Melco Resorts Reports 6% Revenue Dip Despite Operating Income Growth in Q2

Global gaming markets are showing a split reality in the summer of 2026. While some operators in Asia struggle with saturation and changing player habits, other locations are reporting record figures. Amidst this dynamic, Melco Resorts & Entertainment has presented its latest financial results, painting a complex picture between declining revenues and increasing efficiency. The company is currently navigating a phase of realignment, where non-gaming offerings are playing an increasingly important role.

The six percent decline in total revenue compared to the previous year's period illustrates that recovery in core markets is not a given. Particularly striking is the weakness in classic table games, which traditionally form the backbone of the operating business. However, despite the lower revenue, management remains optimistic as profitability at the operational level was improved. This suggests strict cost discipline and an optimization of internal processes to cushion lower gross gaming revenues.

Numbers and facts

The specific business figures for the quarter ending June 30 support this development. Operating revenues fell to $1.25 billion. In the previous year, revenues were significantly higher. Operating income, however, climbed from $124.7 million to $127.8 million. Net income attributable to the company reached $22.7 million or $0.06 per American depository share. In the same period of the previous year, it was only $17.2 million or $0.04 per share.

Interestingly, the company recorded losses in non-controlling interests of $12.1 million, primarily due to the Studio City and City of Dreams Mediterranean projects. The latter, however, is showing an impressive recovery phase. Property EBITDA in Cyprus grew by a staggering 60 percent year-on-year in the second quarter of 2026 after regional travel disruptions eased.

Background

Melco's focus remains heavily on Macau, even though there are currently headwinds. Lawrence Ho, Chairman and CEO of the company, sees the current situation as a short-term challenge. The company is betting on a long-term strategy characterized by investments in infrastructure and customer experience. A central component is the opening of the new hotel named REM, which is scheduled to open its doors gradually in the third quarter of 2026.

"We are confident in the long-term strength of our businesses and our outlook for Macau. Despite near-term headwinds that are reflected in our second quarter results, our priorities continue to be to deepen customer engagement, attract high quality visitation and continue investing in our properties to anticipate the changing needs of our guests." - Lawrence Ho, Chairman and CEO of Melco Resorts & Entertainment

In comparison, competitors such as the Galaxy Entertainment Group (GEG) face similar challenges but have partially recorded gains. While Galaxy Macau shone as a flagship with hotel occupancy of 98 percent, smaller locations like StarWorld Macau struggled with revenue declines of eleven percent. This shows that consolidation is taking place within the industry, where integrated resorts with a wide range of entertainment perform better than pure gambling temples.

Why it matters for German players

For players in Germany, these global shifts among heavyweights like Melco or Galaxy do not have a direct impact on the next spin of a slot, but they illustrate the trend toward strict regulation and transparency. While Melco handles massive VIP volumes overseas, the German market is clearly defined by the State Treaty on Gambling 2021 (GlüStV 2021). In this country, it's not about the glamour of Macau but about player protection and safety.

German customers must adhere to the monthly deposit limit of 1,000 euros across all providers, which is monitored by the LUGAS system. In addition, there is a stake limit of 1 euro per round on virtual slot machines. These rules ensure that gambling remains within a controlled framework. Anyone playing at a provider licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) enjoys the protection of German laws, which is not the case with international giants without a local license.

What it means for GGL-licensed casinos

Providers on the official GGL whitelist can learn from Melco's reports that diversification is the key to success. Melco is investing heavily in hotels and gastronomy to avoid being solely dependent on rolling chip volume. German casinos must also position themselves as entertainment platforms that offer attractive bonuses and high user-friendliness within the legal framework.

The example of City of Dreams Mediterranean in Cyprus shows how quickly markets can recover when the general conditions are right. For GGL casinos, this means using regulatory requirements as a quality feature. A fair gaming environment, fast payouts, and avoiding aggressive advertising are more sustainable in the long term than looking at high margins in the unregulated market.