Gaming | Melco’s 2014 profit decreases

Melco International Development Limited has announced that its total profit in 2014 reached HKD1.49 billion, compared to the HKD1.60 billion profit recorded in the previous year. This represents a 6.8-percent decrease.
The company said in a statement that it has “maintained steady growth with remarkable progress made on its exciting development pipeline in Macau and overseas.”
On Friday, the group announced its 2014 annual results in a filing to the Hong Kong Stock Exchange.
It revealed that core gaming and Macau business units under the group’s major associate, Melco Crown Entertainment Limited, “delivered a stable financial performance despite the challenges encountered.” Net revenue and adjusted property EBITDA amounted to USD4.8 billion and USD1,285 billion respectively.
The group added that Studio City, its Hollywood-inspired gaming and entertainment complex, which is currently under development at the Cotai Strip, remains on track to open in the third quarter of this year. Melco’s statement further noted that a special short movie based on a Studio City storyline, called “The Audition,” has been produced in collaboration with a number of Hollywood stars.
Melco recalled that the opening of City of Dreams Manila marked another milestone for the company’s expansion in Asia.
The group is reportedly currently pursuing other projects, including a gaming and resort development project. This project is expected to open in Russia’s Primorye region in 2015. It is also pursuing casino projects in Barcelona, and in the Republic of Georgia.
The chairman and CEO of Melco, Lawrence Ho, said that, “Melco group has achieved stable growth despite the challenging market conditions in 2014 (…) the satisfactory results achieved in the financial year of 2014 have been primarily driven by the success of the premium mass market table games business at City of Dreams, operated under our key associate Melco Crown Entertainment, while we have also gained greater market shares in mass market and VIP segments.”
Mr Ho added that, “looking ahead, we are positive about the overall long-term outlook of the gaming, leisure and entertainment markets in Macau (…) We are positive about development prospects in the long-term, as it is bound to become more diversified.”