Melco Int’l revenue soars after taking control of Melco Resorts

Asian casino operator Melco International Development saw its revenue nearly quadruple in the first half of 2017 on the strength of Macau’s resurgence.

On Thursday, Melco informed the Hong Kong Stock Exchange that its revenue in the six months ending June 30 shot up 262% to HKD 20.1b (US $2.56b), while adjusted earnings rose 298.5% to HKD 4.7b. However, profit fell 98.4% to HKD 164.6m.

Melco said the profit slide was the result of a major one-off gain in H1 2016 from the disposal of previously held interest in an associate. There’s also the bill from Melco increasing its stake in the Melco Crown Entertainment joint venture (now known as Melco Resorts & Entertainment) from 37.9% at the end of 2016 to 51.3% this spring.

Melco began increasing its stake in Melco Crown a year ago as its former joint venture partner, Australia’s Crown Resorts, undertook a dramatic restructuring to refocus its attentions on its domestic resorts. Melco’s increased stake was perfectly timed, coming just as Macau began its return to growth after 26 months of consecutive revenue declines.