MLCO Surges 3.18% to 2025 High on EBITDA Growth Sri Lanka Expansion

The share price of Melco Resorts & Entertainment (MLCO) surged 3.18% intraday on October 14, 2025, reaching its highest level since October 2025, driven by strong operational performance and strategic momentum. The rally followed a 25% year-over-year increase in group-wide adjusted property EBITDA, fueled by a 35% rise in Macau property EBITDA and record visitation at key assets like City of Dreams Macau.

Strategic investments in property enhancements and market expansion underscored the company’s growth trajectory. The relaunched House of Dancing Water show achieved 98% occupancy, while the Countdown Hotel renovation aimed to elevate luxury offerings. Melco’s entry into South Asia with City of Dreams Sri Lanka, opening in August 2025, targeted premium Indian tourists, reflecting its focus on high-margin non-gaming revenue streams. Regional resilience was evident as Cypriot and Philippine operations showed recovery post-geopolitical disruptions.

Financial discipline remained central to investor confidence. The company refinanced $1 billion in debt at favorable rates, repurchased $120 million of shares, and maintained $1.2 billion in consolidated cash reserves. Cost-cutting measures, including reducing Macau operating expenses to $3 million per day, highlighted operational efficiency. However, risks such as China’s economic recovery, regulatory shifts, and currency fluctuations remain critical to monitor.

Analyst sentiment was mixed, with Credit Suisse and Macquarie upgrading MLCO to “Outperform” and “Buy,” while others cautioned on valuation concerns. Institutional trading activity reflected divergent views on the stock’s near-term potential. Looking ahead, Melco’s Q3 outlook hinges on Sri Lanka’s contribution, capital expenditure increases for property upgrades, and its ability to balance debt reduction with growth investments in premium customer segments.