$1.37B Revenue, $381M EBITDA: Melco Resorts Delivers Strong Q1 Under CEO Lawrence Ho

Melco Resorts & Entertainment Limited has started 2026 on a solid footing, reporting first-quarter results that show steady improvement across its integrated resort portfolio. Total operating revenue came in at US$1.37 billion, marking an 11 percent increase year-on-year, largely supported by stronger performance in mass market gaming.

Adjusted Property EBITDA reached US$381 million for the quarter, while operating income rose to US$179 million. Net income attributable to the company stood at US$76.8 million, more than double the US$32.5 million recorded in the same period last year.

Taken together, the numbers point to a business that is not only recovering but also stabilising, with both gaming and non-gaming segments contributing to the overall result.

Macau Shift: Mass Market Now Driving Margins, Not Just Volume

According to Chairman and CEO Lawrence Ho, the quarter’s performance in Macau continued to benefit from strength in the mass market segment.

Property EBITDA in Macau reached US$334 million, with margins improving to around 28 percent during the period.

City of Dreams remained the main contributor, generating US$734.6 million in revenue. The property’s performance was supported by a mix of gaming and non-gaming activity, reflecting steady demand across different customer segments. Studio City also reported improved results, driven by higher levels of mass market play and overall property activity.

Altira Macau, which had previously struggled, returned to positive EBITDA in the quarter. This marks a notable improvement compared with last year and suggests a more stable operating position for the property.

Across the Macau portfolio, the trend is consistent: stronger activity levels and improved performance compared with the same period last year.

Global Portfolio Split: Resilient Manila, Volatile Cyprus, Emerging Sri Lanka

Outside Macau, performance varied depending on market conditions. City of Dreams Manila delivered EBITDA growth despite continued competition, showing that the property is holding its position in a more mature market.

In Cyprus, however, results were softer. Performance at City of Dreams Mediterranean and its satellite casinos was affected by lower tourism levels, linked to the conflicts in the Middle East, which reduced visitor arrivals during the quarter.

The Mocha segment also reported lower revenues. This follows earlier closures and changes in how the segment is structured, as part of Macau’s regulatory transition, including the shift to a managed model for Melco’s Mocha clubs. 

At the same time, Sri Lanka is beginning to appear in the numbers. The property, which opened in 2025, contributed additional revenue during the quarter and represents a new market for the company going forward.

Capital Allocation Reset: Buybacks and IP Ownership Signal Strategic Shift

Alongside operational performance, Melco made several capital-related moves during the quarter. The company approved a new US$500 million share repurchase program, adding to its existing buyback plan. Around US$210 million remains available under the earlier program.

In addition, Melco entered into an agreement to acquire intellectual property assets from Melco International for US$375 million. These include trademarks and related rights that are already used within the business.

These steps reflect ongoing activity around capital management and asset ownership. Separately, the company has also disclosed insider transactions, including when Melco Resorts’ president Evan Winkler sold US$3.8 million in company shares. 

Balance Sheet Reality: Strong Liquidity, but Debt and Interest Still in Focus

At the end of March 2026, Melco reported total liquidity of approximately US$2.36 billion, including US$1.07 billion in cash. Total debt stood at US$6.67 billion.

Interest expense for the quarter was around US$111.8 million, reflecting the cost of maintaining this level of debt. Capital expenditure came in at US$73.6 million, mainly directed toward ongoing enhancement work at City of Dreams in Macau.

The company continues to balance investment needs with its existing financial commitments.

Operator Takeaway: Margin Quality Overtakes Volume as Core KPI

From an operator perspective, the quarter shows how performance is being supported by steady activity across key properties. Results are being shaped by a mix of market conditions, operational execution, and portfolio structure.

There is also a continued focus on maintaining performance across both gaming and non-gaming areas, while managing costs and capital allocation alongside day-to-day operations.

Strategic Direction: Building a More Stable, Margin-Driven Growth Model

Overall, Melco’s Q1 2026 results reflect a business that is moving forward with a more balanced performance profile. Core markets are showing improvement, while international operations continue to contribute in different ways depending on local conditions.With ongoing activity across its properties and continued attention to capital management, the company remains positioned within the global gaming market as it moves through the rest of the year.

Source : Melco Resorts & Entertainment