2020-04-27 12:23Financial Performance - Net revenue for Melco International Development Limited increased by 10.5% to HKD 45 billion for the year ended December 31, 2019, compared to HKD 40.7 billion in 2018[19] - Adjusted EBITDA rose by 15.1% to HKD 12.5 billion for the same period, up from HKD 10.9 billion in 2018[19] - The net profit for the year was HKD 1.8 billion, reflecting a 10.5% increase from HKD 1.6 billion in the previous year[19] - The company reported a basic earnings per share of HKD 0.46, compared to HKD 0.34 for the year ended December 31, 2018[19] - Net revenue increased by 10.5% to HKD 45 billion, with profit growth of 10.5% to HKD 1.8 billion, and adjusted EBITDA growth of 15.1% to HKD 12.5 billion[34] - The company successfully increased the revenue from mass gaming tables by approximately 17% despite a declining market[34] - Market share expanded by approximately 180 basis points, reaching 16%[34] - The company achieved record highs in net win adjusted EBITDA during the fourth quarter, contributing to a strong annual performance[34] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[110] - Total operating revenue for Melco Resorts increased to $5,740,000,000 in 2019 from $5,190,000,000 in 2018, representing a growth of 10.6%[78] Expansion and Development - The company is focusing on the Japanese market with a "Yokohama Priority" strategy to develop a world-class integrated resort[11] - Melco International Development Limited is actively expanding its operations in Cyprus, with ongoing construction of City of Dreams Mediterranean and growth in its temporary and satellite casinos[19] - The company is focusing on developing integrated resorts in Japan, with a priority strategy announced for Yokohama[34] - Construction of the City of Dreams Mediterranean in Cyprus is progressing well, which will become the largest integrated resort in Europe upon completion[34] - The company is expanding the Morpheus project in Macau, adding approximately 900 luxury hotel rooms and suites, a large indoor water park, a cineplex, and high-end dining options[37] - The City of Dreams Mediterranean project in Cyprus continues to progress, with the opening of the Ayia Napa satellite casino in July 2019 and the Paphos satellite casino in February 2020[37] - The company is actively expanding its business outside Asia to achieve its vision of becoming a leading integrated resort operator globally[34] - The company is focused on core investment projects in Macau, Manila, Cyprus, and Japan, while terminating plans to acquire additional shares in Crown Resorts in Australia[37] Sustainability and Corporate Social Responsibility - The company has committed over HKD 133 million in charitable donations and contributions in 2019, with 27,282 employees participating in corporate social responsibility activities[22] - The company aims to enhance its sustainable development strategy, focusing on reducing its carbon footprint while providing exceptional service[12] - The company has made significant progress in carbon neutrality, energy conservation, and waste reduction across its global properties[23] - The company has committed to achieving carbon neutrality and zero waste by 2030 as part of its new sustainability strategy launched in 2019[58] - The company achieved a 16% reduction in single-use plastic consumption by removing all disposable plastic bottles and straws from operations[182] - In 2019, the company increased its sustainable seafood procurement in Macau by 15% and conducted a workshop for 30 local SMEs[184] - The company received the "Best ESG Performance Award - Main Board Large Market Capitalization" at the 2019 BDO ESG Awards[182] - The company was recognized as a climate change leader by CDP with an "A-" rating, marking its entry into the recognized leaders[182] Corporate Governance - The company maintains a commitment to high levels of corporate governance, focusing on responsible decision-making and improving transparency to shareholders[125] - The management team includes experienced professionals such as Geoffrey Stuart Davis, who has been the Chief Financial Officer since December 2017, overseeing financial and treasury functions[121] - The independent non-executive directors bring diverse expertise, with backgrounds in finance, law, and media, contributing to the company's governance and strategic direction[118][120][123] - The company has established its own corporate governance code, which aligns with the principles and best practices outlined in the Hong Kong Stock Exchange's corporate governance code[126] - The company has a written code of business conduct and ethics to ensure the highest standards of conduct among all employees[127] - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors, meeting the requirement of independent directors exceeding one-third of the board[132] - The company has a clear delineation of responsibilities between the chairman and the CEO, with the board retaining ultimate responsibility for daily management[131] - The company has a structured process for shareholders to nominate candidates for the board of directors during the annual general meeting[173] Employee Engagement and Development - The group emphasizes the importance of talent and aims to create a supportive work environment, with a focus on diversity and equal opportunities for all employees[106] - The group provides training to enhance employee skills necessary for business development, aligning training goals with desired outcomes[108] - The total number of employees increased to 23,261 as of December 31, 2019, up from 22,228 in 2018, with total employee costs reaching HKD 7,590,400,000[105] - The company has a female representation of approximately 38% in senior leadership and about 40% in general management teams[183] - Approximately 80% of the company's global employees expressed pride in working for the organization according to a survey[183] Risk Management - The company has established a risk management policy to oversee internal controls and manage significant business risks, including ESG-related risks[159] - The risk management framework combines top-down strategies and bottom-up business processes, with a dedicated risk management team reporting to the executive committee[160] - The internal audit department reports directly to the audit committee, providing useful information and recommendations to enhance the effectiveness of the internal control system[163] - The company is committed to ensuring that disclosed information is not misleading or false, adhering to the Securities and Futures Ordinance and listing rules[169] Shareholder Relations - The company encourages shareholder participation in the annual general meeting, providing opportunities for questions and discussions with board members[176] - Shareholders holding at least 5% of total voting rights can request a special meeting, and if the board does not convene within 21 days, they may call the meeting themselves[171] - The company has a communication policy in place to respond to inquiries from shareholders and investors through various channels[177] - The company plans to distribute dividends equivalent to approximately 20% of the annual consolidated net income attributable to shareholders[188]