Melco's Cyprus Properties Post Record Quarter as Macau Lags

Melco Resorts' flagship in Macau performed weakly in the three months ended September 30, 2026. The company's European business moved in the opposite direction. City of Dreams Mediterranean in Limassol is described as Europe's largest integrated resort. This property and the satellite casinos in Cyprus reached the company's highest quarterly EBITDA figure.

Group revenue fell 10% to $1.17 billion. Adjusted property EBITDA dropped to $287.6 million, from $380.4 million a year earlier. Adjusted net profit came in at about $6.5 million, compared with $83.7 million a year ago.

Bad VIP luck caused City of Dreams Macau to lose about $14 million. Rolling chip volume fell to $4.63 billion, and the VIP win rate was 2.49%.

Gross gaming revenue across Macau fell 10% in October to MOP 21.68 billion. The ten-month total rose 1.6% to MOP 208.80 billion. The government's forecast for gross gaming revenue in 2026 is MOP 236 billion.

In Cyprus, mass market revenue rose 21% to $50 million. Slot revenue increased 5% to $38 million. Despite this growth, VIP revenue in the region remained negative throughout the quarter.

On July 18, the company repaid its $165 million bond carrying a 6.500% coupon and maturing in 2028. On September 23, it fully redeemed its $600 million bond carrying a 5.625% coupon and maturing in 2027 ahead of schedule. Total debt stood at $6.98 billion at the end of September. We are above the debt level of $6.75 billion at the start of the year.

Between July 1 and November 3, the company also bought back about 33.1 million ADSs for roughly $160 million. Management said it would prefer a limited player club model rather than heavy investment in Macau, and that dividends could resume toward the end of 2027.