{"id":777024132,"date":"2025-03-17T08:49:22","date_gmt":"2025-03-17T11:49:22","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777024132"},"modified":"2026-04-22T00:47:32","modified_gmt":"2026-04-22T03:47:32","slug":"melco-international-expects-to-record-impairment-of-up-to-us128-6m","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/melco-international-expects-to-record-impairment-of-up-to-us128-6m","title":{"rendered":"Melco International expects to record impairment of up to US$128.6m"},"content":{"rendered":"\n

The asset impairment is linked to Studio City.<\/p>\n\n\n\n\n\n\n\n

Hong Kong.- Melco International Development <\/strong>has announced that it expects to record a non-cash impairment on certain assets from about HK$838m (US$107.8m) to HK$1bn (US$128.6m). The impairment is linked to <\/strong>Studio City<\/a>, an integrated resort in Cotai, Macau, and will increase the net loss for the year ended December 31, 2024, by HK$774m to HK$956m (US$122.5m).<\/p>\n\n\n\n

The company expects to record a net loss of between HK$1.5bn (US$192.2m) and HK$1.7bn (US$218.1m) for 2024, compared to HK$3.4bn (US$436.5m) in the previous year.<\/p>\n\n\n

\n
\"Studio
Studio City in Macau.<\/figcaption><\/figure>\n<\/div>\n\n\n

The statement reads: “It is important to note that the anticipated impairment is classified as a non-cash item, meaning it will not affect the group\u2019s cash flow, operations, or overall liquidity. The estimated impairment results primarily from the long-term discounted cash flow valuation method required under HKFRS given the longer than expected ramp up of operations following the opening of Studio City Phase II.”<\/p>\n\n\n\n

The company said no such impairment is required under United States Generally Accepted Accounting Principles as impairment testing is conducted based on long-term undiscounted cash flows, so no impairment was recorded in the\u00a0fourth-quarter and full-year\u00a0financial statements<\/a> of Melco Resorts, published on February 27.<\/p>\n","protected":false},"excerpt":{"rendered":"

The asset impairment is linked to Studio City.<\/p>\n","protected":false},"author":176,"featured_media":777022557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Melco International Development anticipates a non-cash asset impairment of HK$838m to HK$1bn related to Studio City in Macau, increasing its net loss for 2024 to between HK$1.5bn and HK$1.7bn. This impairment, driven by HKFRS long-term discounted cash flow valuation due to a slower-than-expected operational ramp-up for Studio City Phase II, will not affect the group's cash flow or liquidity. Notably, no such impairment is required under US GAAP.","focusai_entities":"Melco International Development, Studio City, Melco Resorts","focusai_location":"Hong Kong, Macau, Cotai","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.85), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Impact on Melco's Capital Structure?","query":"How might this non-cash impairment, despite not affecting cash flow, influence Melco International Development's future capital raising activities or debt covenants, particularly given the longer-than-expected ramp-up of Studio City Phase II?"},{"label":"HKFRS vs. US GAAP Implications?","query":"What are the broader implications for cross-listed iGaming and integrated resort operators regarding the divergence in impairment testing methodologies between HKFRS and US GAAP, and how does this affect investor perception and valuation comparisons?"}],"footnotes":""},"categories":[16338,163],"tags":[24669],"class_list":["post-777024132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-melco-international-development"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777024132"}],"version-history":[{"count":5,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024132\/revisions"}],"predecessor-version":[{"id":777024171,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777024132\/revisions\/777024171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777022557"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777024132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777024132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777024132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}