Q2 2026 Melco Resorts & Entertainment Ltd Earnings Call Transcript
Key Points
- Melco Resorts and Entertainment Ltd (MLCO) opened REM, a unique luxury product at City of Dreams, which is expected to differentiate the property and enhance its competitive position in Macau.
- The company's diversified portfolio showed resilience, with City of Dreams Manila delivering a 9% year-over-year growth in property EBITDA and Cyprus operations rising 60% year-over-year in Q2 2026.
- Sri Lanka casino operations achieved positive EBITDA of $3.5 million in Q2 2026, indicating successful ramp-up and operational progress.
- Melco Resorts and Entertainment Ltd (MLCO) maintains a robust liquidity position with approximately $2.8 billion available, including an upsized and extended revolving credit facility to June 2031.
- The company is actively managing its capital structure, having repurchased approximately $134 million of ADSs in 2026 and refinanced Studio City debt to reduce interest expenses.
- Management is focused on disciplined cost management, keeping daily OpEx in Macau steady at $3.4 million per day, and is evaluating further efficiencies to align costs with demand.
- Melco Resorts and Entertainment Ltd (MLCO) experienced a negative impact on property EBITDA of approximately $9 million due to an unfavorable VIP win rate at City of Dreams Macau in Q2 2026.
- Lower-than-expected visitation and lower hold placed pressure on margins in Q2 2026, reflecting near-term headwinds in Macau.
- The World Cup had a more significant impact on gaming activity than in prior years, reducing volumes and player activity during June and July 2026.
- The retail revamp at City of Dreams will cause significant construction disruption, potentially impacting guest experience and visitation through mid-2027.
- The company has deferred the recommencement of dividends to 2027, prioritizing share repurchases and debt repayment over shareholder income in the near term.
- Competition remains elevated in Macau, leading to a demanding cost environment and requiring ongoing efforts to maintain market share.
Ladies and gentlemen, thank you for participating in the second quarter 2026 earnings conference call of Melco Resorts & Entertainment Limited. (Operator Instructions) Today's conference is being recorded.
I would now like to turn the call over to Ms. Jeanny Kim, Senior Vice President, Group Treasurer of Melco Resorts & Entertainment Limited.
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Thank you, operator. Thank you, everybody, for joining us today for our second quarter 2026 earnings call. On the call are Lawrence Ho; Geoff Davis; Evan Winkler; and our Property Presidents in Macau, Manila and Cypress.
Before we get started, please note that today's discussion may contain forward-looking statements made under the safe harbor provisions of federal securities laws. Our actual results could differ from our anticipated results.
In addition, we may discuss non-GAAP measures. Definitions and reconciliations of each of these measures to the most comparable
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