Melco international Development Ltd, the parent company of Macau’s Melco Resorts & Entertainment, reported a loss attributable to owners of the company of HK$253.2 million (US$32.5 million) for the six months to 30 June 2024, narrowed from a loss of HK$733.2 million (US$94.0 million) a year earlier.
In a filing, Melco International said the narrowed loss was due to the improved performance of its casino and hospitality operations as a result of the continued recovery in inbound tourism to Macau. This was, however, partially offset by higher operating expenses as a result of increased business volumes and the ramp up of operations following the opening of Studio City Phase 2 in April 2023 and City of Dreams Mediterranean in mid-2023.
Melco International owns a 51.69% stake in Melco Resorts.
Group-wide net revenue in 1H24 totaled HK$17.8 billion (US$2.28 billion), up 36.3% year-on-year, while Adjusted EBITDA of HK$4.49 billion (US$576 million) was up from HK$3.20 billion (US$410 million) in 1H23. The company did not recommend payment of an interim dividend.
Pointing to its core Macau properties – City of Dreams, Studio City and Altira – Melco International said it had implemented strategic initiatives during the first half of 2024 aimed at expanding revenue streams, enhancing profitability and fostering sustainable growth.
“As part of the commitment to delivering unparalleled experiences to esteemed patrons in Macau, significant investments have been made in the workforce and property enhancements,” it said. “These endeavours are geared towards ensuring the utmost premium experience available within the region.
“Looking ahead, the Group remains confident in its long-term prospects across regions, while standing ready to navigate near-term uncertainties and challenges in a prudent and agile manner.”
The company’s 1H24 results come after Melco Resorts recently reported 2Q23 Adjusted Property EBITDA of US$302.8 million, up 13.3% year-on-year, and net income of US$21.4 million, reversing a net loss of US$23.4 million in 2Q23.
Melco Resorts also operates City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus, and is preparing to fit out and operate its latest venture City of Dreams Sri Lanka.
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