Melco International Faces Significant Asset Impairment at Studio City

Melco International ( (HK:0200) ) has issued an update.

Melco International Development Limited announced an expected asset impairment ranging from HK$838 million to HK$1,024 million related to its Studio City resort in Macau, which will increase the company’s net loss for 2024 by approximately HK$774 million to HK$956 million. Despite this impairment, which is a non-cash item, the company’s cash flow, operations, and liquidity remain unaffected. The impairment is attributed to the longer-than-expected ramp-up of operations following the opening of Studio City Phase 2, and it highlights the challenges faced by the company in aligning with Hong Kong Financial Reporting Standards.

More about Melco International

Melco International Development Limited is a company incorporated in Hong Kong, operating in the entertainment and leisure industry. The company, along with its subsidiaries, focuses on developing and managing integrated resorts, with a significant presence in Macau, particularly through its cinematically-themed Studio City resort.

YTD Price Performance: -2.50%

Average Trading Volume: 2,945

Technical Sentiment Consensus Rating: Strong Buy

Current Market Cap: $803.3M

For detailed information about 0200 stock, go to TipRanks’ Stock Analysis page.