The Studio City Casino in Macau has seen a return to profitability in the third quarter of 2023, largely due to a surge in both gaming and non-gaming segments. The integrated resort, operated by Melco International Holdings, reported increased revenue in part thanks to the opening of Studio City Phase 2 in April. This expansion included the addition of the Studio City Indoor Water Park and the construction of a new hotel called Epic Tower.

Macau as a whole has experienced a boom in entertainment and tourism revenues following the relaxation of Covid-19 restrictions in January 2023. While there was a six-month low recorded in September, the region saw post-pandemic high figures in August.

For the three months ending September 30, Studio City reported total operating revenues of $137.6 million, a stark contrast to a loss of $2.8 million in the same quarter of 2022. The resort’s gross gaming revenues for the third quarter of 2023 were reported at $256.3 million, compared to $20.6 million the previous year.

Additionally, Studio City saw a significant increase in its gaming volume, with the rolling chip volume soaring to $713.6 million from $42.1 million in Q3 of 2022. The resort also experienced notable increases in revenue from its casino contract and non-gaming revenues.

Furthermore, Studio City’s operating costs and expenses in the third quarter doubled from the previous year. However, the resort was able to generate adjusted EBITDA of $56.3 million, compared with negative adjusted EBITDA of $39.5 million in 2022.

Melco Resorts & Entertainment, the operator of Studio City, also moved closer to turning a net profit in Q3. The company reported a 320.6% rise in revenue, reaching $1.02 billion, up from $241.8 million in the previous year. Casino revenue was the primary driver of this growth, jumping 346.2% to $812.1 million in the third quarter.

Overall, the return to profitability for Studio City and the significant financial improvements for Melco Resorts & Entertainment signals a positive outlook for the integrated resort and the gaming industry in Macau.

By admin