Melco Resorts & Entertainment Limited reported first‑quarter 2026 results that surpassed analyst expectations, with operating revenue rising 11% to US$1.37 billion and operating income climbing to US$179.0 million. Adjusted Property EBITDA reached US$381.0 million, a 12% year‑over‑year increase, while net income attributable to Melco rose to US$76.8 million, or US$0.20 per American Depositary Share (ADS).
Revenue growth was driven by stronger performance in mass‑market operations, particularly in Macau and the Philippines. Macau’s property EBITDA margin expanded to roughly 28%, reflecting improved operational leverage and cost discipline, while the Philippines contributed a 24% increase in property EBITDA and a 9% rise in gross gaming revenue. These segment gains offset modest headwinds in legacy markets and contributed to the overall 11% revenue increase.
Margin improvement in Macau was a key factor behind the earnings beat. The 28% property EBITDA margin, up from 26% in the prior year, was achieved through disciplined cost management and a favorable mix of high‑margin gaming and hospitality services. The company’s focus on operational efficiency and pricing power in its core markets underpinned the margin expansion.
Earnings per share of US$0.20 per ADS represented a beat of US$0.07 against the consensus estimate of US$0.13, driven by the combination of higher revenue, improved margins, and effective cost control. The EPS beat was further supported by a favorable mix shift toward higher‑margin segments and the elimination of one‑time charges that were present in prior periods.
Lawrence Ho, Chairman and CEO, said, "Melco Resorts' Adjusted Property EBITDA grew by approximately 12% year‑over‑year to US$381 million for the first quarter of 2026. In Macau, Property EBITDA grew by approximately 12% year‑over‑year to US$334 million and Property EBITDA margin improved to approximately 28%. Our efforts continue to center on increasing flow through and profitability while enhancing our competitive positioning with key growth initiatives."
Management also highlighted a strategic trademark acquisition, paying US$375 million to secure full control of key intellectual property, which is expected to boost EBITDA and cash flow without additional capital outlay. The company reaffirmed its commitment to returning capital, with a board‑approved incremental $500 million buyback program and plans to resume dividends by year‑end 2026.
Investors reacted positively to the results, citing the revenue beat, margin expansion, and strong performance in Macau and the Philippines as key drivers. The company’s guidance for the remainder of the year remains supportive, with continued focus on operational efficiency and strategic investments such as the phased opening of the REM luxury hotel at City of Dreams Macau.
Headwinds include a decline in Cyprus operations due to the Middle East conflict, which has impacted tourism. However, the company’s diversified portfolio and strategic initiatives, such as the REM launch and trademark acquisition, provide tailwinds that reinforce its long‑term growth trajectory.
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