new $500 million buyback program — alongside $210 million remaining under the prior authorization — underscores confidence in cash generation and balance sheet strength, especially given $2.36 billion in available liquidity against $6.67 billion in debt. No forward guidance was provided in the release.