Melco posts higher profit in H1, projects on track

Hong Kong listed Melco International Development Ltd reported an increase of 57.3 percent for the first half of 2014 of HK$907.6 million ($117.11 million), compared with HK$576.9 million in the same year ago period. Its core gaming and Macau business units, operated under the Melco Crown joint venture, saw net revenue grow 4.8 percent to US$2,556.9 million while Adjusted EBITDA increased by 8.6 percent to $701.1 million in H114. Basic earnings per share were HK$58.9 cents, compared with HK$37.6 cents in H113.
The company also reported that its various ongoing projects, both in Macau and overseas, were on schedule and reaching fruition. Preparation work for the fifth and final hotel tower at City of Dreams, designed by the award-winning and internationally renowned architect Dame Zaha Hadid, is already underway and is expected to open in early 2017.
Studio City, a new cinematically-themed integrated resort designed to appeal to a new target demographic, remains on track to open in mid-2015
City of Dreams Manila is set to open later this year and marks Melco Crown Entertainment’s maturation into an international player in the gaming and entertainment industry
The casino project in Vladivostok, Russia as part of an investment partnership with Summit Ascent, will open in the last quarter of this year and is expected to generate meaningful synergies with the Group’s existing gaming and entertainment assets.
Melco has signed a memorandum of understanding with local partner, Veremonte España S.L.U., to take part in the Barcelona World Project as a casino operator as that market develops, expanding the Group’s footprint to Europe.
Lawrence Ho, group chairman and CEO of Melco, said, “While an economic slowdown in China may negatively impact Macau, we believe the Central Government’s strategic direction towards more sustainable and diversified growth are prudent and will have lasting benefits to the long-term economic development in Macau. Looking ahead, we expect our existing operations to continue to prosper and are optimistic about the projects in our development pipeline. We anticipate new opportunities will present themselves as the gaming industry continues to grow worldwide. Melco continues to strive to realize our vision to being a global market leader in the gaming, leisure and entertainment industry.”
Mr. Ho was honored as the “Best CEO” by both Corporate Governance Asia and Finance Asia magazines in 2014, and was also selected as the “Best CEO” in the gaming and lodging sector in the annual poll organized by Institutional Investor magazine.