Melco Resorts & Entertainment (MLCO) Q2 2026 earnings summary

Executive summary

• Global presence with integrated resorts in Macau, the Philippines, Cyprus, and Sri Lanka, recognized for operational excellence and over 1,400 awards, including 19 Five-Star Forbes Travel Guide awards in 2026.

• Management remains confident in long-term prospects and Macau outlook, focusing on operational efficiency, stakeholder value, and ongoing property investments.

• Priorities include deepening customer engagement, attracting high-quality visitation, and continued property investment.

• REM hotel in Macau soft opened, with phased grand opening after Golden Week in October 2026, offering a unique luxury experience.

• Retail revamp at City of Dreams Macau underway, expected to enhance the integrated resort experience by mid-2027.

Financial highlights

• Q2 2026 operating revenues were $1.252 billion, down 5.7–6% year-over-year; gaming revenue fell 5.5%, non-gaming revenue dropped 6.7%.

• Adjusted Property EBITDA for Q2 2026 was $304 million (hold-adjusted $312 million), down 19.6% year-over-year; margin declined to 24.7%.

• Net income attributable to shareholders rose to $22.7 million, up 12.8% year-over-year.

• City of Dreams Manila delivered $31 million in property EBITDA, up 9% year-over-year.

• City of Dreams Mediterranean and Cyprus satellite casinos saw property EBITDA rise 60% year-over-year.

Outlook and guidance

• Expect to maintain Macau daily OpEx at $3.3–$3.4 million, including House of Dancing Water and REM ramp-up.

• Guidance for Q3 2026: depreciation and amortization $140–$145 million, corporate expense $20–$25 million, net interest expense $115–$120 million.

• CapEx guidance: $225 million for remainder of 2026, $275–$300 million for 2027.

• Dividend expected to recommence in 2027, aiming for a substantive payout.

• Ongoing investments and efficiency initiatives are expected to position the business for future demand growth.