Melco posted huge loss for 2020, remains optimistic for 2021

Melco International Development Limited (Melco) posted a net loss of HKD12.38 billion for the full year of 2020, according to the group’s financial report released on March 31.
The group’s net revenue showed a sharp plunge of 70.2% to HKD13.42 billion. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) registered a negative value of HKD1.2 billion.
Lawrence Ho, Group Chairman and Chief Executive Officer of Melco, commented that Covid-19 and ensuing travel restrictions significantly impacted the group’s financial performance throughout 2020.
Despite the drop in finances, the company and its integrated resorts were experiencing a “moderate recovery” towards the fourth quarter of 2020. This was borne out 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,” Ho said.
Melco is still optimistic about its business prospects for 2021, taking into account the lifting of quarantine restrictions for visitors coming from all mainland cities since February this year, and the rollout of COVID-19 vaccines.
“The Group remains optimistic on the recovery of Macau and expects increased visitation in the near term,” the statement said.
Melco reaffirmed its commitment to continuing development programs in Asia and globally, saying the construction of Studio City Phase 2 is now underway.
Meanwhile, a new water park at Studio City in Cotai is expected to launch on May 22.