Melco International Development announced in its annual results that it lost HK$12.38 billion (US$1.59 billion) last year.
The HK$12.38 billion loss after tax follows a HK$1.77 billion profit in 2019. The group’s adjusted EBITDA was HK$12.50 billion in 2019. Though, it fell to HK$1.20 billion for the fiscal year ending December 2020.
As a result of the pandemic, the company’s net sales fell by 70% to HK$13.42 billion. It referred to the drop to “softer performance” in casinos and hospitality due to lockdowns.
Melco International suffered as a result of government decisions that resulted in shutdowns, limitations, and travel bans across Asia.
The pandemic has also impacted the group’s resort renters and business partners. It will “increase the risk of these companies defaulting on their contract terms with the group,” according to the company.
Lawrence Yau Lung Ho, Chairman, and CEO said, “Although COVID-19 has brought a great challenge, we will not succumb to its headwinds. We are committed to achieving our asset enhancement objectives.”
“It is impossible to foresee how and when the pandemic will end. Even so, we remain optimistic that, with the global rollout of vaccines, the worst is now over.
“We will tackle any adversities that will arise in the short term while also planning for the future,” he concluded.