Hong Kong: Melco Int. Development’s profit falls in 2007

1 April 2008

Hong Kong, China, 1 April – Melco International Development, the holding company controlled by Lawrence Ho, said Monday in Hong Kong that profit for 2007 had fallen by 5 percent against 2006 due to lower extraordinary income.

In the 12-months ended on 31 December 2007, the Hong Kong-listed company posted net profit of 2.69 billion Hong Kong dollars (US$346 million) against 2.84 billion Hong Kong dollars in 2006.

The company, which is controlled by the son of Macau gaming and gambling magnate, Stanley Ho, proposed a final dividend of 1 Hong Kong cent per share, which was the same as in 2006.

In relation to its 37.85 percent stake in Melco PBL Entertainment Macau Ltd. (MPEL), which has a gaming sub-concession in Macau, the holding company posted a loss of 525.59 million Hong Kong dollars.

Melco International Development also posted a loss of 144.58 million Hong Kong dollars for another joint venture set up in July with Publishing and Broadcasting Ltd. Owned by Australia’s James Packer’s company Crown Ltd, or re-buy shares in Melco PBL.

However, the losses posted by all but one of the holding company’s subsidiaries were wiped out by extraordinary income from stock transactions.

In December 2006, Melco PBL’s IPO provided extraordinary income of 3.1 billion Hong Kong dollars, whilst in 2007 the company posted extraordinary income of just 2.77 billion Hong Kong dollars. (macauhub)