In the third quarter of 2025, Melco Resorts & Entertainment’s operating revenues improved by 11.4% year-on-year, reaching US$1.31 billion. This growth was primarily driven by strong performances in Macau’s casino market and substantial improvements in Cyprus, underscoring a steady recovery despite facing some operational hurdles.
Gaming revenues saw a notable increase of 12.4% compared to the previous year, totaling $1.06 billion. Non-gaming revenues also rose by 7.5% to $248 million. However, total revenues dipped slightly from the preceding quarter, partly due to a 33-hour casino closure in Macau caused by Typhoon Ragasa. Adjusted EBITDA showed a robust year-on-year increase of 16.3%, reaching $352 million, although this figure was later adjusted. Net income experienced a dramatic surge, climbing from a modest $13 million a year ago to an impressive $62 million.
The properties in Macau, particularly the flagship City of Dreams, were pivotal in driving this growth. Total gross gaming revenue at City of Dreams expanded by 19% year-on-year to $732 million, though it represented a 5% decline from the second quarter. Every gaming segment saw year-on-year growth, with VIP gross gaming revenue (GGR) experiencing the biggest jump, soaring 57% to $206 million. Mass market GGR increased by 9% to $494 million, while slots GGR was up 9% to $33 million. The property’s adjusted EBITDA rose by 27% year-on-year to $207 million, despite an 8% drop quarter-on-quarter.
Studio City, another prominent mass-market focused resort in Macau, exhibited a similar pattern. Macau as a whole reported a collective GGR of $344 million, marking a 3% increase from the previous year. This was largely driven by a 12% rise in mass-market play to $312 million and a 14% increase in slot machine revenue, totaling $32 million. However, overall growth was hampered by a limited number of VIP gaming tables. The property’s adjusted EBITDA climbed 13% year-on-year to $113 million.
In contrast, results were mixed in the Philippines, specifically at City of Dreams Manila. Total GGR declined by 9% year-on-year to $125 million, though it rebounded by 12% from the previous quarter. VIP play saw a 5% decrease this year, but there was a significant quarterly recovery, increasing by 59% to $23 million. Revenue from mass-market and slots also saw year-on-year declines of 8% and 12%, respectively.
Conversely, City of Dreams Mediterranean in Cyprus showcased strong performance momentum. Total GGR rose by 35% year-on-year and 14% sequentially to US$78 million. Interestingly, the property reported no VIP play this quarter, a stark contrast to previous quarters’ losses. Mass GGR saw a 43% spike year-on-year to US$41 million, while slots revenue increased by 26% to US$36 million. Adjusted EBITDA for the property jumped to US$23 million, indicating significant operational improvements and growing customer interest.
Melco’s other ventures, such as the management services at City of Dreams Sri Lanka, which commenced operations in August 2025, yielded $6.1 million in total operating revenues during the quarter. However, the venture reported a slight adjusted EBITDA loss of $600,000.
Lawrence Ho, Melco’s Chairman and CEO, noted the solid growth reported by Macau properties, with property EBITDA rising 21% year-over-year. He emphasized that stable margins showcase the robustness of Melco’s core business combined with strong operational discipline. Throughout the quarter, the company introduced new gaming areas and facilities aimed at offering unique experiences to its patrons. Melco plans to maintain this growth trajectory by continuing to innovate, enhancing customer engagement.
In the Philippines, property EBITDA increased by 45% quarter-over-quarter, whereas Cyprus marked its most successful quarter since opening, achieving a 53% year-on-year expansion in property EBITDA.
Overall, Melco’s third-quarter performance highlights the company’s resilience and ongoing recovery in its key markets. While Macau remains the principal growth driver, properties outside the region, especially in Cyprus, are gaining significant traction. Management emphasized enhancing the customer experience, efficient cost management, and investing in new gaming innovations as strategic focuses. Despite challenges such as adverse weather conditions and market competition, Melco remains committed to sustaining its recovery momentum and maximizing value across its diverse portfolio throughout the remainder of fiscal year 2025.
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