Melco International Development Limited, the majority shareholder of Melco Resorts & Entertainment, has posted a loss of HK$7.06 billion (US$910.9 million) for the first six months of 2020, down from a profit of HK$1.02 billion (US$131.6 million) in 1H19 due to the impact of COVID-19 on its global casinos operations.
Pointing to “unprecedented challenges” presented to global tourism since the start of the year, Melco International revealed a 65.6% decline in net revenues to HK$7.68 billion, recording negative Adjusted EBITDA of HK$890 million (US$114.8 million).
The company, which holds a 56.8% stake in Melco Resorts, did not recommend an interim dividend for the period.
“The COVID-19 pandemic has resulted in a significant impact to the global economy and our operations,” said Chairman and CEO Lawrence Ho.
“While we are currently unable to determine when the recovery of the industry will be, Melco Group is committed to continue our strategic development program, bolstering our pioneering and innovative role in providing premium travel, leisure and entertainment to our shareholders, partners and customers.”
Melco’s current development projects include the Phase 2 expansion of Studio City in Macau as well as the renovation of flagship hotel Nüwa and rebranding of The Countdown Hotel as “Libertine.” Both hotels are at City of Dreams Macau. The company is also developing €550 million City of Dreams Mediterranean in Cyprus.
Melco Resorts & Entertainment Limited last week reported a net loss of US$368.1 million for the three months to 30 June 2020.