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City of Dreams Mediterranean: Q4 Earnings Surge Driven By Operational Momentum

by THEFUTURE.TEAM

March 5, 2025

City of Dreams Mediterranean, the group behind the renowned casino at Fasouri in Limassol, recorded a robust earnings boost in Q4 2024, posting an increase of $11.8 million. This surge is primarily attributed to the sustained growth in operations following the mid-2023 launch of City of Dreams Mediterranean—a move that has significantly elevated performance in both the mass market and non-gaming sectors.

Strong Financial Performance

According to an announcement from the group, the adjusted EBITDA—earnings before income tax, depreciation, and amortization—soared to $59.2 million in Q4 2024, up from $47.3 million during the same period in 2023. This robust performance underscores the strategic impact of expanding operations and enhancing customer engagement.

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Improved Chip Volume Efficiency

A critical metric, the “rolling chip volume” margin, stood at 3.06% in Q4 2024, a remarkable turnaround from a negative 8.85% recorded in Q4 2023. This improvement places the margin well within the expected range of 2.85% to 3.15%, signaling efficient management and robust operational execution.

Mixed Trends In Table Games

Despite overall gains, the casino experienced a notable decline in table game revenue in the mass market segment, dropping to $126.5 million in Q4 2024 from $87.6 million in Q4 2023. However, the profit margin for table games remained relatively stable, registering 21.8% in Q4 2024 compared to 22.1% the previous year. This stability amid shifting revenue dynamics reflects a well-balanced portfolio and strategic focus on operational efficiency.

A Strategic Win For City Of Dreams Mediterranean

The continued operational growth following the opening of City of Dreams Mediterranean has clearly paid off. By boosting both non-gaming and mass market performance, the group has not only enhanced its earnings profile but also set a new benchmark for operational excellence in the region.

As the casino industry faces evolving market dynamics, City of Dreams Mediterranean’s performance in Q4 2024 illustrates the power of strategic expansion and operational agility—a story of transformation and sustained growth in an increasingly competitive environment.

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US–Israel Confrontation With Iran To Trigger Significant Decline In Middle Eastern Tourism

Tensions linked to the confrontation between the United States, Israel and Iran are expected to affect tourism across the Middle East. According to estimates by Tourism Economics, international arrivals in the region could decline by between 11% and 27% by 2026. The projection, reported by Reuters, contrasts sharply with forecasts published in December that anticipated a 13% increase in arrivals this year.

Economic Implications Of Declining Visitor Numbers

Updated estimates indicate that the region could lose between 23 million and 38 million international visitors. Tourism-related spending may fall by $34 billion to $56 billion if the downturn materialises. Such figures illustrate how geopolitical instability can quickly influence travel demand and regional economic performance.

Erosion Of Traveller Confidence Amid Heightened Uncertainty

Growing security concerns are already weighing on travel sentiment. Periods of geopolitical tension typically lead travellers to postpone or redirect trips, particularly to destinations located near active conflict zones. As uncertainty increases, tourism-dependent economies in the region may face additional pressure on revenues and investment.

Cyprus: An Alert Regional Hub

Cyprus is closely monitoring these developments due to its geographic proximity to the Middle East. Although the island is not directly involved in the conflict, regional instability can influence booking trends and traveller perceptions. Recent security incidents near the British base in Akrotiri have further highlighted how tensions in neighbouring areas can affect confidence across the wider Eastern Mediterranean tourism market.