Melco Resorts & Entertainment has pushed the expected return of shareholder dividends into 2027 as weaker Macau trading and elevated debt keep capital allocation focused on balance-sheet improvement and share buybacks.
The casino group reported second-quarter operating revenue of US$1.25bn, down approximately 6% from $1.33bn a year earlier.
Adjusted property EBITDA fell to $303.8m from $377.7m, although net income attributable to Melco increased to $22.7m from $17.2m.
City of Dreams Macau recorded the largest decline, with revenue falling to $632.2m from $710.5m and adjusted property EBITDA dropping to $147.8m from $225.6m.
Management said the FIFA World Cup had a greater impact on gambling activity than previous tournaments, with some customers shifting spending away from casino play during June and July.
Group president Evan Winkler said lower volumes and reduced levels of play were evident among some customers, although activity had begun returning to more normal levels by late July and early August.
Melco has also delayed the potential reinstatement of dividends, having previously indicated that payments could resume towards the end of 2026.
Geoff Davis, CFO, said: “We think in 2027, we will be in position to recommence the dividend.”
The company said it wants any restored dividend to be meaningful while continuing to balance debt reduction, liquidity and investment requirements.
Melco ended June with $1.04bn in cash and total debt of $7.05bn, although available liquidity stood at approximately $2.8bn.
The group has continued returning capital through share repurchases.
Between April 1 and August 12, Melco bought back approximately 22.4m American depositary shares for $120.6m. Around $589.6m remains available under its existing repurchase authorisation.
Chairman and chief executive officer Lawrence Ho said debt repayment and improving operating performance remained priorities when asked about potential mergers, acquisitions or taking the company private.
Melco is meanwhile preparing the formal opening of REM, its refurbished 149-room luxury hotel tower at City of Dreams Macau.
The property has already soft opened, with its grand opening scheduled for after China’s October Golden Week holiday period.
Ho said initial customer response had been strong, although ongoing refurbishment of retail areas at City of Dreams is expected to cause some disruption over the coming months.
The delayed dividend timetable reflects Melco’s continued focus on strengthening its balance sheet while investing in its Macau properties and waiting for gaming activity to recover from the weaker World Cup period.
