Monday past, in a post-trading filing with the Hong Kong Stock Exchange, Melco International Development Limited announced its year on results ending June 30 to be HK$111.1 million (US$14.3 million), a decline of 87.8 percent from last year’s HK$907.6 million, according to macaubusinessdaily.com.
According to the local source, the Lawrence Ho chaired company’s report of an increase of 137.4 percent over the same period last year, HK$89.6 million, of the reported six month earnings of HK$212.6 million, inclusive of the 79.1 percent decrease of the profit attributable to the company’s 34.2 percent holding in Melco Crown Entertainment, approximately HK$220.4 million to HK$1.06 billion last year.
Melco Crown Entertainment’s unaudited results announced last month of its six month year on net revenue ending June 30, of US$1,971.0 million compared to US$2,556.9 million from the same period last year, a substantial decline for this year’s net, as explained in Monday’s filing by Melco International, “The decline in net revenue was primarily attributable to lower 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, as obtained from macaubusinessdaily.com. Lawrence Ho, Melco chairman and CEO added, “In the near future, the gaming industry in Macau anticipates facing strong headwinds with market conditions expected to remain unfavorable,” and, “Further support is expected from the government in line with its strategy to diversify Macau’s economy to non-gaming tourism facilities as part of the city’s evolution into a global tourism and leisure centre.”
Posting an adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of US$2.0 million and US$5.7 million consolidated net income, Entertainment Gaming Asia (EGT) recorded an approximate 65.2 percent increase on the year with revenue of US$15.9 million, attributed to revenue increases in gaming chip, plaque sales and gaming operations for the 64.8 percent subsidiary which enjoys an established presence in the Cambodia and Philippine gaming market slot operations business.
Eyeing a Tbilisi, Georgia boutique casino project in addition to the previously announced integrated resort project in Spain, by subsidiary of the Group, MelcoLot, Melco is actively evaluating development opportunities beyond Asia, according to the Group. Melco International remains positive overall while acknowledging the not so friendly market conditions in Macau’s gaming industry.