In 2024, Melco International Development Limited, the Hong Kong Stock Exchange-listed parent of Macau-based Melco Resorts & Entertainment, reported a significant reduction in its annual financial losses. The company detailed a loss of HK$784.6 million ($100.9 million), marking a notable 55% decrease from the previous year.

Enhanced operational performance:

This financial improvement was supported by a robust 22.5% increase in net revenues, which soared to HK$36.17 billion ($4.65 billion). The revenue boost is largely attributed to a vibrant recovery in Macau’s inbound tourism and the successful ramp-up of operations at Studio City Phase 2 and City of Dreams Mediterranean, both inaugurated in 2023.

As stated in the company’s press release (pdf), casino revenues witnessed a substantial rise of 22.2%, reaching HK$29.43 billion ($3.78 billion). Additionally, room revenues increased by 24.5%, amounting to HK$3.29 billion ($422.96 million), while food and beverage (F&B) sales surged by 36.4% to HK$2.23 billion ($286.7 million). Even with heavy investments in entertainment and retail, these sectors saw a 4.7% annual increase, totaling HK$1.21 billion ($272.55 million).

Despite these gains, the year also saw challenges, such as a prolonged ramp-up in operations post the opening of Studio City Phase 2, leading to an impairment loss of HK$931.3 million ($119.73 million). Furthermore, Melco’s Taipa property, Altira Macau, faced net impairments amounting to HK$1.11 billion ($142.7 million) due to ongoing market disruptions and a previous halt in collaborations with junket promoters.

Strategic insights from leadership:

Lawrence Ho, Chairman and CEO of Melco International, commented on the financial outcomes stating, “In 2024, we pursued strategic expansion and refinement to invest in a brighter future. I am pleased to report that our efforts are beginning to yield results, marking a meaningful market gain and we expect this positive momentum to continue into 2025.”

He also highlighted the company’s approach to enhancing the premium experience in Macau to cater to the growing demands of the middle class through innovative investments.

The performance of City of Dreams Manila remained strong throughout the year, bolstered by increased international tourism and governmental support for tourism development. In Cyprus, operational upgrades at City of Dreams Mediterranean and satellite casinos contributed to measurable performance improvements.

Looking ahead, Melco is set to open its new casino in City of Dreams Sri Lanka in the third quarter of 2025. This project is seen as a “capital-light investment with an attractive return profile,” according to Ho, allowing for an expansion of the City of Dreams brand and a broader customer base.

Melco’s forward-looking initiatives are not only about expanding its geographical footprint but also enhancing its commitment to sustainability and responsible gaming. The company plans to integrate more eco-friendly practices and technologies across its operations to reduce its environmental impact. Moreover, Melco is set to launch several community engagement programs that aim to promote responsible gambling practices among its patrons. These programs are designed to support local communities and foster a more sustainable and ethically mindful tourism and gaming industry. This holistic approach reflects Melco’s dedication to corporate responsibility and its ambition to lead by example in the global gaming sector.