Highlights
-- Revenue increased by 27% to HK$1.016 billion
-- Net profit attributable to shareholders was HK$2.691 billion
-- Basic earnings per share was HK$2.19
-- Net asset value attributable to shareholders per share increased by
36% to HK$8.40
-- Proposed final dividend of one HK cent per share
-- Repositioned the Group's US-listed Melco PBL Entertainment (Macau)
Ltd.'s first hotel-cum-casino project Crown Macau to focus on the
buoyant VIP market by appointing Macau-licensed AMA International
Limited as a junket aggregator
-- Crown Macau's market share jumped to 18% in February
-- Development of the City of Dreams remains on track with all
superstructure work on the main podium completed.
-- Through an earn-in arrangement, Melco has become the largest
shareholder of US-listed Elixir Gaming Technologies, Inc. (formerly
VendingData Corporation) and boasts an electronic gaming machine
contract base of 5,530 units
-- Injected PAL into Melco LottVentures Limited (formerly Wafer Systems
Limited), a GEM Board company listed on the Hong Kong Stock Exchange,
to tap the lottery-related business and ventures in China
-- Melco China Resort Investment Limited acquired a large and
exceptional ski portfolio comprising a resort in Harbin of
Heilongjiang Province, three in Jilin Province and another one close
to Beijing
HONG KONG, March 31 /Xinhua-PRNewswire-FirstCall/ -- Melco International Development Limited ("Melco" or the "Group", HKEx Code: 200) today announced its annual results for the year ended December 31, 2007.
For the year under review, revenue increased by 27% to HK$1.016 billion, and net profit attributable to shareholders was HK$2.691 billion. Basic earnings per share was HK$2.19, and net asset value attributable to shareholders per share increased by 36% to HK$8.40. The Board of Directors proposed a final dividend payment of 1 HK cent per ordinary share for the year ended December 31, 2007. Please refer to the Results Announcement on the Stock Exchange website for detailed Financial Review.
Mr. Lawrence Ho, Chairman and CEO of Melco, said, "I am delighted to see Melco's breakthrough achievements in various business sectors. Apart from achieving improved performance in our leisure, gaming and entertainment division, we also saw significant progress in our financial services and technology divisions. With four listed companies specializing in their respective areas, the Melco Group is now a New Generation Asian Conglomerate. Our mission is to maximize shareholder value and at the same time, abide by the highest standard of corporate governance."
Business Highlights
2007 saw significant achievements in our core business of leisure, gaming and entertainment.
Melco PBL Entertainment (Macau) Limited (Nasdaq: MPEL)
The Group's gaming operation is principally conducted through 37.9% NASDAQ listed associate Melco PBL Entertainment (Macau) Limited.
Crown Macau, the Group's first hotel-cum-casino project targeting high rollers, opened on 12 May, 2007. By repositioning the property to focusing on the buoyant VIP market, market share of Crown Macau jumped from under 2% in May 2007 to around 18% in February 2008. In December 2007, AMA International Limited ("AMA"), a junket aggregator, was appointed as a gaming promoter for Crown Macau. For the month of February, the rolling chip volume of Crown Macau exceeded HK$50 billion, making it the largest VIP gaming venue in Macau.
In early 2008, Crown Macau won the "Best Casino Interior Design Award" in the first "International Gaming Awards 2008" held in London, UK. The award recognizes outstanding design in the casino sector. The winner was judged on originality, innovative style, quality of materials and customer friendly environment. Among all the hotels and casinos currently operating in Macau, "Crown Macau" is the first property to receive the "Best Interior Design" honor.
Development of the City of Dreams remains on track. All superstructure work on the main podium is now complete. Upon full completion, City of Dreams will offer guests with four hotel options, i.e. Crown Towers Cotai, Hard Rock Macau, the twin-tower Grand Hyatt Macau, and an apartment hotel, together of which will provide over 2,200 rooms and suites. Each hotel will also offer its own individual spa and leisure facilities. During the year, MPEL successfully negotiated a one-year extension to its conditional agreement to purchase the Macau peninsula site and remains committed to developing the Macau Peninsula project.
In the fourth quarter of 2007, the number of gaming machines in operation at the Mocha Clubs averaged approximately 1,088 in seven locations. The seventh Mocha Club opened in October 2007 at Mocha Square, adding approximately 130 gaming machines. The site was temporarily closed on December 31, 2007 for remedial renovation works and is currently scheduled to resume operations in May 2008. An expansion of the Hotel Royal Mocha outlet was completed and opened on February 5, 2008. The current installed base of Mocha Club gaming machines remains approximately 1,100.
Melco LottVentures Limited (HKEx: 8198)
The Group's Asian lottery business is conducted via Melco LottVentures Limited ("Melco LottVentures", formerly Wafer Systems Limited). Currently, Melco LottVentures manages approximately over 500 venues in China for the Sports Lottery and owns one of the largest lottery sales networks in the PRC, providing a comprehensive range of lottery-related services including venue management services, lottery terminal distribution, wholesale distribution of scratch cards etc. Melco LottVentures also manufactures lottery vending terminals for both China Sports Lottery Administration Centre and China Welfare Lottery Issuance Centre. In March 2008, Melco LottVentures made its first move outside of China to tap the South Korean lottery market through entering into an agreement to acquire the entire issued share capital of KTeMs Co., Ltd, which has an exclusive license to operate national lotto games in Korea.
Melco China Resort Investment Limited
To capitalize on the transition of China into a consumption-led economy, the Group expanded its leisure and entertainment business through the establishment of Melco China Resort Investment Limited ("MCR"), a 45%-owned associate of the Group, in March 2007. Working with the world's top industry experts, MCR has identified the largest and most exceptional portfolio of irreplaceable, existing ski resorts with the best mountains, location advantages, dominant market positions and healthy expansion potential. Initial projects include a resort in Harbin of Heilongjiang Province, three in Jilin Province and another one close to Beijing.
Elixir Gaming Technologies, Inc. (Amex Ticker: EGT)
Through an earn-in arrangement, Melco has become the largest shareholder of US-listed Elixir Gaming Technologies, Inc., a company owned as to approximately 39.9% by the Group. EGT is engaged in the lucrative business of slot machine leasing on a revenue sharing model across various countries in Asia including the Philippines, Cambodia and Vietnam.
Value Convergence Holdings Limited (HKEx: 8101)
The Group's Financial Services division, Value Convergence Holdings Limited ("Value Convergence") delivered encouraging results in its broking and margin financing business. Braced by the buoyant stock market, brokerage commission from dealings in securities improved significantly for the year under review. In addition to general financial advisory transactions, in late September 2007, Value Convergence together with UBS AG acted as joint sponsors for the initial public offering of Hidili Industry International Limited. The IPO was about 670 times subscribed and raised over HK$4 billion.
Awards & Recognitions
During the year, the Group continued to earn international recognition for its outstanding performance and distinctive leadership. It received the Corporate Governance Asia Annual Recognition Award from Corporate Governance Asia and a number of major honors on the 'Asia's Best Managed Companies 2007' list published by the renowned FinanceAsia magazine. Those titles included 'Best Managed Companies', 'Best Corporate Governance', and 'Best Investor Relations', reflecting the Group's standing in the eye of the investment community. Melco will continue to ensure the Group and all its subsidiaries uphold a high level of corporate governance, which it sees as essential to bringing the highest possible returns to shareholders.
"Overall, I am pleased with our achievements in 2007. Melco is well-positioned as one of the dynamic conglomerates in Asia in the new era characterized by consumers eager for new experiences and living life to the fullest. We will continue to capture any opportunities available to us in Macau. The Mainland China market offers enormous potential and vast consumer demand which will no doubt fuel the growth of our lottery operations and ski resort developments. We expect our Group to continue to deliver strong performance and shareholder value in the forthcoming year," Mr. Ho concluded.
To view the results announcement of Melco's 2007 annual results, please visit the following link:
http://www.hkexnews.hk/listedco/listconews/sehk/20080331/LTN20080331146.pdf
To view the archive video webcast of Melco's 2007 annual results' media conference dated 31 March, 2008, please visit the following link (effective before 30 September 2008):
http://events4.broadcastone.net/0200/20080331/default.asp
About Melco International Development Limited
Melco International Development Limited ("Melco") is one of the companies with the longest history in Hong Kong. Founded in 1910, Melco was among the first one hundred companies established in the city and was listed on the Hong Kong Stock Exchange in 1927. Today, under the leadership of its Chairman & CEO Lawrence Ho, Melco is now a dynamic New Generation Asian Conglomerate that leads in leisure and entertainment industry in Asia. Its promising performance and distinctive leadership in the industry are also well recognized worldwide. Melco is a constituent of the MSCI Hong Kong Index, part of the MSCI Standard Index Series and granted the Asia's Best Managed Companies 2007 Award issued by FinanceAsia. For more information, please visit http://www.melco-group.com .
Media Enquiries:
Melco International Development Limited
Maggie Ma
Tel: +852-3151-3767
Email: maggiema@melco-group.com
Fax: +852-3162-3579
Strategic Financial Relations Limited
Mandy Go
Tel: +852-2864-4812
Email: mandy.go@sprg.com.hk
Cindy Lung
Tel: +852-2864-4867
Email: cindy.lung@sprg.com.hk
Angela Ng
Tel: +852-2864-4855
Email: angela.ng@sprg.com.hk
Brenda Liu
Tel: +852-2864-4851
Email: brenda.liu@sprg.com.hk
Fax: +852-2804-2789
