Melco International Development Ltd reported a net loss of HK$4.58 billion ($584 million) as against HK$3.75 billion ($478 million), the loss of the company widened 22 percent on a year-on-year basis.
Net revenue of the company dipped 28.5 percent at HK$6.03 billion ($768 million) from HK$8.43 billion ($1.07 billion), a regulatory earnings filing submitted to the Hong Kong Stock Exchange shows.
With Macau component contributing almost 69 percent to the revenue pie, dent in topline was largely attributed to heightened border restrictions in Macau and mainland China related to COVID-19, which led to softer performance in the company’s casino and hospitality operations.
“The decrease in net revenues was primarily attributable to heightened border restrictions in Macau and mainland China related to COVID-19, which led to softer performance in our casino and hospitality operations in the six months ended 30 June 2022,” the company statement read.
Net revenues chiefly comprises of Casino and Hospitality segment revenues only.
Macau component contributed 69 percent to the revenue pie at HK$4.15 billion ($528 million), whereas Philippines contributed 26 percent to the pie at HK$1.55 billion ($198 million), Cyprus 5 percent at HK$296 million ($38 million) and Japan constitutes 0.5 percent at HK$28 million ($4 million).
“Businesses in the Philippines and Cyprus have been improving with volumes gradually recovering toward pre-COVID levels. City of Dreams Manila has operated at full capacity since 1 March 2022,” the company release read.
In Macau, the construction of the much-anticipated Studio City Phase 2 is progressing. The company will continue to monitor the markets closely to determine the appropriate time to open and currently anticipate phasing the opening beginning in the second quarter of 2023.
Dedicated to promoting economic diversification in Macau, the company launched Super Fun Zone at Studio City, an exciting new playground for families and children that will further complement the hospitality offerings of the fun-filled Studio City.
In June 2022, the amendment to the Macau gaming law was passed by the Legislative Assembly and signed by the Chief Executive of the Macau SAR. The company believes the amended gaming law will help to promote the sustainable and healthy development of Macau’s gaming industry.
In the Philippines, City of Dreams Manila has been operating at 100% capacity since 1 March 2022.
The company expects to see further growth if more of the travel restrictions around Asia are lifted in the second half of the year.
Whereas the company’s business in Cyprus also saw a pick-up in volumes and profitability.
Melco anticipates a gradual revival in tourism from the pandemic in the second half of the year, which will be favourable to the Cyprus segment.
The opening of City of Dreams Mediterranean is set in early second quarter 2023, subject to regulatory approvals for such extension and construction progress, the company press release read.
Basic loss per share attributable to owners of the Company was HK$1.58 for the six months ended 30 June 2022, compared to basic loss per share attributable to owners of the Company of HK$1.09 for the six months ended 30 June 2021.
The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2022.
Lawrence Ho, Group Chairman and Chief Executive Officer of Melco International, said, “COVID-19 outbreaks and related restrictions continued to have material impact on our operations and financial position in the first half of 2022. Nevertheless, businesses in the Philippines and Cyprus have been improving with volumes gradually recovering toward pre-COVID levels. To cope with the challenges, disciplined liquidity management remained a key focus of the Group with prudence in managing its balance sheet and liquidity profile in the challenging environment.”