MELCO INT'L DEV(00200)2024-09-25 04:16Financial Performance - The group's net revenue for the six months ended June 30, 2024, was HKD 17,770,000,000, an increase of 36.3% compared to HKD 13,040,000,000 for the same period in 2023[4]. - The group reported a loss of HKD 443,600,000 for the six months ended June 30, 2024, significantly reduced from a loss of HKD 1,400,000,000 in the same period of 2023[4]. - The company's net revenue increased by 36.3% to HKD 17,765.6 million for the six months ended June 30, 2024, compared to HKD 13,038.4 million in the same period of 2023[25]. - Adjusted EBITDA rose by 40.2% to HKD 4,489.3 million for the six months ended June 30, 2024, from HKD 3,202.6 million in the previous year[27]. - The company reported a loss attributable to shareholders of HKD 253.2 million, a 65.5% improvement from a loss of HKD 733.2 million in the same period last year[28]. - The total comprehensive loss for the period was HKD 579,122,000, compared to a loss of HKD 1,556,816,000 in the previous year, showing an improvement[61]. - Basic and diluted loss per share for the period was HKD 0.17, compared to HKD 0.49 in the same period last year[61]. Operational Highlights - The opening of the Dolby Cinema at Studio City in June 2024 marks a significant investment in enhancing entertainment experiences[3]. - The group announced a strategic partnership with John Keells Holdings PLC to establish the first integrated resort in Sri Lanka, City of Dreams Sri Lanka, with a 20-year gaming license granted[3]. - The average operation for City of Dreams Manila included approximately 430 gaming tables and 624 gaming machines in the first half of 2024[5]. - Mocha Entertainment, the largest non-casino electronic gaming operation in Macau, averaged about 905 gaming machines in the first half of 2024[8]. - The average operation for Studio City included approximately 249 gaming tables and 656 gaming machines in the first half of 2024[6]. - City of Dreams Mediterranean opened in July 2023, becoming the largest integrated resort in Europe with 500 rooms and over 8,000 square meters of meeting space[10]. - In the first half of 2024, the average operation of gaming facilities in Cyprus included approximately 103 tables and 890 slot machines, while City of Dreams Mediterranean operated about 99 tables and 730 slot machines[10]. Guest Experience and Investments - The group continues to enhance guest experiences in Macau through significant investments in staff and property optimization[3]. - The flagship integrated resort, City of Dreams, aims to attract high-end travelers and is set to feature the return of the acclaimed show "The House of Dancing Water" in early 2025[5]. - The company is investing in diverse cultural tourism projects to support Macau's "1+4" diversification strategy, enhancing its position as a dynamic entertainment hub[12]. - The opening of the Marcos Baghdatis Tennis Academy at City of Dreams Mediterranean aims to provide a top-tier tennis experience, contributing to property optimization[11]. Tourism and Visitor Trends - Visitor numbers to Macau increased by 43.6% compared to the same period in 2023, reaching 82.4% of pre-pandemic levels from the first half of 2019[11]. - The Philippines saw a 13.7% increase in foreign tourist arrivals in the first half of 2024 compared to the previous year, indicating strong demand in the tourism market[12]. - Cyprus recorded over 1.65 million inbound tourists in the first half of 2024, a 2.4% increase from the same period in 2023[12]. Awards and Recognition - The company received multiple awards for excellence in corporate governance and investor relations, including being named "Best Investor Relations Company" for the 13th time in the Asia Excellence Awards[15]. - The group received 16 five-star honors in the 2024 Forbes Travel Guide, maintaining its leading position among integrated resort operators in Macau and Asia[16]. - The group’s properties, including City of Dreams and Studio City, won a total of eight stars in the 2024 Hong Kong and Macau Michelin Guide, with the Cantonese restaurant Yu Long Xuan receiving three Michelin stars for six consecutive years[17]. - The group was awarded the "2024 Best Learning Organization Award" by the Association for Talent Development (ATD) for the third consecutive year, recognizing its commitment to talent development[18]. Community Engagement and Sustainability - The group launched the "Small Dreams, Big Love" initiative to support local communities, including food donations of 500 food baskets to the Macau Caritas[20]. - The group organized the first "Business Exchange" event to support local SMEs, providing a platform for marketing and sales exposure[21]. - The "RISE" sustainability strategy led to the group receiving the Asia Sustainability Award for its commitment to integrating sustainability into business operations[22]. - City of Dreams Mediterranean won the "International Best Sustainable Business Development Project" and "European Best Sustainable Business Development Project" awards in 2024[22]. Financial Position and Liabilities - Total assets decreased by 3.3% to HKD 86,495.6 million as of June 30, 2024, compared to HKD 89,411.4 million at the end of 2023[24]. - Total liabilities also decreased by 3.0% to HKD 76,650.2 million as of June 30, 2024, from HKD 79,038.2 million[24]. - The company's cash and bank balances amounted to HKD 9,199,700,000, a decrease from HKD 10,765,500,000 as of December 31, 2023[45]. - The total available undrawn borrowing capacity as of June 30, 2024, was HKD 15,220,000,000, significantly increased from HKD 8,250,000,000 as of December 31, 2023[45]. - The capital-to-debt ratio as of June 30, 2024, was 71.2%, slightly up from 71.1% as of December 31, 2023[48]. - The group repaid a total of HKD 1,170,000,000 in principal and accrued interest under a credit facility agreement on March 28, 2024[46]. Employee and Operational Costs - As of June 30, 2024, the total number of employees in the group was 20,686, an increase from 19,676 as of June 30, 2023[55]. - Employee costs for the six months ended June 30, 2024, amounted to HKD 3,324,400,000, compared to HKD 2,991,700,000 for the same period in 2023, representing an increase of approximately 11.1%[55]. - Total operating costs and expenses for the six months ended June 30, 2024, were HKD 15,945,436,000, compared to HKD 12,403,304,000 in 2023, indicating an increase of about 28.5%[60]. Shareholder Information - The company has not declared an interim dividend for the six months ended June 30, 2024, consistent with the decision made in May 2020 to suspend the interim dividend plan[90]. - The total number of issued shares as of June 30, 2024, is 1,516,683,755 shares[167]. - Major shareholders holding 5% or more of the issued shares are recorded as of June 30, 2024[165]. Corporate Governance - The company has established various board committees to maintain high corporate governance standards[170]. - The company has complied with the corporate governance code as of June 30, 2024, except for certain deviations[170]. - Deloitte has been appointed as the new auditor of the company effective June 28, 2024, following the resignation of Ernst & Young[175].