Melco Resorts & Entertainment reported stronger first-quarter results for 2026, with profit more than doubling as its Macau operations continued to drive group performance and overseas properties delivered mixed results.

For the three months ended March 31, the casino operator recorded total operating revenue of nearly US$1.37 billion, up 10.9 percent from the prior-year period. Operating income increased to US$179.0 million from US$144.9 million a year earlier, while net profit rose 136.2 percent to US$76.8 million.

Adjusted property EBITDA reached just under US$381.0 million, an increase of 11.7 percent year-on-year. The company attributed the improvement mainly to stronger operating leverage, supported by growth across its core Macau properties.

“We delivered a strong first quarter with both group property EBITDA and Macau property EBITDA growing by 12% year-over-year,” founder, chairman and CEO Lawrence Ho said in an earnings call. “We saw solid growth across all segments.”

Macau Properties Lead Q1 Performance

Macau remained the main contributor to Melco’s quarterly growth. City of Dreams Macau generated US$734.6 million in revenue during the quarter, with adjusted EBITDA rising to US$214.4 million from US$195.9 million in the same period last year.

The improvement reflected stronger mass-market table games and non-gaming activity. Gross gaming revenue at the property rose 11 percent year-on-year to US$813 million. Mass gaming increased, slot performance improved sharply, and VIP activity remained broadly stable compared with last year while rising sequentially from the previous quarter.

Studio City also posted gains, with revenue reaching US$392.0 million and adjusted EBITDA climbing to US$111.7 million. Its gross gaming revenue rose 11 percent to US$373 million, helped by mass-market strength and a mass hold rate of 36.9 percent. Slot GGR also rose 24 percent to US$41 million.

Altira Macau returned to positive adjusted EBITDA of US$4.1 million. The property recorded revenue of US$38.1 million, while gross gaming revenue increased 47 percent year-on-year to US$41 million.

Across Macau, property EBITDA rose approximately 12 percent year-on-year to US$334 million, while the property EBITDA margin improved to around 28 percent.

“In Macau, property EBITDA grew by approximately 12 percent year-over-year to US$334 million and property EBITDA margin improved to approximately 28 percent,” Ho said.

Manila Recovers While Cyprus Faces Pressure

Outside Macau, City of Dreams Manila delivered a stronger quarter despite competition and broader industry challenges. The property reported adjusted EBITDA of US$37.4 million, up 24.3 percent year-on-year.

The company said the increase was mainly due to improved rolling chip operations. Rolling chip volume at City of Dreams Manila reached US$460.1 million, compared with US$351.9 million in the first quarter of 2025. The win rate also increased to 5.18 percent from 2.98 percent a year earlier.

Gross gaming revenue at the Manila property rose 9 percent to US$119 million, supported by a 128 percent increase in VIP gaming revenue to US$24 million. Mass GGR declined year-on-year but improved from the previous quarter.

“In the Philippines, City of Dreams Manila exhibited solid performance despite heightened competition and continued industry headwinds that continued into 2026, with property EBITDA rising by 24 percent year-over-year,” Ho stated.

Cyprus delivered revenue growth but lower earnings. City of Dreams Mediterranean and its satellite casinos generated US$65.3 million in operating revenue, up 11.6 percent year-on-year. Adjusted EBITDA fell to US$9.0 million from US$11.6 million.

Ho said the conflict in the Middle East, which began in late February, affected tourism arrivals. “We are closely monitoring developments and will remain operationally flexible as we position the business for a recovery in travel demand,” he added, as reported by GGRAsia.

The group also generated revenue from its Sri Lanka operations, where City of Dreams Sri Lanka opened in August last year. That segment produced US$14.3 million in revenue and around US$300,000 in adjusted EBITDA.

Buyback Programme Added After Stronger Quarter

Melco’s revenue growth outweighed higher operating costs, which rose 9 percent to US$1.19 billion. Pre-tax profit reached US$78.0 million, up 141 percent, and net profit after tax came in at US$70.9 million before accounting for non-controlling interests.

Casino operations accounted for US$1.15 billion of revenue. Rooms contributed US$108.5 million, food and beverage generated US$65.8 million, while entertainment, retail and other segments brought in US$42.1 million.

As of March 31, Melco held cash and bank balances of US$1.07 billion, while total debt stood at US$6.67 billion. Available liquidity was approximately US$2.36 billion. Capital expenditure for the quarter totaled US$73.6 million, mainly tied to enhancement projects in Macau.

The company also announced a new US$500 million share repurchase programme. This comes in addition to an existing buyback plan, under which Melco still has authority to repurchase approximately US$210 million of ordinary shares.

Looking ahead, Melco did not provide formal full-year guidance, but management pointed to stable costs and early signs of improvement heading into the second quarter, including stronger occupancy and player quality around the May holiday period.