Content Writer: Janice Chew • Monday, 25/11/2025 - 17:04:46 - PM
Melco reported that its hold-adjusted margin for its Macau operations reached 27.6% in its third quarter of 2025, up from 24.8% a year earlier. However, despite that improvement, management noted margin expansion remains hindered by a highly competitive market environment in Macau.
One of the tools Melco has deployed is the rollout of “smart gaming tables” (intelligent baccarat tables) which were completed across its Macau properties in March. But Melco emphasized that as yet they have not seen measurable benefit from the smart tables in terms of improved theoretical hold or margin uplift.
Chairman & CEO Lawrence Ho remarked during the earnings call that many had expected margins to “just rocket” when the junket volume declined in Macau, but that simply hasn’t happened — partly due to competitors reinvesting heavily and drawing market share through aggressive tactics. He urged less emphasis on short-term market share chasing and greater emphasis on margin and EBITDA.
From a strategic standpoint, Melco indicated the competitive intensity in Macau is now past its peak, but still elevated — meaning that while the worst may be behind, the conditions are still not favourable for major margin leap. The company further stated it will approach player reinvestment (i.e., complimentary offers, loyalty incentives) in a more segmented and measured way rather than simply matching rivals.
In short, while Melco is on an improving trajectory in Macau — aided by the post-pandemic recovery and new technology implementation — it is still wrestling with structural challenges in the operating environment. Margin gains are incremental, not transformational at this stage, and the envisioned benefit from smart tables has yet to fully materialise. If you like, I can pull in comparative data for the other major Macau operators to see how Melco stacks up.