Low hold at flagship property City of Dreams Macau and a significant impact from the FIFA World Cup saw Macau’s Melco Resorts & Entertainment report a 5.7% year-on-year decline in total operating revenues to US$1.25 billion in 2Q26, including a 5.5% fall in gaming revenue to US$1.04 billion.
Compared to the March quarter, total revenues in Q2 fell by 8.8%.
Releasing its quarterly results overnight, Melco also revealed a 20.4% year-on-year decline in Adjusted EBITDA to US$280 million with the market-wide headwinds experiences across Macau throughout the quarter slightly offset by improvements in Manila, Cyprus and Sri Lanka.
Net income attributable to Melco Resorts & Entertainment was US$22.7 million, improved from US$17.2 million a year earlier.
“We are confident in the long-term strength of our businesses and our outlook for Macau,” said Chairman and CEO Lawrence Ho.
“Despite near-term headwinds that are reflected in our second quarter results, our priorities continue to be to deepen customer engagement, attract high-quality visitation and continue investing in our properties to anticipate the changing needs of our guests.
“Outside of Macau, our diversified portfolio continued to demonstrate resilience and growth potential. In the Philippines, City of Dreams Manila delivered solid year-over-year growth despite the ongoing challenges in the country.
“In Cyprus, City of Dreams Mediterranean and our satellite casinos rebounded with considerable strength as disruptions in regional travel eased, with Property EBITDA in the second quarter of 2026 growing by 60% year-over-year.”
By property, City of Dreams Macau saw an 11% year-on-year decline in total operating revenues to US$632 million in 2Q26, mainly from a 35% fall in VIP GGR. The VIP win rate at the property fell from 3.9% a year earlier to 2.7%. Mass GGR of US$522 million was down 2% year-on-year while slot GGR grew 54% to US$44 million, with Adjusted EBITDA falling 35% to US$148 million.
At Studio City, total operating revenues fell 4% to US$371 million on a 1% decline in mass GGR to US$321 million and an 8% rise in slots GGR to US$37 million. Adjusted EBITDA was down 9% to US$96 million.
Altira reported a 20% year-on-year increase in total revenues to US$34 million with Adjusted EBITDA of US$2 million.
In the Philippines, City of Dreams Manila saw total operating revenues fall 1% to US$97 million although Adjusted EBITDA grew by 9% to US$31 million. While VIP GGR fell 13% to US$13 million and mass GGR by 9% to US$47 million, slots GGR rose by 4% to US$107 million.
At City of Dreams Mediterranean, total operating revenues were up 13% to US$82 million including a 12% increase in GGR to US$76 million and a 60% rise in Adjusted EBITDA to US$20 million. The property booked a negative VIP win for the quarter, however its core mass GGR segment was up 10% to US$39 million and slots GGR up 14% to US$37 million.
The company reported revenue of US$4 million from City of Dreams Sri Lanka.
In Melco’s 2Q26 earnings call, the group’s President and Director Evan Winkler noted that the World Cup had seen a larger impact than expected, particularly on Macau operations.
“If I look at activity on a post-World Cup basis, in the June and July period relative to other World Cup periods we were unfortunately surprised that the impact was more significant this year than it has been in past years,” he said.
“But coming out of that period, as we went into the late July and early August, I think we’ve seen a reversion to our normality. We’re seeing our customers come back. We’re seeing normal playing volumes. So, I think we saw a dip in terms of activity and that has now returned back to normalcy as we move forward into the back half of 2026.”
