Melco International Development Ltd, the majority owner of Asian-based casino operator Melco Resorts & Entertainment, has reported a 10.5% increase in profit to HK$1.8 billion (US$232.2 million) for the year ended 31 December 2019, driven by an increase in gaming revenues.
The company saw net revenues rise 10.5% to HK$45 billion (US$5.81 billion) in 2019, with Adjusted EBITDA up 15.1% to HK$12.5 billion (US$1.61 billion) – the majority of which was contributed by Melco Resorts where FY19 operating revenues increased 10.6% to US$5.74 billion.
Melco’s interests include City of Dreams, Studio City, Altira Macau and Mocha Clubs in Macau, City of Dreams Manila in the Philippines and five casinos in Cyprus comprising four satellite casinos and one temporary facility pending development of €550 million integrated resort project City of Dreams Mediterranean.
Melco International Development Chairman and CEO Lawrence Ho said the company’s strong performance and ongoing development pipeline positions it well to overcome the challenges currently presented as a result of COVID-19.
“While 2020 will inevitably be dominated by the unfolding of the COVID-19 crisis, we enter this year of uncertainty in the best of financial and operational health,” he said.
“Our modest gearing ratio, recent cost cutting measures and CapEx deferrals allow us to maintain our regular dividend program and position us well to counter the hurdles posed by COVID-19.
“We are long-term thinkers and acutely aware that a rolling program of re-investment and improvement is key to retaining existing and attracting new guests. In 2019, this was proven by significant returns in both revenue and visibility from our iconic Macau hotel Morpheus which opened in mid-2018.
“Our big news is that work has begun on our next major landmark, Studio City Phase 2, centering around two striking hotel towers that will incorporate approximately 900 luxury rooms and suites. Meanwhile, renovation of Nüwa at City of Dreams was also started in early 2020.
“2020 promises to be a very difficult year for global integrated resort operators. However, we expect our commitment to developing world-class hospitality and entertainment facilities will put us in a good position to bring the best experience to our guests, and will see us through the challenging times in the near future.”
Melco International Development said it has recommended a final dividend of HK3.01 cents per share for the year ended 31 December 2019.