GGRAsia – Melco International profit slips 7 pct in 2014

Melco International profit slips 7 pct in 2014

Mar 30, 2015 Newsdesk Latest News, Macau, Philippines, Top of the deck

Profit attributable to the owners of Asian casino investor Melco International Development Ltd fell 6.8 percent in 2014, to approximately HKD1.49 billion (US$192.2 million) from nearly HKD1.60 billion a year earlier.

The firm gave the news in a filing to the Hong Kong Stock Exchange on Friday.

It has a joint venture – via Melco Crown Entertainment Ltd – in the Macau and Philippines casino markets with Australia’s Crown Resorts Ltd. Melco International has a 34.23 percent stake in Melco Crown.

Melco International also has a separate investment in Cambodian casino operator and equipment maker Entertainment Gaming Asia Inc (EGT), and supplies technology to the mainland China lottery market.

Melco International’s 2014 results included a “post-acquisition loss of approximately HKD10,031,000 attributable to the business generated by EGT,” said the parent.

On November 26, Nasdaq-listed EGT became a subsidiary of the group through the subscription of shares under an EGT rights issue.

During the year to December 31, revenue from the lottery services provider MelcoLot Ltd – in which the group holds a 40.65 percent equity interest – declined by 17 percent to HKD45.3 million “attributable to a low margin strategy in the lottery terminals and parts distribution business to maintain market share,” said Melco International.

The parent, chaired by Lawrence Ho Yau Lung, reported basic earnings per share attributable to owners of the company of HKD0.96 for the year ended December 31, compared to basic earnings per share attributable to the owners amounting to HKD1.04 for 2013.

The board has recommended the payment of a final dividend for 2014 of HKD0.075 per share, approximately equal to HKD116.0 million.

Melco International said that – together with a paid interim dividend of HKD0.116 cents per share, amounting to HKD181.2 million – all dividends for the year amounted to HKD0.191 per share, or HKD297.2 million.

The figure represented “approximately 20 percent of the profit attributable to the owners of the company for the year”.