Melco International Development Ltd, the majority owner of Macau-based casino operator Melco Resorts & Entertainment, has reported a loss after tax of HK$12.38 billion (US$1.59 billion) in 2020 due to the impact of COVID-19 on its operations across Asia and Europe.
The 2020 result was a long way off the HK$1.77 billion (US$227.7 million) in profit recorded in 2019, with net revenues falling 70.2% year-on-year to HK$13.42 billion (US$1.73 billion).
Melco International holds a 55.8% stake in Melco Resorts, which in turn oversees City of Dreams, Studio City, Altira and Mocha Clubs in Macau, plus City of Dreams Manila in the Philippines and Cyprus Casinos in Cyprus, including its €550 million City of Dreams Mediterranean development.
As a result of the softer performance of all of its gaming operations, Melco International saw its Adjusted EBITDA fall to a loss of HK$1.20 billion (US$154.4 million) in 2020, compared to Adjusted EBITDA of HK$12.50 billion (US$1.61 billion) for the year ended 31 December 2019. As a result, the Board has not recommended payment of a final dividend for the year.
“2020 was certainly a very difficult year worldwide, however we are confident that Macau will achieve a turnaround sooner rather than later, as it remains the most attractive integrated resort market in the world,” said Melco Group Chairman and CEO, Lawrence Ho.
“Despite the challenges, we can see our integrated resorts experiencing a moderate recovery in business levels towards the fourth quarter of 2020. This was substantiated by the positive Property EBITDA for the Macau operations, as well as our global operations as a whole in the fourth quarter of the year.”
“In respect of the Group, we trust that with the strengthening of our financial position through recent capital market transactions, we can overcome the adversities which may transpire in the near term, while concurrently investing for the future.”
Ho noted that development and expansion projects in Macau and Cyprus were ongoing, with work now set to start on transforming The Countdown Hotel at City of Dreams Macau into Libertine following the recent completion of upgrade works at Nüwa.