Melco International posts 90-fold profit rise after Melco control

Macau gaming operator Melco International Development has reported more than 90-fold increase in net profit for the six months ended June 30, 2016 – derived from a special gain from taking majority control of Melco Crown Entertainment Limited (MCE).

The company became the single largest shareholder of MCE after Australian-listed Crown Resorts reduced its stake in the company. The company consolidated the results of MCE for the first time in history – which brought a gain of HK$10.39 billion ($1.3 billion) to the company.

Profit attributable to owners of the company was HK$10.37 million for the period.

The results were also aided by the ramp up of Studio City, MCE’s newest resort which opened in October last year, according to the company.

“The ramp-up of Studio City has already started to accelerate, and its visitation and mass table yield both recorded significant increase in July 2016. This growth is expected to gain more momentum in the second half of the year and beyond,” said the company in a statement.

Studio City is also planning to add VIP rooms with 30 tables by the end of the third quarter, said the company.

In regards to its City of Dreams property, the group said it believes the new retail expansion in Cotai will “become a retail sensation to the currently suffering retail scene.”

In addition, the construction of its fifth hotel tower, designed by Dame Zaha Hadid is “progressing well”.

Given the group’s strong cash position, the board has declared a payment of a special interim dividend of HK1.5 cents per share for the six month period.

On Wednesday, Hong Kong-listed Summit Ascent Holdings, also controlled by casino entrepreneur Lawrence Ho, said it swung to a net profit for the first half of the year to HK$1.7 million, compared to a loss of HK$43.8 million in 15H1.

Summit Ascent Holdings, which owns Russian casino Tigre De Cristal, said the main contributor to the profitability of the company came from VIPs from Northeast Asia.

Monthly rolling chip turnover increased from HK$258 million in November 2015 to HK$2 billion in July 2016 and HK$2.2 billion in August 2016.

The operator says it expects the operating results of Tigre de Cristal to be even better in the second half of the year.