Melco International Development (200) Q2 2025 earnings summary

Executive summary

• Total operating revenues reached $1,328M in 2Q'25, up 14.5% year-over-year, and net income was $9M, reversing a prior loss.

• Adjusted Property EBITDA grew 24.7% year-over-year to $378M, with continued global expansion and property enhancements in Macau and other regions.

• Net revenues for the six months ended 30 June 2025 rose 12.4% to HK$19.96 billion, with Adjusted EBITDA up 19.5% to HK$5.37 billion.

• Profit attributable to owners was HK$350.8 million, reversing a loss of HK$253.2 million in the prior year period.

• Strategic property enhancements, new entertainment offerings, and cost optimization supported growth across Macau, the Philippines, and Cyprus.

Financial highlights

• Gaming revenue increased 16.2% year-over-year to $1,096M; non-gaming revenue rose 7.4% to $233M.

• Casino revenues grew 13.9% year-over-year to HK$16.54 billion; non-gaming revenues also increased.

• Adjusted EBITDA margin for the group was 27.6% in 2Q'25, up from 26.2% in 2Q'24; Adjusted EBITDA margin improved to 26.9% from 25.3% year-over-year.

• Basic earnings per share was HK$0.18, compared to a loss per share of HK$0.13 last year.

• Net asset value per share rose to HK$0.4 from HK$0.02 at year-end 2024.

Outlook and guidance

• Depreciation & amortization expected at $135-140M for 3Q'25; corporate expenses projected at $25-30M; net interest expense guidance for 3Q'25 is $115-120M.

• Macau tourism is rebounding, with visitor arrivals up 14.9% year-over-year in H1 2025.

• Ongoing renovations and rebranding at City of Dreams Macau, including retail area revamp and hotel updates.

• City of Dreams Sri Lanka opened in August 2025, marking expansion into South Asia.

• Strategic review underway for City of Dreams Manila to optimize capital allocation.