Melco International Development Limited, the parent company of local gaming operator Melco Resorts, has reported a 10.5 per cent year-on-year rise in net revenues for 2019, amounting to some HK$45 billion (US$5.8 billion), the group’s latest financial report indicated.
Profits from the group increased by the same percentage last year to HK$1.8 billion, as Adjusted EDITDA grew 15.1 per cent year-on-year to HK$12.5 billion.
The group’s CEO, Lawrence Ho, pointed out that the group managed to navigate ‘the challenging operating environment in 2019′, with global economic growth threatened by the Sino-US trade war, the economic slowdown in China and social unrest in Hong Kong in the second half of the year to still report positive results.
Melco is currently upgrading City of Dreams and its Nüwa hotel in the property, while works at Studio City Phase 2 were initiated to add two hotel towers that will add some 900 luxury rooms and suites.
Construction of its City of Dreams Mediterranean, Cyprus’ first integrated casino resort, was also said to be making ‘good progress’.
The gaming group also addressed the challenges of the current Covid-19 pandemic, with the crisis leading it to reassess its ‘non-core investments’ as the outbreak affected tourism in Asia and the rest of the world.
‘As we intend to focus on our key investments currently earmarked for Macau, Manila, Cyprus and Japan, we decided not to pursue our planned investment in Australia for the second tranche of shares in Crown Resorts Limited. We believe this decision can preserve our capital to be deployed on our core assets,’ the group added.
In February of this year, Melco Resorts announced that it has decided to stop the second half of its purchase deal for a 20 per cent share in Crown Resorts Limited, citing the impact of the coronavirus outbreak as the main reason for its decision
‘2020 promises to be a very difficult year for global integrated resort operators. The recent Covid-19 outbreak, along with travel bans, visa restrictions and suspended flights, are poised to hit global tourism and impact the number of visitors to all our integrated resorts.