Melco’s shares close 12.14 per cent higher in New York Wednesday, with Q3 revenue decrease attributed to softer performance in rolling chip and mass market table games
Melco Resort & Entertainment has reported a 10 per cent drop in total operating revenue to $1.17 billion for the third quarter of 2026, with adjusted property EBITDA down 24 per cent at $287.6 million.
Revenue from Melco’s flagship City of Dreams venue in Macau fell by 16 per cent to $566.2 million, with adjusted EBITDA down 37 per cent at $130.3 million, primarily a result of softer rolling chip and mass market table games performance.
Rolling chip volume declined 17 per cent to $4.63 billion at a win rate of 2.49 per cent (Q3 2025: 3.68 per cent), while mass market table games drop decreased by 2 per cent to $1.63 billion at a hold percentage of 29.5 per cent (Q3 2025: 29.8 per cent). Gaming machine handle was 3 per cent lower at $1.01 billion at a win rate of 3.6 per cent (Q3 2025: 3.2 per cent).
Non-gaming revenue at City of Dreams fell 7 per cent to $88.4 million during the third quarter.
Studio City revenue fell by 8 per cent to $346.2 million in Q3, with adjusted EBITDA down 13 per cent at $90.6 million.
Mass market table games drop declined by 10 per cent to $846.3 million at a hold percentage of 34.3 per cent (Q3 2025: 33.1 per cent), while gaming machine handle climbed 2 per cent to $892.9 million at a win rate of 3.4 per cent (Q3 2025: 3.7 per cent).
Non-gaming revenue at Studio City was 6 per cent lower at $80.4 million.
Altira Macau revenue increased by 22 per cent to $31.3 million, but generated negative adjusted EBITDA of $0.3 million, compared with $0.7 million in the prior year period.
Mass market table games drop was 29 per cent higher at $145.2 million at a hold percentage of 20.0 per cent (Q3 2025: 19.4 per cent), while gaming machine handle doubled to $240.4 million at a win rate of 2.8 per cent (Q3 2025: 3.1 per cent). Non-gaming revenue rose 8 per cent to $5.5 million.
Revenue from Mocha fell by 46.5 per cent to $15.3 million, including results for three remaining Mocha Clubs – Mocha Inner Harbour, Mocha Golden Dragon and Mocha Hotel Sintra. Adjusted EBITDA fell by 26 per cent to $4.3 million. Gaming machine handle decreased by 26 per cent to $386.8 million as the win rate remained stable at 4.0 per cent.
City of Dreams Manila’s revenue fell by 10.5 per cent to $99.0 million, with adjusted EBITDA for the period down 20 per cent at $32.9 million, primarily a result of softer performance in all gaming operations.
Rolling chip volume fell 6 per cent year-on-year to $484.5 million at a win rate of 4.09 per cent (Q3 2025: 4.37 per cent), while mass market table games drop also declined by 6 per cent to $134.9 million with a hold percentage of 33.6 per cent (Q3 2025: 36.0 per cent). Gaming machine handle was 3 per cent lower at $954.4 million at a stable win rate of 5.1 per cent. Non-gaming revenue was 5 per cent lower at $22.8 million.
Revenue from City of Dreams Mediterranean and Other increased by 13 per cent to $96.7 million, with adjusted EBITDA rising 11 per cent to $25.7 million as a result of a strong mass market performance. Non-gaming revenue rose 10.5 per cent to $33.6 million.
Other Operations contributed revenue of $17.6 million and adjusted EBITDA of $4.0 million during the quarter, including the company’s casino operations at City of Dreams Sri Lanka and the provision of management services to the Nüwa hotel at the property.
Across all segments, Melco’s adjusted property EBITDA fell by 24 per cent to $287.6 million in the third quarter.
“We continue to be confident in the long-term prospects of our businesses in Macau,” said Melco chairman and CEO Lawrence Ho. “We are focused on disciplined execution of our strategy to drive strong returns. Our distinctive product portfolio in Macau reflects the best in luxury and innovation. Coupled with the opening of our newly branded hotel REM and the renovation of our retail space at City of Dreams, we believe we are well positioned to capture the demands of our evolving customer base, supporting long-term growth.
“In the Philippines and Cyprus, our properties continued to demonstrate resilience despite the ongoing headwinds in those countries and regions. In particular, City of Dreams Mediterranean and our satellite casinos delivered its highest quarterly EBITDA on record.”
Third Quarter and 9M 2026 Results Comparison (US$000s)
| Q3 2026 | Q3 2025 | 9M 2026 | 9M 2025 | |
| Revenue | 1,173,515 | 1,309,507 | 3,792,427 | 3,870,026 |
| Operating Costs and Expenses: | ||||
| Casino | (625,100) | (674,624) | (2,046,454) | (2,033,228) |
| Rooms | (41,290) | (38,623) | (120,2470 | (111,186) |
| Food and Beverage | (62,874) | (60,041) | (185,480) | (181,779) |
| Entertainment, Retail and Other | (26,864) | (27,560) | (73,549) | (74,078) |
| General and Administrative | (165,423) | (167,005) | (511,281) | (480,449) |
| Payments to the Philippine Parties | (8,155) | (10,213) | (24,292) | (28,514) |
| Pre-Opening Costs | (1,676) | (7,393) | (3,269) | (50,416) |
| Development Costs | (1,706) | (996) | (4,134) | (6,266) |
| Amortization of Land Use Rights | (4,962) | (4,984) | (14,903) | (14,966) |
| Depreciation and Amortization | (133,347) | (133,323) | (400,140) | (387,687) |
| Property Charges and Other | (1,902) | (234) | (1,705) | (47,400) |
| Operating Income | 100,216 | 184,511 | 406,973 | 454,037 |
| Total Non-Operating Expenses, Net | (107,662) | (121,606) | (318,168) | (337,520) |
| Income Tax Expense | (1,655) | (845) | (16,476) | (17,355) |
| Net Income / (Loss) | (9,101) | 62,060 | 72,239 | 99,162 |
| Net Loss Attributable to Non-Controlling Interests | 9,135 | 12,626 | 27,198 | 25,248 |
| Net Income Attributable to Melco | 34 | 74,686 | 99,527 | 124,410 |
| Basic EPS | $0.00009 | $0.06375 | $0.08684 | $0.10356 |
| Diluted EPS | $0.00009 | $0.06307 | $0.08644 | $0.10303 |
Across all segments, Casino revenue was 11.5 per cent lower at $939.2 million in the third quarter, while Rooms revenue rose 3 per cent to $122.5 million. Food and Beverage revenue fell 3 per cent to $71.2 million and revenue from Entertainment, retail and other declined 28 per cent to $40.6 million.
Total operating costs and expenses were 4.5 per cent lower at $1.07 billion, including Casino expenses of $625.1 million (-7 per cent).
Operating income fell 46 per cent to $100.2 million, while non-operating expenses of $107.7 million took Melco to a net loss of $9.1 million for the quarter, compared to net income of $62.1 million in Q3 2025.
For the nine-month period, total revenue was 2 per cent lower at $3.79 billion, generating operating income of $407.0 million (-10 per cent) and net income of $72.3 million (-27 per cent).
At the end of September, the company had total cash and bank balances of $886.6 million, including $124.2 million of restricted cash, and total debt of $6.98 billion.
Shares in Melco Resort & Entertainment Ltd (NASDAQ:MLCO) closed 12.14 per cent at $4.71 per share in New York Wednesday.