Hong Kong Stock Exchange-listed Melco International Development saw a significant reduction in loss for 2024, according to the group’s most recent financial results.
The company is the listed parent of Macau-centric gaming operator Melco Resorts & Entertainment.
For the year, the company registered a loss attributable to owners of the company amounting to HK$784.6 million ($100.9 million). This is a 55 percent yearly reduction.
The decrease in loss was bolstered by a 22.5 percent increase in net revenues, totaling HK$36.17 billion ($4.65 billion). The group attributes the revenue increase to the continued recovery in inbound tourism to Macau in 2024 as well as the ramp up of operations following Studio City Phase 2’s opening and that of City of Dreams Mediterranean, both in 2023. The group notes that the two ramp ups led to ‘improved performance in our casino and hospitality operations for the year’.
Adjusted EBITDA also improved, rising to HK$9.03 billion ($1.16 billion), up from HK$7.51 billion ($965.5 million) in 2023.
During the year the group’s casino revenues rose by 22.2 percent, totaling HK$29.43 billion ($3.78 billion).
Rooms revenue rose by 24.5 percent, to HK$3.29 billion ($422.96 million), while F&B revenue increased by 36.4 percent to HK$2.23 billion ($286.7 million). Despite the group’s heavy investment in entertainment options during the year, entertainment and retail revenue rose by just 4.7 percent yearly to HK$1.21 billion ($272.55 million).
During the year, the group notes that a longer than expected ramp up of operations following the opening of Studio City Phase 2 resulted in an impairment of HK$931.3 million ($119.73 million). Regarding the group’s Taipa property, Altira Macau, the group recorded net impairments of HK$1.11 billion ($142.7 million). The group attributes this to market conditions, lingering disruptions to business caused by COVID, and the group’s earlier cessation of arrangement with junket promoters in Macau.
Results and strategy
Speaking of the results, Melco International Chairman and CEO Lawrence Ho noted that “In 2024, we pursued strategic expansion and refinement to invest in a brighter future. I am pleased to report that our efforts are beginning to yield results, marking a meaningful market gain and we expect this positive momentum to continue into 2025.”
Speaking of Macau, the executive noted that it is aiming to “meet the evolving demands of the growing middle class,” and that it is “elevating the premium experience through innovative investments”.
Further abroad, the group notes that the “Performance of City of Dreams Manila remained solid throughout 2024, supported by increased international visitor arrivals and tourism revenue from inbound tourism expenditures, as well as the government’s heightened commitment to tourism development.”
Regarding its Cyprus property, the Chairman indicated that “operational upgrades at City of Dreams Mediterranean and our satellite casinos have driven measurable performance improvements”.
The group is also expecting to open its casino in City of Dreams Sri Lanka in the third quarter of 2025, which the executive termed a “capital-light investment with an attractive return profile, allowing us to extend the City of Dreams brand and broaden our customer base.”
The Melco Chairman further noted that “Guided by our asset-light strategy, we also remain proactive in evaluating partnerships and exploring emerging markets.”
