Melco Resorts & Entertainment (MLCON) Q2 2026 Earnings Report

The call balanced positive operational and financial strengths—notably strong liquidity ($2.8B available), meaningful regional EBITDA growth (Manila +9% YoY, Cyprus +60% YoY), property enhancements (REM soft open, new gaming areas) and disciplined capital actions ( ~$134M share buybacks and RCF upsize)—against pronounced near-term challenges, including a significant VIP win-rate decline (3.9% to 2.7%, ~$9M EBITDA headwind), lower visitation/hold pressure, World Cup-related substitution to sports betting, and construction disruption at City of Dreams. Management emphasized cost discipline and flexibility, a roadmap for ramping new assets, and intent to recommence dividends in 2027. Overall, the positives across liquidity, regional growth and strategic investments outweigh the near-term operational headwinds.

Management provided detailed near-term operating and balance-sheet guidance: group Q2 adjusted property EBITDA was ~$304M (~$312M adjusted for VIP hold) with an adverse COD VIP win‑rate decline from 3.9% in Q2‑2025 to 2.7% in Q2‑2026 that lowered EBITDA by ~ $9M; Macau total daily OpEx remains about $3.3–3.4M/day (inclusive of House of Dancing Water). For Q3‑2026 they expect depreciation & amortization of $140–145M, corporate expense of $20–25M and consolidated net interest expense of $115–120M (including ~ $6M finance‑liability interest and ~ $5M finance‑lease interest). Liquidity and capital items: available liquidity of ~ $2.8B, consolidated cash on hand of ~ $1.0B (≈ $492M excluding Studio City/Philippines/Cyprus/Sri Lanka), an upsized RCF increased by ~ $821M to $2.8B with maturity extended to June 2031, Studio City bond/redemption activity leaving $335M of 2028 notes outstanding, YTD ADS repurchases of ~25M shares for ~$134M (22.4M for ~$121M Apr 1–Aug 12), and management expects to recommence dividends in 2027; CapEx is ~$225M for the remainder of 2026 and ~$275–300M for 2027.