In Macau, Melco Resorts & Entertainment is maintaining its operational stability without significant shifts in market strategy, according to statements made during an earnings call on Thursday. President Evan Andrew Winkler highlighted that the company is not planning to increase its expenditure on gaming promotions, despite intense competition in the region. This decision is crucial as it reflects Melco’s confidence in its current market position within a highly competitive landscape where operators often vie for increased market share through aggressive marketing.
During the call, Winkler stated that the current market environment has remained balanced, with no drastic changes in spending trends observed as the first quarter unfolds. This stability suggests that Melco is strategically choosing not to engage in a competitive spending race, which could potentially impact profitability. Chairman Lawrence Ho added that current profit margins are deemed appropriate given the competitive dynamics expected to persist throughout 2026. This cautious approach highlights Melco’s deliberate strategy in a market where operators must carefully balance promotional expenditures and market share aspirations.
City of Dreams, Melco’s flagship property, reported positive fourth-quarter performance with operating income rising to $150.88 million, compared to $88.53 million in the same period the previous year. The property also saw an increase in its adjusted property EBITDA, which rose to $193.71 million from $140.08 million. Total gross gaming revenue (GGR) for City of Dreams grew by 14 percent year-on-year to $764 million, driven by a 10 percent rise in mass market GGR to $539 million. The VIP segment experienced a notable 36 percent increase to $200 million, although slot GGR decreased by 22 percent to $25 million.
The modest growth in VIP rolling chip volume by just 1 percent to $6.28 billion was offset by an improved win rate of 3.18 percent, up 83 basis points. Additionally, mass table drop increased by 14 percent to $1.74 billion, despite a decrease in hold percentage by 107 basis points to 31 percent. This performance underscores Melco’s effective strategy in capitalizing on mass market growth while managing VIP business risks.
Looking ahead, Melco plans to gradually open its renovated Countdown Hotel throughout the year. Enhancements to the retail space and food and beverage options at City of Dreams are also underway. Winkler noted that while a limited number of visitors come solely for entertainment shows, these events serve as an entry point to the property’s broader offerings, potentially attracting new patrons to gaming activities.
Studio City, another key property on the Cotai Strip, also reported improved financial results. Operating income increased to $29.56 million from $23.02 million in the previous year, with adjusted property EBITDA rising to $86.59 million from $81.24 million. The property’s GGR rose by 7 percent year-over-year to $343 million, with growth attributed solely to the mass market and slot segments, as Studio City does not operate a VIP gaming section. Mass GGR increased by 10 percent to $314 million, while slot GGR declined by 3 percent to $28 million.
Conversely, Altira Macau faced challenges, reporting an operating loss of approximately $6.3 million in the fourth quarter, widening from a $2.5 million loss the previous year. The adjusted property EBITDA also turned negative at $3.5 million. Total GGR decreased by 9 percent to $29 million, impacted by a 16 percent decline in mass GGR to $24 million, despite a 22 percent rise in mass table drop to $153 million. The mass table hold fell significantly, while slot GGR increased by 46 percent to $5 million.
The closure of Grand Dragon Casino in September 2025 and the cessation of operations at Mocha Grand Dragon and Mocha Hotel Royal further impacted Melco’s operational landscape. As part of a strategic adjustment, tables were relocated to Studio City, with 108 tables moved to Studio City, enhancing its competitive edge. The company now operates three Mocha Clubs: Inner Harbor, Golden Dragon, and Sintra Hotel, with Mocha operating revenues decreasing to $20 million from $29.3 million.
Melco’s focus on its Cotai properties, City of Dreams and Studio City, is evident as they continue to deliver solid performance metrics. This strategic emphasis, coupled with the closure of underperforming operations, demonstrates a recalibrated approach to optimize returns. The decision not to increase promotional spending reflects a calculated confidence in maintaining market position amidst ongoing competition.
Moving forward, Melco’s strategy will likely focus on leveraging its strong performance in the mass market segment while continuing to optimize its property portfolio across Macau. The gradual opening of renovated facilities and ongoing property enhancements are expected to further position Melco for steady growth and sustained market presence in the region. As the competitive landscape in Macau remains intense, Melco’s strategic decisions will be closely monitored by industry analysts and stakeholders, with particular attention to potential impacts on market share and profitability.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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