MELCO INT'L DEV (00200) opened sharply higher by over 12% following its earnings release. As of press time, the stock was up 12.57% to HK$6.00 with turnover of HK$10.746 million.

On August 29, MELCO INT'L DEV announced its results for the six months ended June 30, 2025. The group recorded net revenue of HK$19.965 billion for the period, representing a 12.38% year-on-year increase. Profit attributable to owners reached HK$351 million, marking a turnaround from losses in the previous year, with basic earnings per share of HK$0.18.

According to the announcement, the turnaround to profitability was primarily attributable to improved performance of casino and hotel operations during the six months ended June 30, 2025, though this improvement was partially offset by increased operating costs due to higher business activities. The increase in net revenue was mainly driven by enhanced performance across both gaming and non-gaming operations.

During the six months ended June 30, 2025, the group recognized an impairment of HK$27.3 million on Mocha casino trademarks (compared to nil for the six months ended June 30, 2024), as three Mocha casinos are expected to cease operations before the end of 2025, while the remaining three Mocha casinos will continue operating until the expiry of Macau's gaming concessions.

Additionally, due to the lack of improvement in performance at Altira Macau, the group recognized an impairment of HK$5 million on certain property, plant and equipment (net of reversal of impairment on intangible assets) for the six months ended June 30, 2025.