Melco International Development Co, the majority owner of Macau integrated resorts operator Melco Resorts & Entertainment, saw its profit grow 109.4% to HK$344.6 million in the six months to 30 June 2018, with the company putting the improved results down to “better group-wide performance in all gaming segments, recovery of previously provided doubtful debt and lower finance costs.”
The profit boost comes despite a slight 1.6% decline in revenue to HK$19.8 billion, impacted by higher commissions which the company says are now being reported as a revenue reduction. Under previous reporting rules, revenue would have increased 7%, Melco said.
Adjusted EBITDA grew 16.7% to HK$5.5 billion, up from HK$4.7 billion, due to the previously stated gaming improvement and recovery of doubtful debt.
Melco Resorts last month reported a 5% decline in revenue for 2Q18 to US$1.23 billion (HK$9.7 billion) under the same revised reporting rules.
The company celebrated two significant property launches in the first six months of 2018, including a temporary gaming facility in Cyprus while construction on City of Dreams Mediterranean gets underway, and luxury hotel Morpheus at City of Dreams in Macau.
“These developments help Melco International to further its goals to be a pioneer in premium travel, leisure and entertainment and to deliver world-class premium offerings that go beyond gaming to satisfy tomorrow’s most sophisticated international travelers,” Melco International said in its results announcement.
The company also reiterated its Japan ambitions.
“Japan remains a pivotal focus of the group’s long-term plan,” it said. “We view Japan as a market with the potential to rank among the largest global gaming destinations in Asia, second only to Macau.
“With the goal to become a trusted partner in Japan’s integrated casino resorts industry, the group has been dedicating the necessary resources and investments for the development of this potential market. Following the establishment of a Japanese subsidiary, opening an office in Tokyo and appointing a local leadership team in 2017, the group has since opened an Osaka office in the first half of 2018.
“With the successful passage of the Integrated Resorts Implementation Bill at Japan’s National Diet, our current near-term aims are to explore local partnerships that will help us build a strong consortium and to build up our local team to support our business development efforts.”
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