Melco maintains Japanese pledge as Cyprus Casinos continues growth

Melco Resorts and Entertainment remains committed to achieving previously expressed expansion across Asia and Europe, as the firm publishes a 2019 fourth quarter and full year report.

Revenue for the final period of the prior year grew three per cent to $1.45bn (2018: $1.41bn), primarily attributable to better performance in the mass market table games segment. 

On a full-year basis revenue swelled to $5.74bn, a 10.6 per cent rise from $5.19, due to the aforementioned table games performance.

As construction on the firm’s Studio City entity continues to progress, Melco has lauded its developments in Cyprus, which saw the firm acquire a 75 per cent interest in ICR Cyprus Holdings Limited, from its parent company, Melco International Development.

With construction of its €550m City of Dreams Mediterranean continuing, the firm currently operates one temporary and three satellite casinos, with a fourth scheduled to open in the coming months.

Revenues across Melco’s Cyprus Casinos properties grew 58.3 per cent to $24.7m (2018: $15.6m), with adjusted EBITDA significantly increasing from $8.6m to $2.3m.

Upon the opening of integrated resort in 2021, the company will also continue to operate the four satellite casinos while operation of the temporary property will cease.

Focusing attention elsewhere, Lawrence Ho, chairman and CEO of Melco, said of the firm’s Japanese progression: “Japan continues to be a core focus for us. In September 2019, we announced our ‘Yokohama First’ policy as we focus our Japan team on bringing to Yokohama the best IR the world has ever seen. In December 2019, we submitted our response for the Yokohama RFC.

“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Yokohama realise the vision of developing a world-leading IR with a unique, Japanese touch.”

Operating income across the group decreased 15 per cent during Q4 to $173.4m (2018: $203.3m), however, full-year results grew 22 per cent from $613.4m to $747.7m.

Adjusted EBITDA also fell during the quarter to $409.8m, a four per cent drop from $427.5m, with FY figures growing 13.4 per cent from $1.49bn to $1.69bn.

Ho commented: “During the fourth quarter of 2019, despite macro headwinds and the events in Hong Kong, mass gaming operations at all of Melco’s integrated resorts have remained robust, which drove group-wide mass table games revenue to expand approximately 12 per cent year-over-year to an all-time-record-high of US$850m. 

Adding: “Melco continues to prioritise sustainability in its operations. In March 2019, Melco became the first and only hospitality group and integrated resort signatory of the New Plastics Economy Global Commitment, a global initiative to tackle plastic waste and pollution, led by the Ellen MacArthur Foundation in collaboration with the UN Environment. 

“In December 2019, Melco became the first integrated resort and hotel operator in the Macau SAR and Hong Kong SAR to receive ISO 41001:2018 for its efforts in facilities management systems (FMS). Melco has also attained ISO 50001:2018 for effective energy management systems (EnMS) and was recognised by global environmental disclosure system CDP as one of China’s leading companies in sustainability.”