Melco International Development Ltd, the parent company of Macau’s renowned concessionaire Melco Resorts & Entertainment, showcased resilience amidst adversity in 2023. Despite challenges, the company displayed promising signs of recovery, marked by a narrowed loss attributable to owners and a substantial increase in group-wide net revenues.
Financial Performance:
In 2023, Melco International reported a loss attributable to owners of HK$1.74 billion, significantly reduced from the previous year’s loss of HK$5.11 billion. This improvement can be attributed to several factors, including enhanced performance in casino and hospitality operations following the relaxation of COVID-19 restrictions in Macau. The opening of Studio City Phase 2 and the contribution from City of Dreams Mediterranean further bolstered revenues. However, higher net interest expense and asset impairments somewhat offset these gains.
Revenue Growth and Operational Highlights:
Melco International witnessed a remarkable 180% increase in group-wide net revenues, reaching HK$29.5 billion in 2023. This surge was fueled by various factors, including the easing of COVID-19 restrictions, new property openings, and innovative initiatives such as residency concerts at Studio City. Adjusted EBITDA also experienced a notable turnaround, reaching HK$7.51 billion, a significant improvement from the previous year’s loss.
Strategic Initiatives and Future Outlook:
Looking ahead, Melco International remains committed to supporting Macau government initiatives aimed at boosting international visitor arrivals. The company continues to invest in diverse cultural and tourism projects to enhance visitor experiences. Notable ongoing projects include the residency concert series at Studio City, construction of the Cineplex at Studio City Phase 2, and plans to renovate The Countdown hotel. Additionally, the company anticipates growth in the Philippine gaming market and is prepared to navigate uncertainties in Cyprus, a key market impacted by regional conflicts.
Melco International Development Ltd’s resilient performance in 2023 underscores its ability to adapt and thrive in challenging environments. With a strong portfolio of properties and a focus on innovation, the company is well-positioned to capitalize on opportunities as global travel rebounds. As it continues to drive leadership in integrated resort development, Melco International remains optimistic about its long-term prospects across regions while remaining agile in addressing near-term challenges.