Melco International Development (200) H1 2025 earnings summary

Executive summary

• Net revenues rose 12.4% year-over-year to HK$19.96 billion for H1 2025, driven by improved gaming and non-gaming operations, with a return to profitability (HK$350.8 million profit vs. HK$253.2 million loss in H1 2024).

• Adjusted EBITDA increased 19.5% to HK$5.37 billion, reflecting operational improvements and higher business activity.

• Strategic investments in property upgrades, premium experiences, and relaunch of entertainment offerings boosted non-gaming revenue and visitation.

• Expansion into Sri Lanka with the opening of City of Dreams Sri Lanka in August 2025, demonstrating a capital-light strategy for emerging markets.

• No interim dividend was declared for the period.

Financial highlights

• Net revenues: HK$19,964.6 million (up 12.4% YoY); Adjusted EBITDA: HK$5,365.7 million (up 19.5% YoY).

• Casino revenues grew 13.9% to HK$16.54 billion; non-gaming revenues also increased across rooms, F&B, and entertainment.

• Profit attributable to owners: HK$350.8 million (vs. HK$253.2 million loss YoY); Basic EPS: HK$0.18 (vs. HK$-0.13 YoY).

• Net asset value per share: HK$0.4 (vs. HK$0.02 YoY, restated for rights issue).

• Gearing ratio: 71.9% as at 30 June 2025 (vs. 71.6% at 31 December 2024).

Outlook and guidance

• Positive outlook supported by robust tourism recovery in Macau, with visitor arrivals up 14.9% YoY to 19.2 million in H1 2025.

• Continued focus on enhancing non-gaming offerings, premium hospitality, and entertainment to drive sustained growth.

• Strategic review of City of Dreams Manila to optimize portfolio and unlock capital.

• Ongoing property upgrades and new entertainment offerings are expected to drive future performance.

• Expansion into Sri Lanka marks entry into South Asia, leveraging capital-light model for future growth.