Global casino operator Melco Resorts & Entertainment Ltd reported first-quarter net income of US$32.5 million, compared with US$15.2 million in the prior-year period, the U.S.-listed firm said in a Thursday press release.
The group – which runs casinos in Macau and the Republic of Cyprus, plus one in the Philippines, and will soon launch a venue in Sri Lanka – said it generated total operating revenues of US$1.23 billion in the three months to March 31, up 10.8 percent year-on-year.
The increase in revenues “was primarily attributable to the improved performance in all gaming operations and overall non-gaming operations,” stated the casino firm.
Operating income for the first quarter of 2025 was US$144.9 million, compared with US$125.4 million a year ago.
The group’s first-quarter adjusted property earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at just under US$341.0 million, a 14.1-percent increase from a year earlier.
Lawrence Ho Yau Lung, Melco Resorts’ chairman and chief executive, said in prepared remarks that the group’s property EBITDA in the Macau market “grew 32 percent quarter-over-quarter, demonstrating our strength and growth potential in Macau”.
“Mass drop increased each month during the quarter, and we recorded our highest daily mass drop ever,” stated the CEO.
He added: “The ongoing strength that we are seeing in our business momentum is a direct result of the combined efforts of our teams, and the quality of our product offerings, and we will continue to build on this momentum.”
Melco Resors said its market share grew from 14.7 percent in fourth-quarter 2024 to 15.7 percent in the opening three months of 2025, and “remained stable” at that level in April.
CBRE Equity Research said in a Tuesday memo that it was a “strong quarter” for Melco Resorts, beating market consensus of US$273.0 million in EBITDA.
“With recent share gains holding steady, increased opex [operating spending] discipline, normalising promotional activity, and strong market wide visitation trends during the May holiday period, we see upside to our forecast for Melco Resorts in Macau,” stated the institution.
It added: “We estimate Melco Resorts’ promotional reinvestment levels as a percentage of revenue stepped down by about 230 basis points year-on-year and 170 basis points sequentially.”
CBRE said it was raising its 2025 Macau adjusted property EBITDA estimate for Melco Resorts to US$1.07 billion, from a previous forecast of US$942 million.
Operating environment
On Thursday, Mr Ho said the group’s City of Dreams Manila operation in the Philippine capital “was impacted by the increased competition in the market,” while results at City of Dreams Mediterranean and the brand’s satellite casinos in Cyprus “exhibited solid sequential and year-on-year growth despite the continued challenges posed by the conflicts in the region”.
The executive added: “The fit-out of the casino at City of Dreams Sri Lanka is progressing well and we continue to expect to commence casino operations in the third quarter of 2025.”
Melco Resorts is an investor in the casino portion of the US$1-billion Sri Lanka resort complex, which was created by John Keells Holdings Plc. Melco Resorts had previously mentioned it would spend US$125 million as its contribution toward the casino resort.
For the quarter ending on March 31, total operating revenues at City of Dreams in Macau were US$658.1 million, compared with US$550.9 million a year ago.
The complex’s adjusted EBITDA was US$195.9 million in the first quarter of 2025, up from US$153.6 million in the prior-year period. “The year-over-year increase in adjusted EBITDA was primarily a result of better performance in all gaming operations,” noted Melco Resorts.
Rolling chip volume at City of Dreams increased to US$6.05 billion during the first quarter of 2025, with a win rate of 3.74 percent, compared with US$5.69 billion a year earlier.
Mass market table games drop increased to US$1.59 billion in the first three months of 2025, compared with US$1.48 billion a year ago.
Prior to the latest quarterly results, Melco Resorts relaunched on Wednesday (May 7) its long-standing resident show The House of Dancing Water, at City of Dreams.
In the first quarter this year, City of Dreams Manila operating revenues were US$101.6 million, compared with US$110.7 million a year earlier.
The property generated adjusted EBITDA of US$30.1 million in the three months to March 31, versus US$37.8 million in the comparable period of 2024.
“The year-over-year decrease in adjusted EBITDA was primarily a result of softer mass market performance,” stated the company.
City of Dreams Manila’s rolling chip volume was US$351.9 million in the first quarter of 2025, versus US$527.7 million in the prior-year quarter. Mass market table games drop decreased to US$145.5 million, compared with US$180.6 million in the first quarter of 2024.
In late February, Melco Resorts said it was looking at “strategic alternatives” regarding the future of its involvement in the City of Dreams Manila complex, which it manages in a deal with local partners.
Mr Ho said at the time that Melco Resorts was adopting a new strategy, namely “to be asset light where we can, capitalise on our investments, and reallocate our resources”.
