During its first-quarter earnings call, the company reported ongoing growth in Macau and continued expansion efforts in Cyprus.
Speaking to analysts on Thursday, Melco Resorts & Entertainment CEO Lawrence Ho highlighted the company’s strong first-quarter performance, calling it a reflection of both its strengths and future growth potential.
The Hong Kong-listed firm operates integrated resorts in Macau, Manila, and Cyprus, and is set to launch its new casino in Sri Lanka later this year.
‘Firing on all cylinders in Macau’
Melco Resorts CEO Lawrence Ho reported steady growth in Macau, with market share rising from 14.7% in Q4 2024 to 15.7% in Q1 2025—and holding steady through April. Property EBITDA jumped 32% quarter-over-quarter.
Mass drop volumes climbed consistently throughout the quarter, hitting record highs at both City of Dreams and Studio City. That momentum extended into April and China’s Golden Week holiday (May 1–5).
Despite new competition—most notably the April launch of the Londoner Grand, which also targets premium mass players—Melco saw a 30% year-on-year increase in visitor traffic at its Macau properties.
“We haven’t seen any cannibalisation or major impact from the Londoner,” said Ho. “We’ve regained our rhythm and rediscovered our identity.”
He also highlighted the return of The House of Dancing Water at City of Dreams Macau as a major success, estimating it will boost daily footfall by around 4,000 visitors. Additional traffic-driving initiatives include a redesigned retail space and updated main entrances at both City of Dreams and Studio City.
Ho added that now-completed renovations at Studio City led to a rebound in EBITDA, showing the effectiveness of the upgrades. “Melco is firing on all cylinders in Macau,” he said.
Manila for sale, Mediterranean improves
City of Dreams Manila faced growing competition in its market, according to Melco CEO Lawrence Ho. “We’re adjusting our cost structure and reviewing marketing strategies to improve EBITDA performance,” he said.
Melco is also actively working to divest its integrated resort in the Philippines’ Entertainment City. A sale would allow the company to reallocate capital—potentially to pursue a license in Thailand, should the country legalize integrated resorts with gaming.
“We have potential buyers signing NDAs,” Ho told analysts. “Over time, we’ll narrow the field to a shortlist for the bidding stage. We’ll provide updates when there’s something concrete.”
Meanwhile, City of Dreams Mediterranean in Cyprus posted a 10% year-over-year increase in property EBITDA in Q1.
Despite ongoing geopolitical tensions in the region—referring to the conflicts in Ukraine and between Israel and Hamas—Ho noted that the resort is gaining traction ahead of the summer season. “Bookings are significantly higher than they were at this time last year. We’re optimistic about what Cyprus can deliver through the rest of 2025.”
Preparations also remain on track for the opening of Melco’s City of Dreams Sri Lanka, with doors expected to open in the third quarter.
Looking ahead: more ‘rational’ reinvestment
Melco CEO Lawrence Ho noted that Macau’s casino operators are taking a more measured approach to market reinvestment in 2025.
“After Covid, we were cautious at first. Then last year, we may have gone too far in terms of reinvestment,” he said. “We offer a premium experience, so we shouldn’t be the most aggressive in our marketing strategies. At City of Dreams and Studio City’s Epic Tower, we have arguably the two best hotels in Macau—Epic is also a fantastic new product.”
Ho emphasized that these high-end offerings, combined with Studio City’s family-oriented indoor water park, are enough to appeal to a wide range of guests. “The non-gaming attractions we built years ago will continue to benefit us. Now is the time to stay disciplined and focus on boosting our margins.”
He also pointed to recent Chinese government stimulus efforts as a positive sign for the industry.
“Chinese policy matters more to us than the overall economy,” Ho said. “Beijing has been highly supportive and is now prioritizing domestic consumption, discretionary spending, and local travel—all of which are essential for our business.”
