Melco International sees steep drop in profit in 15H1

Melco International reported profit attributable to owners of HK$111.1 million (US$14,.3 million) for the six month period ended 30 June 2015, down from HK$907.6 million year-on-year.

Basic earnings per share was HK7.2 cents for the period compared to HK58.9 cents per share in 14H1.

The company said its core gaming business operated through its major associate Melco Crown Entertainment “delivered a solid operating and financial performance in what continues to be a challenging environment within Macau.”

Melco International’s net revenue and adjusted property EBITDA amounted to $1.97 billion and $458.2 million respectively in the first half of 2015, representing a decrease of 22.9 percent and 34.6 percent.

“The decreases were primarily attributable to lower group-wide rolling chip revenues and mass market table games revenues in Macau, partially offset by the net revenue generated by City of Dreams Manila, which started operations in December 2014.”

For the six months, the group’s flagship Macau property, City of Dreams, recorded a net revenue of $1.46 billion, down of 28.5 percent year-on-year.

Mass market table games drop decreased by 8.8 percent to $2.3 billion. 

The company said that it is looking at development opportunities beyond Asia, with its subsidiary MelcoLot looking specifically at a boutique casino project in Tbilisi, Georgia and a premium integrated resort project in Spain, close to Barcelona. 

“MelcoLot’s plan to launch a boutique casino project in the Republic of Georgia continued to make headway. Although it has taken longer than originally anticipated to settle the terms of the casino premises lease, that process is now in its final stage.”

“Opportunities from other countries such as Japan have been carefully considered.”