Melco Resorts & Entertainment reported higher fourth-quarter revenue and profitability for 2025, driven by stronger gaming volumes in Macau and improved performance at its core City of Dreams and Studio City properties.
The operator posted Q4 operating revenue of $1.29bn, up 9.0% from $1.19bn a year earlier and operating income of $146.4m, up 50.9% from $97.0m.
Adjusted Property EBITDA rose 12.2% to $331.3m. Net income attributable to Melco was $60.6m, reversing a $20.3m loss in Q4 2024.
Macau drives growth as City of Dreams EBITDA rises 38%
City of Dreams remained the primary earnings engine. Q4 operating revenue increased 17.7% to $695.7m, while adjusted EBITDA rose 38.2% to $193.7m.
Rolling chip volume was broadly flat year over year at $6.28bn, while the rolling chip win rate increased to 3.18% from 2.35%, slightly above the stated expected range of 2.85% to 3.15%.
Mass-market table drop rose 13.7% to $1.74bn, with hold easing to 31.0% from 32.0%. Gaming machine handle increased 5.8% to $1.09bn, while win rate declined to 2.3% from 3.1%. Non-gaming revenue rose 15.4% to $98.8m.
Studio City posts modest top-line gains, aided by mass-market focus
At Studio City, Melco reported Q4 operating revenue of $360.4m, up 5.4% and adjusted EBITDA of $86.6m, up 6.7%.
Mass-market table drop increased 4.5% to $931.7m, while hold rose to 33.7% from 32.1%. Gaming machine handle grew 5.3% to $935.8m, with win rate edging down to 3.0% from 3.3%.
Non-gaming revenue was essentially flat at $74.0m. The company reiterated that Studio City shifted toward premium mass and mass operations, with VIP rolling chip operations transferred to City of Dreams in late October 2024.
Studio City International, which separately reports as a listed entity, posted Q4 operating revenue of $160.3m, up 4.8% from $152.9m and adjusted EBITDA of $60.2m, up 6.2%.
Revenue from casino contract increased 8.5% to $69.0m, while operating income rose to $7.8m from $3.1m. Net loss narrowed to $20.5m from $27.7m.
Manila weakens, while Cyprus improves and asset closures reshape Mocha footprint
City of Dreams Manila reported Q4 operating revenue of $100.2m, down 25.1% and adjusted EBITDA of $33.1m, down 41.7%, with declines across gaming and non-gaming lines.
By contrast, City of Dreams Mediterranean and other Cyprus operations posted Q4 operating revenue of $83.5m, up 41.0% and adjusted EBITDA of $21.0m, up 78.0%.
Melco also reported that Mocha Grand Dragon Hotel and Mocha Hotel Royal ceased operations during Q4, with 345 gaming machines reallocated across City of Dreams, Studio City and Altira. Mocha segment revenue fell 31.7% to $20.0m, while adjusted EBITDA declined 22.8% to $4.4m.
Balance sheet and capital allocation
As of December 31, 2025, Melco reported $1.15bn in cash and bank balances, total debt of $6.75bn and available liquidity of approximately $2.38bn.
Capital expenditures were $82.3m in Q4, largely tied to enhancement projects in Macau. The company also disclosed debt repayments during and after the quarter, including repayment plans extending into February 2026.
For the full year, Melco reported operating revenue of $5.16bn, up from $4.64bn, operating income of $600.4m versus $484.6m and adjusted property EBITDA of $1.43bn versus $1.22bn. Net income attributable to Melco rose to $185.0m from $43.5m.
In Q3 2025, Melco reported operating revenue increased 11.4% to $1.31bn, with adjusted property EBITDA up 17.9% to $380.4m, while the group also closed Grand Dragon Casino and Mocha Kuong Fat in late September as part of its Macau development strategy and compliance with local rules.
Macau’s Government has continued pushing concessionaires to diversify earnings beyond gaming, shaping capital allocation and investment priorities across integrated resort operators
