At the center of Melco’s revival is its flagship property, City of Dreams Macau, which alone generated $137.5 million in operating income this quarter.
CEO Lawrence Ho highlighted the momentum in Macau, stating that property EBITDA in the region had grown 32% quarter-on-quarter. “We recorded our highest daily mass drop ever,” Ho noted, emphasizing sustained growth across the mass gaming market.
Despite this, Altira Macau underperformed with a $2.4 million operating loss, attributed to a 22.7% drop in table drop volume compared to the same period last year.
Philippines Market Faces Rising Competition
In contrast to Macau’s momentum, the Philippines posed challenges. Melco acknowledged the impact of increased competition on City of Dreams Manila, although the property still delivered a respectable $13.5 million in operating income and $30.1 million in Adjusted EBITDA.
During the earnings call, Ho reflected on the competitive pressures, noting, “In the Philippines, the heightened competitive environment has had an impact on performance.”
City of Dreams Manila: Bidding Process Moves Ahead
Speculation around the potential sale of City of Dreams Manila gained traction during the call. Geoff Davis, CFO, revealed that prospective buyers are actively engaged in the evaluation phase.
“They’re signing NDAs in the virtual data room,” Davis confirmed, indicating that Melco is close to narrowing down a shortlist of bidders as part of what appears to be a strategic divestiture.
This move follows the company’s broader shift in focus, especially in response to stricter junket regulations and capital deployment considerations.
Cyprus Operations Show Steady Gains Despite Regional Tensions
Melco’s ventures in Cyprus — including City of Dreams Mediterranean and its network of satellite casinos — posted consistent growth both sequentially and year-over-year. This came despite external geopolitical challenges stemming from ongoing conflicts in the region.
Ho praised the resilience of these properties, citing them as examples of the group’s geographic diversification bearing fruit.
Sri Lanka Prepares for Debut in Q3 2025
Another bright spot in Melco’s expansion strategy is its upcoming project in Sri Lanka. The final stages of construction and interior fit-out at City of Dreams Sri Lanka are progressing on schedule.
Ho reaffirmed that casino operations are expected to launch in Q3 2025, adding yet another market to the company’s growing footprint in Asia.
Leadership Commentary: ‘We’ve Found Our Groove Again’
CEO Lawrence Ho struck an optimistic tone during the investor call, describing Q1 2025 as a period of renewed identity and performance.
“We’ve found our groove again and rediscovered our identity,” Ho said. “As long as everyone keeps behaving in the wider market, we don’t need aggressive tactics. Our products speak for themselves.”
The focus, according to Ho, remains on maintaining high standards and refining guest experiences rather than engaging in price wars or promotional overdrive.
Looking Ahead: Growth Rooted in Discipline and Quality
Melco’s Q1 report presents a company in resurgence — driven by strong Macau momentum, resilient non-gaming segments, and a recalibrated strategy in markets like the Philippines.
While competition and global uncertainties remain, Melco’s measured and disciplined approach, combined with strategic divestitures and expansion, suggest it is charting a sustainable course forward.
In Summary:
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Revenue up 10.8% to $1.23B
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Casino segment dominates with $1.02B
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Net income leaps 50x to $27.7M
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City of Dreams Macau leads, Altira lags
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City of Dreams Manila sale under process
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Sri Lanka launch confirmed for Q3 2025
About the author
Melco Resorts Rebounds in Q1 2025 with Strong Revenue Growth and Renewed Momentum
At the center of Melco’s revival is its flagship property, City of Dreams Macau, which alone generated $137.5 million in operating income this quarter. CEO Lawrence Ho highlighted the momentum in Macau, stating that property EBITDA in the region had grown 32% quarter-on-quarter. “We recorded our highest daily mass drop ever,” Ho noted, emphasizing sustained growth across the mass gaming market. Despite this, Altira Macau underperformed with a $2.4 million operating loss, attributed to a 22.7% drop in table drop volume compared to the same period last year. Philippines Market Faces Rising Competition In contrast to Macau’s momentum, the Philippines posed challenges. Melco acknowledged the impact of increased competition on City of Dreams Manila, although the property still delivered a respectable $13.5 million in operating income and $30.1 million in Adjusted EBITDA. During the earnings call, Ho reflected on the […]
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