Melco International reduces annual net loss
The company has reported a 22.5 per cent increase in net revenues.
Hong Kong.- Melco International Development has shared its financial results for the year 2024. It posted net revenue of HK$36.17bn (US$4.65bn), an increase of 22.5 per cent in year-on-year terms. The growth was mainly attributed to the recovery in inbound tourism to Macau in 2024 and the ramp-up of operations following the opening of Studio City Phase II in April 2023 and City of Dreams Mediterranean in mid-2023, which led to improved performance in casino and hospitality operations.
The group’s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was HK$9.03bn (US$1.16bn), compared with HK$7.51bn (US$965.5m) in 2023. The net loss attributable to owners amounted to HK$784.6m (US$100.9m), a 55 per cent reduction.
Casino revenue totalled HK$29.43bn (US$3.78bn), up 22.2 per cent year-on-year. Rooms revenue was HK$3.29bn (US$422.96m), up 24.5 per cent, while F&B revenue was HK$2.23bn (US$286.7m), up 36.4 per cent. Entertainment and retail revenue rose by 4.7 per cent to HK$1.21bn (US$272.55m).
Lawrence Ho, group chairman and CEO, said: “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.
“Our core market, Macau, has seen a robust recovery in tourism, with visitor numbers nearing 2019 levels. Recognising the evolving consumer landscape, particularly the growing emphasis placed on experiences among the burgeoning middle class, we invested in our business with a focus on enhancing the customer experience to build a stronger foundation for growth. We implemented initiatives to enhance property engagement and drive increased traffic, and launched new attractions including Studio City Cinema, which features the first Dolby Cinema in Macau and Hong Kong. We also launched a revamped loyalty program offering exclusive benefits and personalised experiences. These strategic endeavours are designed to deliver an unparalleled guest experience in the region.
“In the Philippines, City of Dreams Manila has demonstrated resilience despite increasing competition in the market. Our performance remained solid throughout the year 2024, buoyed by increased international visitor arrivals and tourism revenue from inbound tourism expenditures, as well as the government’s heightened commitment to tourism development. As we approach the 10th anniversary of City of Dreams Manila in 2025, the property has proven to be a consistent revenue source for us.
“As for our operations in Cyprus, although City of Dreams Mediterranean and our satellite casinos continue to face challenges presented by ongoing regional conflicts in 2024, we have seen solid increases in their performance. Significant property upgrades implemented post-opening have enhanced guest satisfaction and boosted the overall financial performance of these assets.
“As we approach 2025, we are confident in the growth prospect of our business. In Macau, recent strategic initiatives by the mainland China government, including multi-entry group tour visas between Macau and Hengqin, the expansion of the Individual Visit Scheme, simplified visa applications and the proposed Shenzhen-Macau-Zhuhai bridge connection, are enhancing accessibility to Macau and broadening our customer base.
“The long-anticipated water extravaganza, ‘House of Dancing Water’, will make its grand return in May 2025. We are confident that the once-in-a-lifetime aquatic show will further enhance the existing artistic landscape of City of Dreams, promoting the development and prosperity of the arts and culture in Macau.
“Beyond Macau, we look forward to the opening of the casino at City of Dreams Sri Lanka, which is on track to open in the third quarter of 2025. This transformative project represents a capital-light investment with an attractive return profile, allowing us to extend the City of Dreams brand and broaden our customer base.
“In line with our asset-light strategy, we are evaluating strategic alternatives for City of Dreams Manila to optimise our investments and reallocate resources effectively. Going forward, we will continue to explore similar asset-light models to strategically expand our global footprint. We are also actively assessing feasibility in markets where governments have shown interest in opening up their gaming industries, positioning us to seize new opportunities as they arise.”
