Melco International expects to record impairment of up to US$128.6m

The asset impairment is linked to Studio City.

Hong Kong.- Melco International Development has announced that it expects to record a non-cash impairment on certain assets from about HK$838m (US$107.8m) to HK$1bn (US$128.6m). The impairment is linked to Studio City, an integrated resort in Cotai, Macau, and will increase the net loss for the year ended December 31, 2024, by HK$774m to HK$956m (US$122.5m).

The company expects to record a net loss of between HK$1.5bn (US$192.2m) and HK$1.7bn (US$218.1m) for 2024, compared to HK$3.4bn (US$436.5m) in the previous year.

The statement reads: “It is important to note that the anticipated impairment is classified as a non-cash item, meaning it will not affect the group’s cash flow, operations, or overall liquidity. The estimated impairment results primarily from the long-term discounted cash flow valuation method required under HKFRS given the longer than expected ramp up of operations following the opening of Studio City Phase II.”

The company said no such impairment is required under United States Generally Accepted Accounting Principles as impairment testing is conducted based on long-term undiscounted cash flows, so no impairment was recorded in the fourth-quarter and full-year financial statements of Melco Resorts, published on February 27.

The asset impairment is linked to Studio City. Hong Kong.- Melco International Development has announced that it expects to record a non-cash impairment on certain assets from about HK$838m (US$107.8m)…