Melco Resorts & Entertainment (MLCO) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results with total operating revenues of $1.33 billion, up 15% year-over-year, driven by record mass table games revenue and increased visitation at City of Dreams and Studio City.

• Non-gaming revenue grew, supported by the relaunch of House of Dancing Water, which saw 98% theater occupancy and boosted property visitation by 31% year-over-year.

• City of Dreams Sri Lanka, the first integrated resort in South Asia, is set to open August 1, 2025, targeting the premium Indian customer segment.

• Recognized for a diverse, award-winning product portfolio, operational excellence, and progress in ESG initiatives targeting carbon neutrality and zero waste by 2030.

• Focused on stakeholder value, maintaining a strong balance sheet and liquidity.

Financial highlights

• Group-wide adjusted property EBITDA grew 25% year-over-year to $378 million; adjusted for VIP hold, EBITDA was $354 million.

• Total operating revenues for Q2 2025 were $1.33 billion, up 15% year-over-year.

• Net income reached $17.2 million, with adjusted net income attributable to shareholders at $92.3 million.

• Macau property EBITDA margin reached 29.2%, the second highest on record.

• Available liquidity stood at $2.27 billion, with $1.24 billion in consolidated cash on hand at quarter end.

Outlook and guidance

• Cautiously optimistic for strong results in Macau for the remainder of the peak season, with record daily visitation in July and positive forward bookings.

• Q3 2025 guidance: depreciation and amortization of $135–$140 million, corporate expense of $25–$30 million, and net interest expense of $115–$120 million.

• Expense base in Macau expected to remain at $3 million per day, with ongoing focus on cost discipline and optimization.

• Management expressed confidence in continued growth, citing strategic initiatives and cost efficiencies.

• City of Dreams Sri Lanka opening expected to provide new opportunities as the market matures.