Melco International Development’s 2020 success has been boosted by a “moderate” four-quarter turnaround in market levels since COVID-19 and associated closures and travel restrictions seriously hindered its 2020 performance.
This reflects a theme seen in the industry in recent months, with the company also reaffirming its commitment to a global expansion initiative through its Melco Resorts and Entertainment subsidiary.
Cyprus’ City of Dreams Mediterranean
The company says it “remains steadfast in continuing its strategic development program in Asia and globally,” with Studio City phase two extension in the works and Cyprus’ City of Dreams Mediterranean set to open in the summer of 2022, despite delays.
Melco International’s company chairman and CEO, Lawrence Ho, explained: “COVID-19 and the subsequent travel restrictions significantly impacted our operating and financial performance throughout the year of 2020.
“Despite these challenges, we can see our integrated resorts experiencing a moderate recovery in business levels towards the fourth quarter of 2020. This was substantiated by the positive property EBITDA for the Macau operations, as well as our global operations as a whole in the fourth quarter of the year.
“While impacted by COVID-19, we remain steadfast in continuing our strategic development program in Asia and globally. In Macau, the construction of our next major project, Studio City phase two, is ongoing.
“Upon completion, it will offer approximately 900 luxury rooms and suites, thus augmenting Studio City’s hotel room inventory by approximately 60 per cent.
“In addition, the non-gaming attractions, including one of the world’s largest indoor/outdoor water parks, a cineplex, fine-dining restaurants, and state-of-the-art MICE space, will ensure a wider demographic reach.”
Melco International Development announced a 70.2 percent decrease in net sales to HK$13.42 billion (£1.25 billion) in 2020, with a loss after tax of HK$12.38 billion (£1.15 billion) and a negative adjusted EBITDA of HK$1.2 billion (£112 million).
Positive of Macau’s rebound
Despite being significantly impacted by the pandemic’s drastic decrease in inbound tourism and partial closing of casinos, the organisation says it is positive about Macau’s rebound as visitation rises and the global vaccine roll-out progresses.
Ho continued: “2020 was certainly a very difficult year worldwide, however we are confident that Macau will achieve a sooner rather than later turnaround, as it remains the most attractive integrated resort market in the world.
“In respect of the group, we trust that with the strengthening of our financial position through recent capital market transactions, we can overcome the adversities which may transpire in the near term, while concurrently investing for the future.
“Meanwhile, our commitment to employee development and community support also remains as the backbone of our corporate development, and we are firmly driven by our focus on sustainability goals, with the aim to become carbon neutral and zero waste by 2030 as part of our business strategy.”