Melco Resorts Q3 revenue down 10.4% as Macau demand softens

Melco Resorts & Entertainment reported a 10.4% decline in revenue for Q3 2026 to $1.17 billion, citing weaker casino spending in Macau that hit both VIP and mass-market segments. Adjusted Property EBITDA fell 24.4% to $287.6 million, and quarterly net income dropped to $34,000, down from $74.7 million a year earlier.

Earnings by market and property

City of Dreams Macau generated $633 million in gross gaming revenue in Q3, a 14% decline year-on-year. VIP revenue at the property plunged 44% to $116 million. Mass-market gaming revenue decreased 8% to $481 million, and slot revenue fell 12% to $37 million. Adjusted EBITDA at City of Dreams Macau declined 37% to $130 million.

Studio City saw gaming revenue drop 7% to $321 million, with adjusted EBITDA down 13% to $91 million.

City of Dreams Mediterranean in Cyprus was the outperformer outside Greater China, producing $88 million in gross gaming revenue, up 13% year-on-year. Mass-market gaming at the Mediterranean complex rose 21% to $50 million, slot revenue increased 5% to $38 million, and adjusted EBITDA reached $26 million, an 11% improvement.

City of Dreams Manila recorded a 9% decline in gaming revenue to $114 million. VIP and mass-market gaming each fell 13%, and adjusted EBITDA at Manila declined 20% to $33 million.

Costs, capital and operating discipline

Melco reduced daily operating expenses across its Macau properties to approximately $3.2 million, a figure management said was below prior expectations. The company also trimmed future investment plans, forecasting capital expenditure of approximately $375 million for 2026 and $275 million for 2027.

Management signalled tighter control over promotional spend rather than increasing incentives to chase market share. President Evan Winkler said:

"As you go into a period of lower demand, you’re not trying to chase unhealthy levels of reinvestment to get the business that’s there."

Melco recently opened REM, a refurbished 150-room hotel at City of Dreams Macau, and is upgrading retail and dining facilities with phased reopenings starting late 2026 and construction continuing into summer 2027.

The company committed MOP828 million to the Macau Government Guidance Fund, part of a combined MOP9 billion contribution from six casino operators. Melco expects its contribution to count toward existing investment commitments under its Macau gaming concession.

Management view and market context

CEO Lawrence Ho attributed weaker demand partly to reduced consumer spending in mainland China, the FIFA World Cup and tax issues tied to overseas investments. He said City of Dreams Mediterranean and its satellite casinos achieved record quarterly EBITDA despite difficult regional conditions.

"The market is challenging right now," Ho said. "The main thing is really the consumption part of the Chinese economy tends to be a bit weak."

Macau government figures showed casino gross gaming revenue declined 10% year-on-year to MOP21.68 billion in October 2026, marking the fifth consecutive month of annual declines; October GGR was roughly 20% higher than September 2026.

What the results leave on the table

The quarter shows a split between underperformance in Macau and stronger contributions from Cyprus. Management has prioritised cost control and reduced capital plans while maintaining selective property investment and contributing to the Macau Government Guidance Fund. For more on regional casino markets see coverage in our casino and regulation sections.