Melco Resorts & Entertainment reported a 10.4% year-on-year decline in third-quarter operating revenue to $1.17 billion, as weaker gaming demand in Macau weighed on its performance across rolling chip, mass-market table games, and non-gaming operations.
Revenue for the three months ended September 30, 2026, was also down 6.4% from the second quarter. Adjusted Property EBITDA fell 24.4% year-on-year to $287.6 million, while net income declined to $34,000 from $74.7 million a year earlier.
At City of Dreams Macau, total gross gaming revenue (GGR) fell 14% year-on-year and 10% sequentially to $633 million. VIP GGR dropped 44% to $116 million, mass-market GGR declined 8% to $481 million, and slots GGR fell 12% to $37 million. Adjusted EBITDA decreased 37% to $130 million.
Studio City recorded a 7% decline in total GGR to $321 million. Mass-market GGR fell 7% to $290 million, while slots GGR decreased 4% to $31 million. Adjusted EBITDA dropped 13% to $91 million.
Melco President Evan Winkler said the slowdown was extending beyond high-end gamblers, with the company seeing weaker demand across customer segments.
“It is not just in the sort of top players that we are seeing weakness, Winkler said. “We are seeing some general softness.”
Chairman and CEO Lawrence Ho attributed the challenging market conditions partly to subdued consumer spending in mainland China, as well as possible after-effects from the FIFA World Cup in June and July and tax issues involving mainland Chinese residents’ overseas investments.
“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’s GGR fell 10% year-on-year to MOP21.68 billion ($2.7 billion) in October, marking a fifth consecutive monthly decline and the steepest drop in four months, according to government data.
Melco said it was maintaining a disciplined approach to promotional spending and player reinvestment rather than pursuing market share through higher incentives.
“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. He added that Melco was taking “an appropriate and disciplined approach” to promotional spending based on player performance.
Ho said: “The Macau market remains extremely competitive. We have been increasingly disciplined in allocating resources, with a sharper focus on customer acquisition and reinvestment, and ensuring every dollar invested strengthens returns.”
Outside Macau, City of Dreams Manila in the Philippines reported a 9% year-on-year decline in total GGR to $114 million. VIP GGR fell 13% to $20 million, mass-market GGR decreased 13% to $45 million, and slots GGR declined 3% to $49 million. Adjusted EBITDA fell 20% to $33 million.
In Cyprus, City of Dreams Mediterranean recorded a 13% year-on-year increase in total GGR to $88 million. Mass-market GGR rose 21% to $50 million, while slots GGR increased 5% to $38 million. Adjusted EBITDA grew 11% to $26 million, despite VIP GGR falling into negative territory.
Ho said: “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 their highest quarterly EBITDA on record.”
Melco’s daily operating expenses in Macau fell to approximately $3.2 million in the third quarter, below previous guidance. The company expects capital expenditure of about $95 million in the fourth quarter, taking full-year spending to approximately $375 million. Spending is forecast to decline to around $275 million in 2027.
The operator recently opened REM, a rebranded and refurbished 150-room hotel at City of Dreams Macau, and is renovating retail and dining areas. Completed sections are expected to open progressively from the end of 2026, with a substantial portion scheduled to become operational before Chinese New Year. Construction is expected to continue into summer 2027.
“Once complete, City of Dreams will offer the most interactive retail and dining experience in Macau, one that is truly second to none,” Ho added.
Melco has also pledged MOP828 million to the Macau Government Guidance Fund, part of a combined MOP9 billion commitment by the city’s six casino operators. The fund aims to support economic diversification and reduce Macau’s reliance on gambling.
“We’re always happy to support the government in their initiatives,” Ho stated. “The most important thing for Melco and our fellow competitors in the industry is that this counts towards our stated investment.”
“It does remove some of the uncertainties of having to do more events or other things,” he added.