Moody's Sees Melco Resorts' Revenue Ascending in 2026

Moody's Ratings, a globally recognized credit rating agency, has released its forecast for Melco Resorts & Entertainment Ltd, predicting a year-over-year revenue increase of 4.5% in 2026, culminating in US$5.4 billion. The growth trajectory is expected to continue with another 4% rise in 2027, reaching US$5.6 billion.

This optimistic outlook is heavily attributed to an expanding gaming market within Macau and Melco's anticipated maintenance of a stable market share. These projections were articulated in a recent memo from Moody's concerning Melco Resorts Finance Ltd, a subsidiary under the Melco Resorts umbrella.

Macau's Role in Melco's Projected Growth

The cornerstone of this forecast is rooted in a broader confidence in Macau’s gaming industry. Moody's estimates that the area’s gross gaming revenue (GGR) will surge by 6% in 2026, succeeded by a 4%-5% growth in 2027. This expansion is largely driven by the influx of visitors from mainland China, enhancing the business environment for gaming operators like Melco. A significant contributing factor to Melco's sustained market position, encompassing roughly 15% of the Macau gaming market, includes its extensive entertainment offerings.

The company is expected to continue attracting visitors through large-scale events such as residency shows, concerts, and major sporting events. Furthermore, the introduction of new hotel amenities, most notably the REM Hotel at the City of Dreams in Macau, will further bolster growth. This property’s gradual opening is anticipated to catalyze increased visitation and expenditure.

Financial Projections and Strategic Initiatives

Moody’s forecasts that Melco Resorts’ adjusted EBITDA is set to reach approximately US$1.3 billion in 2026, a rise from US$1.25 billion in the preceding year, with a further increase to US$1.4 billion projected for 2027. The group’s adjusted EBITDA margin is projected to enhance slightly, stabilizing around 24% to 25%.

This improvement is expected to be supported by strategic operational efficiency initiatives. Nevertheless, the company recorded an adjusted EBITDA of US$612 million in the first half of 2026, marking a 2.5% decline from the previous year’s period. Factors contributing to this downturn included weakened performance in certain sectors like rolling chip and mass-market tables, a downturn in non-gaming sectors, and escalated marketing expenses during the second quarter.

In line with financial health, Moody's noted Melco’s efforts in debt reduction, anticipating that the adjusted debt-to-EBITDA ratio will drop from 5.9 times (as of June 30) to an estimated 5.5 times in 2026, and further down to 5.0 times in 2027. Such financial discipline should aid in maintaining the company’s 'Ba3' corporate family rating.

Additionally, the ratings agency foresees a reduction in Melco’s adjusted debt from US$7.3 billion at mid-2026 to US$6.9 billion by the end of 2027. Future financial strategies include the resumption of dividend payments and the execution of a US$590 million share repurchase plan from 2026 to 2028.

Source: Moody’s Sees Melco Resorts Revenue Rising 4.5Pct In 2026, EBITDA at US$1.3Bln, GGRAsia, August 27, 2026.

Posted by Wizard
Aug 27 2026