Melco Resorts reports 10.4% drop in Q3 2026 revenue and trims spending

Melco Resorts & Entertainment reported a 10.4% decline in revenue in the third quarter of 2026 to $1.17 billion, and a 24.4% drop in Adjusted Property EBITDA to $287.6 million. The company recorded a quarterly net profit of only $34,000, compared with $74.7 million a year earlier.

Results by property and markets

City of Dreams Macau generated $633 million in gross gaming revenue (GGR) in the quarter, a 14% year‑on‑year decline. The VIP segment was the most affected: VIP revenue fell 44% to $116 million. Mass gaming decreased 8% to $481 million and slot revenue declined 12% to $37 million. City of Dreams Macau's Adjusted EBITDA fell 37% to $130 million.

Studio City recorded a 7% decline in gaming revenue to $321 million and a 13% drop in adjusted EBITDA to $91 million.

City of Dreams Mediterranean, in Cyprus, contrasted with weakness in Asia: GGR rose 13% to $88 million, mass gaming increased 21% to $50 million and slot revenue grew 5% to $38 million. Adjusted EBITDA was $26 million, up 11%.

City of Dreams Manila showed a 9% contraction in gaming revenue to $114 million; both VIP and mass fell 13% and adjusted EBITDA decreased 20% to $33 million.

Spending management and investment outlook

The company said it is moderating promotions and avoiding raising incentives to protect margins in a lower‑demand market. Chairman Evan Winkler explained:

“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,” Winkler said.

Daily operating costs at Macau properties fell to approximately $3.2 million, below prior expectations. Melco expects capital spending of approximately $375 million for 2026 and $275 million for 2027.

Demand factors and macro figures in Macau

CEO Lawrence Ho attributed weaker demand to reduced consumer spending in mainland China, the FIFA World Cup and tax issues tied to overseas investment. Ho said:

“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.”

Government figures for Macau showed casino GGR fell 10% year‑on‑year to MOP21.68 billion in October, the fifth consecutive month of annual declines; however, October receipts rose roughly 20% versus September.

Hotel investments and contribution to Macau fund

Melco opened REM, a refurbished 150‑room hotel at City of Dreams Macau, and continues to upgrade retail and F&B, with re‑openings from late 2026 and works planned through summer 2027. The company committed MOP828 million to the Macau Government Guidance Fund, part of a combined MOP9 billion contribution from six operators. Melco expects its contribution to count toward its investment commitments under its Macau gaming concession.

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