Melco Reports Stable Macau Performance in Q4 2025
Melco Resorts & Entertainment sees its Macau properties maintaining stability, with no major changes anticipated in the near term despite a competitive market. During Thursday’s earnings call, President Evan Andrew Winkler indicated the company does not plan to increase spending on gaming promotions to capture additional market share. He described the market environment as balanced, with no clear signals for spending to rise or fall sharply in the first quarter.
Stable Outlook, No Extra Spend Planned
Winkler acknowledged that competition remains intense but said Melco is comfortable with its current positioning. Based on trends from late Q4 into early 2026, there is no indication of a downturn or an immediate opportunity to boost performance significantly. Chairman Lawrence Ho added that margins appear appropriate for the anticipated level of competition throughout the year.
Melco’s decision to maintain its existing strategy reflects a measured approach in a market where operators often chase share through promotional spending.
City of Dreams Delivers Strong Results
City of Dreams posted solid Q4 results, with operating income rising to $150.88 million from $88.53 million in Q4 2024. Adjusted property EBITDA also increased to $193.71 million from $140.08 million. Total gross gaming revenue (GGR) grew 14% year-on-year to $764 million, led by a 10% rise in mass GGR to $539 million.
VIP GGR jumped 36% to $200 million, while slot GGR declined 22% to $25 million. VIP rolling chip volume increased slightly by 1% to $6.28 billion, with the win rate improving 83 basis points to 3.18%. Mass table drop rose 14% to $1.74 billion, despite a hold decrease of 107 basis points to 31%.
Melco plans gradual openings of its renovated Countdown Hotel and enhancements to retail and food-and-beverage offerings at City of Dreams. Winkler noted that although show-only visitors rarely head straight to gaming, the exposure introduces thousands to the property’s broader experiences.
Studio City Shows Moderate Gains
Studio City also posted improved results, with operating income rising to $29.56 million from $23.02 million. Adjusted property EBITDA increased to $86.59 million from $81.24 million, and total GGR grew 7% year-on-year to $343 million. The property’s GGR comes entirely from mass and slots, as it has no VIP operations. Mass GGR rose 10% to $314 million, while mass table drop declined 4% to $932 million and held improved 159 basis points to 33.7%. Slot GGR slipped 3% to $28 million.
Altira and Other Operations Face Challenges
Altira Macau recorded an operating loss of nearly $6.3 million in Q4 2025, compared to a $2.5 million loss in Q4 2024. Adjusted property EBITDA fell to negative $3.5 million from negative $251,000. Total GGR dropped 9% to $29 million, with mass GGR down 16% to $24 million despite a 22% rise in mass table drop to $153 million. Mass table hold plunged 714 basis points to 15.6%, while slot GGR rose 46% to $5 million.
Melco also closed its satellite Grand Dragon Casino in September 2025 and ceased operations at Mocha Grand Dragon and Mocha Hotel Royal in Q4. Tables were redistributed to Studio City, City of Dreams and Altira Macau, while three Mocha Clubs Inner Harbor, Golden Dragon, and Sintra Hotel remain operational. Mocha segment revenues fell to $20 million from $29.3 million, with adjusted EBITDA at $4.4 million versus $5.7 million. Gaming machine handle dropped to $471.4 million from $516.7 million, with a slightly higher win rate of 4.3% compared to 4.1%.
Cotai Core Properties Drive Performance
City of Dreams and Studio City carried Melco’s Cotai operations, with gains in operating income and EBITDA reflecting strong mass play and focused upgrades. Challenges at Altira and the closure of underperforming venues have freed resources for higher-return properties. The company maintains a stable outlook, confident in its mix, with no plans to increase promotional spending despite heightened competition.
