Melco International posts 9.7% 1H21 revenue increase, boosted by mass

Melco International, cyprus

Melco International Development Limited posted a net revenue increase of 9.7% to HK$8.43 billion for 1H21 based on gradual business recovery, particularly of the gaming mass market.

Overall the Group’s net revenues for the six-month period ended 30 June 2021 was HK$8.43 billion, an increase of 9.7% compared with the HK$7.68 billion recorded in the corresponding period of 2020. 

The increase was largely due to an improvement in performance across the mass market table games segment and non-gaming operations owing to an increase in inbound tourism in Macau compared with the previous year. Loss after tax for the period was HK$3.75 billion, compared with loss after tax of HK$7.06 billion in the same period of 2020.

Adjusted EDITDA was HK$732.5 million vs negative Adjusted EBITDA of HK$886.2 million for the six months ended 30 June 2020.

The Board did not recommend the payment of an interim dividend.

Updates wise, the company noted that construction work at Morpheus and Studio City Phase 2 is underway. The Countdown hotel was closed for transformation into a luxury hotel, while Altira Macau will be repositioned to cater to the premium mass segment from the third quarter of this year.

Meanwhile, the development of City of Dreams Mediterranean continues, with a target opening in summer 2022.

In turn, the Group partnered with Agile Group to develop a world-class residential, entertainment and hospitality mixed-use complex in the Greater Bay Area. The majority of the project, including the theme park, is expected to be completed by 2025.

On CRS the Group launched the MOP16 million “Get the Jab” immunity incentive program to support government efforts for widespread vaccination. As of 31 August 2021, over 70% of its colleagues in Macau and Hong Kong have been vaccinated.

Lawrence Ho, Group Chairman and Chief Executive Officer of Melco International, said, “Macau has enjoyed a steady recovery in its overall economy as travel restrictions loosen and visitors gradually return. This also led to a gradual recovery in business levels at our integrated resorts during the second quarter of 2021. With the most notable recovery currently being driven by mass and premium mass-market players, we will continue to focus on the development of these market segments going forward.

Macau

“We remain committed to our investment program in Macau and abroad. In Macau, the facility upgrade works at City of Dreams are ongoing. With the newly renovated Nüwa re-opened on 31 March 2021, construction work at Morpheus, centred around the addition of new suites and guest rooms, is in progress. The Countdown hotel was closed at the end of this March for transformation into a luxury hotel.

On the other hand, we will move forward with the strategic repositioning of Altira Macau to cater to the premium mass segment from the third quarter of this year. It will see Altira Macau emerge as a more robust and profitable business as a result. On top of that, construction of Studio City Phase 2 is underway. As part of our unwavering commitment to bringing world-class entertainment to the city, the much-anticipated Studio City Water Park officially opened in this May and received an enthusiastic market response.

Greater Bay

“The Group has also continued to take advantage of the opportunities arising from the rapid development of China, particularly those in the Greater Bay Area. We successfully tendered for a mixed-use site in Zhongshan, Guangdong province, to be used as the location for a premium residential, entertainment and hospitality mixed-use complex, which will be built in partnership with Agile Group.

With a wealth of experience in creating and developing world-class entertainment amenities, we will leverage on our own successful intellectual properties created in Macau into the development and management of the theme park, restaurants and other hospitality facilities in the complex. The majority of the project, including the theme park, is expected to be completed by 2025.

Mediterranean

“Beyond Macau, construction of the City of Dreams Mediterranean project is progressing well with a target opening in summer 2022. The Group remains committed to Japan and will continue to explore development opportunities in the country. We will continue to take a disciplined and pragmatic approach to the implementation of our global development plan while remaining open to promising new opportunities.

Outlook

“We are encouraged by the progress of the COVID-19 vaccine rollouts in Macau, Hong Kong and China, and, along with the increasing vaccination rates across the globe, the relaxation of current travel restrictions is becoming more likely, and the recovery of the tourism industry edges closer. In the meantime, the Group will continue to ensure the safety of its guests and employees around the world and utilize its wealth of experience to remain resilient in the face of the current challenging operating environment.”

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