Melco International Development Ltd. (200), controlled by billionaire Stanley Ho’s son Lawrence, narrowed losses in 2009 after making deeper cuts in costs and expenses.
The gaming, property and technology group posted a loss of HK$1.45 billion ($186.7 million), or HK$1.18 a share, compared with HK$2.36 billion, or HK$1.92 a share, a year ago, according to a statement filed to Hong Kong’s stock exchange today. That compared with a mean loss estimate of HK$699.3 million from four analysts surveyed by Bloomberg. Sales rose 2.7 percent to HK$709.6 million.
“The Group implemented several cost rationalization initiatives which have effectively improved the operational efficiency of its businesses,” the company said. “ With City of Dream’s performance in mass market improving significantly and Altira Macau showing strong return of rolling chip levels under a more profitable commission environment, our key businesses are on a positive trajectory.”
Melco International had faced higher costs from the June opening of Melco Crown’s City of Dreams casino on Macau’s Cotai Strip, after the smaller Crown Macau was renamed Altira in April. City of Dreams’ contribution to the company’s results “were restricted” as its offerings, which cater to the mass market, weren’t fully operational last year, according to the statement.
The shares fell 1.6 percent to close at HK$3.64, the lowest in a week. The stock has gained 1.7 percent this year compared with a 2.3 percent decline in the benchmark Hang Seng Index.
Melco International’s unallocated corporate expenses fell 37 percent last year to HK$100 million, the statement said.
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