MELCO INT'L DEV(HK:00200)2023-03-31 13:48Financial Performance - Net revenue for the year ended December 31, 2022, was HKD 10.57 billion, a decrease of HKD 5.07 billion or 32.4% compared to HKD 15.64 billion for the year ended December 31, 2021[3]. - Adjusted EBITDA for the year ended December 31, 2022, was a negative HKD 362 million, down from positive HKD 1.54 billion for the year ended December 31, 2021[3]. - The net loss attributable to shareholders for the year ended December 31, 2022, was HKD 9.99 billion, compared to a net loss of HKD 7.94 billion for the year ended December 31, 2021[3]. - Basic loss per share attributable to shareholders for the year ended December 31, 2022, was HKD 3.40, compared to HKD 2.52 for the year ended December 31, 2021[3]. - The company recorded a total comprehensive loss of HKD 10.26 billion for the year ended December 31, 2022, compared to HKD 8.48 billion for the year ended December 31, 2021[6]. - The company reported a loss before tax of HKD 9,981,683 for the year ended December 31, 2022, compared to a loss of HKD 7,899,979 for the year ended December 31, 2021, reflecting an increase in losses of approximately 26.1%[22][23]. - The company reported a loss attributable to owners of the company of HKD 5,113,127 thousand for 2022, compared to a loss of HKD 3,808,968 thousand in 2021, representing an increase in loss of approximately 34.1%[40]. Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to HKD 79.79 billion, an increase from HKD 78.98 billion as of December 31, 2021[7]. - Current assets as of December 31, 2022, totaled HKD 17.30 billion, compared to HKD 15.21 billion as of December 31, 2021[7]. - Total assets as of December 31, 2022, amounted to HKD 97,091,618, an increase from HKD 94,193,277 in 2021, representing a growth of approximately 3.0%[24]. - Total liabilities increased to HKD 83,705,553 in 2022 from HKD 71,725,269 in 2021, reflecting a rise of about 16.6%[24]. - The company's equity decreased to HKD 13,386,065 from HKD 22,468,008, a decline of 40.3%[8]. - The company reported a significant drop in total equity attributable to owners, down to HKD 1,791,305 from HKD 6,862,667, a decrease of 73.9%[8]. Operational Challenges - The impact of COVID-19 continued to significantly affect the company's operations, particularly in Macau due to travel restrictions[11]. - The company faced a 12-day mandatory closure of its casinos in Macau during July 2022, which impacted revenue generation[11]. - The company experienced a significant decrease in gaming tax and license fees, which were HKD 3.83 billion for the year ended December 31, 2022, down from HKD 6.55 billion in the previous year[4]. Strategic Developments - The company is actively expanding its operations in Cyprus with the development of City of Dreams Mediterranean, which is expected to enhance its market presence in Europe[9]. - The group anticipates the opening of the first phase of City of Dreams Mediterranean in the second quarter of 2023, with the second phase expected in the third quarter of 2023[13]. - The Macau government has granted a ten-year gaming concession to Melco Resorts (Macau) Limited, effective from January 1, 2023, to December 31, 2032[15]. Cost Management - The group has implemented cost-cutting measures to mitigate challenges posed by the COVID-19 pandemic, including postponing and reducing capital expenditures[14]. - The company incurred total operating expenses of HKD 4,586,000, with significant costs attributed to depreciation and amortization, share-based compensation, and other operational expenditures[22]. Corporate Governance and Compliance - The audit committee held three meetings during the year to review the financial reporting process and monitor risk management and internal control systems[140]. - The company has established various board committees to maintain high corporate governance standards[138]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of the announcement date[144]. Sustainability and Community Engagement - The company aims to achieve carbon neutrality and zero waste in its resorts by 2030 or earlier[104]. - The company received the "Sustainable Development Award" at the International Gaming Awards in 2022 for its commitment to sustainability[104]. - Over 20,000 volunteer hours were contributed by the company in 2022, participating in more than 2,200 volunteer activities[101]. Future Outlook - Visitor numbers to Macau surged following the easing of social distancing measures on January 8, 2023, indicating a positive outlook for the region[83]. - The company aims to leverage its competitive advantages in the high-end mass market segment to drive overall recovery in the Macau market[84]. - The company plans to enhance its entertainment experiences with a series of exciting projects, including concerts featuring major superstars starting in April 2023[83].