Melco International Development Ltd
HKEX:200
Melco International Development Ltd
Melco International Development Ltd. operates as an investment holding company, which engages in the provision of entertainment and property development services. The firm operates through two segments. Gaming, Leisure and Entertainment Segment is engaged in the provision of catering, entertainment and related services, lottery businesses, the participation and manufacture of electronic gaming machines, as well as the distribution of gaming chips and plaques. Property and Other Investments Segment is mainly engaged in property investment and available-for-sale investment, among others.
Melco International Development Ltd. operates as an investment holding company, which engages in the provision of entertainment and property development services. The firm operates through two segments. Gaming, Leisure and Entertainment Segment is engaged in the provision of catering, entertainment and related services, lottery businesses, the participation and manufacture of electronic gaming machines, as well as the distribution of gaming chips and plaques. Property and Other Investments Segment is mainly engaged in property investment and available-for-sale investment, among others.
Macau Recovery: Macau properties saw strong performance in early 2023, with Chinese New Year EBITDA reaching $6 million a day and daily mass gaming volumes in February in line with January, exceeding 2019 levels.
EBITDA & Cost Control: Q4 2022 group-wide property EBITDA was negative $7 million, but full-year EBITDA was just above breakeven despite COVID challenges, reflecting effective cost management.
Operational Efficiency: The company has permanently reduced headcount and improved operating leverage, expecting 10% fewer employees at end-2023 versus pre-pandemic while expanding with Studio City Phase 2.
Liquidity & Debt: Melco ended 2022 with nearly $2 billion in cash and has since reduced leverage by roughly $500 million, focusing on deleveraging and does not foresee equity offerings soon.
CapEx Plans: 2023 capital expenditures include $60–65 million in Cyprus, $75–80 million for Studio City Phase 2, and $150–160 million for maintenance.
Mass Market Recovery: Mass gaming volumes in Macau are running at about 70% of 2019 levels, with management optimistic about further improvement.
