Aug 13, 2026 earnings call — REM opening and Macau operations update
Group-wide adjusted property EBITDA was approximately $304 million in the second quarter of 2026.
Revenue $1.3B (est $1.3B) · EPS $0.06 (est $0.06)
Key quotes
"The opening of REM marked an important milestone in the continued evolution of City of Dreams, delivering a distinctive new experience for our guests, which we believe is not available anywhere else in Macau."
"We are actively evaluating opportunities to incorporate greater flexibility across our operations to better align our cost base with evolving demand and business volumes."
"The maturity date of the RCF was extended from April 2027 to June 2031, and the facility size increased by approximately $821 million, resulting in a total RCF size of $2.8 billion."
Analyst Q&A 6
REM difference and dividend timing
Q (George Choi · Citi): He asked how REM differs from existing non-gaming offerings at City of Dreams. He also asked how to think about the dividend policy and timing.
A: Management said REM is already soft-open and will have a grand opening after Golden Week in October. They said REM is unique and highly differentiated and will complement their 5-star hotel. On dividends, they delayed restarting until 2027 and will resume when it can be substantive and meaningful.
"We think in 2027, we will be in a position to recommence the dividend without providing any specific target on that." — Geoffrey Davis
M&A optionality and World Cup impact
Q (David Bain · Texas Capital): He asked if the company is considering go-private or other M&A options given current values. He also asked why the World Cup had more impact this year and whether entertainment will drive benefits with REM and retail.
A: Management said they are open-minded on transactions but their priority is debt repayment and improving Macau performance, plus learning Sri Lanka and the Indian market. They said the World Cup likely had a larger impact this year because sports betting substituted some gaming, reducing volumes, and they are looking at entertainment opportunities but had no single large event to point to.
"I think in June and July, I would say that our experience is likely that it was, to some degree, a substitute to some of their gaming activity." — Evan Winkler
Daily OpEx and post-World Cup trends
Q (Joseph Stauff · Susquehanna): He asked for the outlook for Macau daily OpEx over the next quarters with REM launching. He also asked whether post-World Cup demand is back to normal or stronger/weaker.
A: Management said if they include REM and other activities, daily OpEx is probably closer to $3.3 million to $3.4 million. They said the World Cup impact was larger than expected in June and July, but by late July and early August activity reverted toward normal and customers returned.
"I think if we include REM and other activities, we're probably looking at something closer to $3.3 million to $3.4 million." — Evan Winkler
Cost flexibility and regional competition
Q (John DeCree · CBRE): He asked what specific steps they are taking to make costs more flexible to match business volumes. He also asked whether regional gaming competition has increased versus pre-pandemic levels.
A: Management said they are reviewing the whole cost base and looking for efficiencies and expect to keep the $3.4 million per day OpEx going into Q3 by finding and executing cost savings. They said they will trim spending in areas with low return while protecting premium guest experience. On regional competition, they said not much change because Macau mainly serves Mainland China, with only a small rise in Southeast Asian and Korean tourists.
"And as that ramps up, we think we can keep our $3.4 million per day OpEx number consistent going into the third quarter as we find and execute on cost savings." — Geoffrey Davis
Retail renovation disruption and CapEx
Q (George Choi · Citi): He asked how disruptive the City of Dreams retail renovation will be in the next quarters. He also asked for the latest CapEx guidance for this year and next year.
A: Management said there will be significant construction disruption through the middle of next year and that guests will be impacted until about June of next year, but they expect an improved retail experience from June 2027 onward. They provided CapEx guidance: about $225 million for the remainder of this year, and $275 million to $300 million for next year.
"For the remainder of this year, we've got about $225 million of CapEx across the group." — Geoffrey Davis
2027 debt and VIP softness
Q (Peter McGuire · Vanguard): He asked how they plan to address the MLCO 2027 maturity and what capital moves they've made so far. He also asked whether VIP softness was due to competition such as Wynn.
A: Management said they have made no definitive plans yet for the 2027 maturity, have many options, and may use the upsized RCF to take down bonds, with a decision later this year. On VIP, they said premium direct rolling chip business remains strong, they took a hit during the World Cup likely due to sports betting but players have returned, and they noted Q2 VIP win rate was 2.7%, below their normal 3% and below last year's levels.
"So on the MLCO 2027, we haven't made any definitive plans on how to address that maturity, but I think we have a lot of options." — Geoffrey Davis