Melco Resorts & Entertainment has announced an overall drop in revenue, income and EBITDA during the third quarter of 2026.
According to the report, the operator saw a more than 10% fall in total revenue compared to Q3 2025, to $1.1bn. Moreover, Melco's income and EBITDA decreased by 45% and 24%, respectively.
The company attributed the drop in total revenue to softer performance in rolling chip and mass market table games, as well as non-gaming operations.
However, this is not true for all Melco properties.
A nightmare quarter for City of Dreams
The operator's largest property, City of Dreams in Macau, reported a 15% drop in revenue. The resort's total revenue for Q3 2026 was $566.2m, compared to $672.6m in 2025.
EBITDA was also significantly lower, decreasing by 37%, to $130m, as rolling chip volume for the property went from $5.5bn to $4.6bn.
Nevertheless, mass market table games only fell by 1%, whereas gaming machine handle fell by 2%.
Its Sri Lankan counterpart, on the other hand, reported a positive EBITDA of $1.02m for Q3 2026, with hotel occupancy and average room rates contributing to the increase.
Studio City's unaudited results
The Hollywood-themed resort was not spared. According to the announcement, Studio City saw total revenue decrease by 7% to $346.2m.
Gross gaming revenue (GGR) also fell, to $320m.
Although the resort's mass market table games generated $846.3m, representing a 10% decrease, gaming machine handle increased by 2% to $892m.
Altira Macau stands out
Despite poor performance from the operator's flagship property, not all resorts saw a drop in revenue.
Indeed, Altira Macau reported a 22% increase in year-over-year total revenue, to $31.3m.
Furthermore, mass market table games and gaming machine handle soared, rising by 28% and 101%, respectively.
Melco property's revenue 2025/2026 ($m)
CEO comments
Lawrence Ho, Chairman and CEO of Melco Resorts & Entertainment, included a statement within the quarterly results. Chairman Ho wrote: "We continue to be confident in the long-term prospects of our businesses in Macau. We are focused on disciplined execution of our strategy to drive strong returns. Our distinctive product portfolio in Macau reflects the best in luxury and innovation.
"Coupled with the opening of our newly branded hotel REM and the renovation of our retail space at City of Dreams, we believe we are well positioned to capture the demands of our evolving customer base, supporting long-term growth."
Melco's overall performance matches Macau's 10% drop in GGR year-over-year. Despite the decline, the region's government said it would maintain its full-year 2026 forecast of MOP236bn ($29bn).
Macau has recorded five consecutive months of year-over-year GGR declines
