Melco International Development (200) H1 2024 earnings summary

Executive summary

• Net revenues rose 36.3% year-over-year to HK$17.77 billion for the six months ended 30 June 2024, driven by Macau's tourism recovery, improved casino and hospitality operations, and new property ramp-ups.

• Adjusted EBITDA increased 40.2% to HK$4.49 billion, reflecting higher business volumes and ramp-up of new properties.

• Loss attributable to owners narrowed by 65.5% to HK$253.2 million, while loss after tax narrowed to HK$443.6 million from HK$1.40 billion in the prior year period.

• Major investments included property enhancements in Macau, the launch of Studio City Cinema, and expansion into Sri Lanka with a new integrated resort and a 20-year casino license.

• No interim dividend was declared for the period.

Financial highlights

• Casino revenues grew 35.4% to HK$14.52 billion; food and beverage revenue surged 64.8% year-over-year.

• Basic loss per share improved to HK$0.17 from HK$0.49 year-over-year.

• Total assets stood at HK$86.50 billion, with equity attributable to owners at HK$300.9 million and a gearing ratio of 71.2%.

• Net asset value per share at HK$0.2, down from HK$0.4 at year-end 2023.

• Cash and bank balances were HK$9.20 billion as of 30 June 2024; available and unutilised borrowing capacity of HK$15.22 billion.

Outlook and guidance

• Macau visitor arrivals up 43.6% year-over-year, reaching 82.4% of pre-pandemic levels.

• Strategic initiatives in China, the Philippines, and Cyprus, including expanded visa schemes and infrastructure, are expected to further boost tourism and non-gaming revenue.

• City of Dreams Sri Lanka set to open in late 2024, with casino operations to follow in mid-2025.

• The Group remains confident in long-term prospects but is prepared to navigate near-term uncertainties.