Melco Resorts & Entertainment Limited

Melco Resorts reported second-quarter 2026 adjusted property EBITDA of approximately $304 million, or approximately $312 million when adjusted for VIP hold. An unfavorable win rate at COD Macau reduced property EBITDA by about $9 million, and the VIP win rate there declined to 2.7% from 3.9% in Q2 2025. Macau total daily OpEx was about $3.4 million per day, including House of Dancing Water, in line with prior guidance. Outside Macau, City of Dreams Manila property EBITDA was $31 million, up 9% year over year; Cyprus property EBITDA rose 60% year over year; and Sri Lanka casino operations posted positive EBITDA of $3.5 million. For Q3 2026, Melco expects D&A of about $140 million to $145 million, corporate expense of about $20 million to $25 million, and consolidated net interest expense of about $115 million to $120 million, including about $6 million of finance liability interest and about $5 million of finance lease interest. Management said available liquidity was about $2.8 billion and consolidated cash on hand was about $1 billion at quarter-end. The company repurchased about 22.4 million ADSs for about $121 million from April 1 to August 12, bringing 2026 repurchases to about 25 million ADSs for about $134 million. For CapEx, management said about $225 million remains for the rest of 2026 and about $275 million to $300 million is expected for 2027.

Lawrence Ho said the company remains confident in Macau’s long-term strength despite near-term headwinds. He highlighted REM and the City of Dreams retail revamp as key property-level initiatives intended to deepen customer engagement and create a more distinctive integrated resort offering. He also emphasized disciplined operations, saying the company is aligning resources to the highest-return opportunities while protecting the guest experience.

Geoff Davis focused on margin pressure, saying lower visitation and lower hold hurt Q2 results and that Macau VIP win rate weakness had a roughly $9 million negative impact on property EBITDA. He said Macau OpEx stayed steady at about $3.4 million per day and that the company is looking for more flexibility in the cost base, with Q3 OpEx expected to remain around $3.3 million to $3.4 million including House of Dancing Water. On the balance sheet, he cited about $2.8 billion of available liquidity, about $1 billion of cash, and the recent extension and upsize of the revolving credit facility to $2.8 billion with maturity extended to June 2031. He also walked through financing moves at Studio City and reiterated that, after about $134 million of 2026 buybacks, the company currently expects to restart dividends in 2027.

Analysts focused on REM’s differentiation, dividend timing, capex, 2027 debt handling, and whether World Cup activity pulled gaming spend away from Macau. Management said REM is unlike anything in Macau, is already soft open, and will have a grand opening after Golden Week in October, but also warned of retail construction disruption through roughly mid-2027. On dividends, Geoff Davis said the company pushed its timeline out to 2027 and wants the payout to be substantive rather than nominal. On World Cup effects, management said the event likely had a larger-than-usual impact this year, temporarily diverting some gaming wallet into sports betting, but that customer volumes and plane traffic had normalized by late July and early August.