Melco H1 net revenue up 12.9%, profit down slightly

Morpheus

Melco International Development Limited said it was able to achieve stable operating and financial results in the first half of 2019 despite “ongoing challenges in the global economy.”

The company saw its profit fall slightly in 19H1, down 4.2 percent year-on-year to HK$1 billion. 

Net revenues increased 12.9 percent year-on-year to HK$22.4 billion.

Melco said this was mainly attributable to increased casino revenue as a result of better performance in the mass market table games segment.  

Adjusted EBITDA was HK$6.4 billion, representing an increase of 15.9 percent. 

Lawrence Ho, Group Chairman and Chief Executive Officer of Melco International said the company will look to continue its global expansion strategy in the first half of 2019. 

“In Macau, Morpheus, our iconic flagship hotel for City of Dreams in Macau, has become an instant global architectural icon, receiving numerous international recognitions and awards since its opening in June 2018. This signals global recognition for our dedication to excellence and further strengthens the Group’s position as a leading integrated resort operator globally.”

“To better cater to our target market segments, the Group is overseeing exciting developments across our properties that will further boost our competitiveness to offer differentiated and premium services to our guests. Moving forward, the completion of City of Dreams Phase 3 will be a key focus, and we will continue to undertake a series of property upgrades at Studio City.”

The company has also been focused on developing their IR and casino in Cyprus, with  City of Dreams Mediterranean scheduled to open in 2021. 

With the launch of Cyprus Casinos in Limassol, Nicosia and Larnaca in 2018 and Ayia Napa satellite casino on July 2019, the last satellite casino in Paphos is scheduled to launch in the coming months, said the company. 

“For Cyprus, the launch of Cyprus Casinos, including the temporary casino and satellite casinos, has received favorable responses since they opened. With the strong support from the Cypriot government and positive word of mouth by patrons in the region, we anticipate a continued uptick in customer growth and are confident that the project will further position us as a leader in the global market,” said Ho. 

The company has also been looking to acquire a 19.99 percent stake in Crown Resorts Limited, a move that it believes will expand its business presence into two new markets, Australia and the United Kingdom. 

However, the plans are on hold at the moment pending an Australian regulatory investigation into Melco’s suitability as a shareholder in Crown. 

“Japan remains to be our core focus and we are very dedicated to becoming an international integrated resort operator in the country,” added Ho. 

“In the past few months, we have released designs of our proposed Osaka integrated resort and participated in the Yokohama’s Request for Information and Osaka’s Request for Concept. With our focus on the Asian premium segment, high-quality assets and dedication to world-class entertainment offerings, we believe the Group is in a strong position to be a partner to Japan’s journey in its integrated resort development with a unique Japanese touch.”