Operator News

China – Studio City reduces loss as Q4 increases slightly

By Phil - 3 March 2022

Melco Resorts’ Studio City casino resort located in Cotai, Macau, generated fourth quarter revenues of US$28.4m, compared to total operating revenues of US$23.7m in the fourth quarter of 2020.

Total operating revenues for the fourth quarter of 2021 were US$28.4m, compared to total operating revenues of US$23.7m in the fourth quarter of 2020. The change was due to the increase in revenues from the provision of gaming related services, partially offset by lower non-gaming revenues. Full year revenues came in at US$106.9m, compared to US$49.2m in the prior year. The increase in total operating revenues was primarily attributable to higher revenues from the provision of gaming related services and non-gaming revenues as a result of a year-over-year increase in inbound tourism in 2021.

Studio City Casino generated gross gaming revenues of US$91.1m and US$87.6m for the fourth quarters of 2021 and 2020, respectively.

The company said:”Our operations remain impacted by travel restrictions and quarantine requirements. The appearance of COVID-19 cases in Macau in late September 2021 led to city-wide mandatory testing, mandatory closure of most entertainment and leisure venues (casinos and gaming areas excluded), and strict travel restrictions and requirements being implemented to enter and exit Macau. Since October 19, 2021, authorities have eased pandemic prevention measures such that travelers no longer require 14-day quarantine on arrival in Zhuhai, and the validity of nucleic acid tests to enter Zhuhai was extended from 24 hours to 7 days. However, health-related precautionary measures remain in place and non-Macau resident individuals who are not residents of Taiwan, Hong Kong, or the PRC continue to be unable to enter Macau, except if they have been in Hong Kong or mainland PRC in the preceding 21 days and are eligible for an exemption application.”

Studio City’s rolling chip volume was US$474.4m in the fourth quarter of 2021 versus US$449.4m in the fourth quarter of 2020. The rolling chip win rate was 1.84 per cent in the fourth quarter of 2021 versus negative 0.13 per cent in the fourth quarter of 2020.

Mass market table games drop decreased to US$253.5m in the fourth quarter of 2021, compared with US$305.6m in the fourth quarter of 2020. The mass market table games hold percentage was 29.6% in the fourth quarter of 2021, compared to 27 per cent in the fourth quarter of 2020.

Gaming machine handle for the fourth quarter of 2021 was US$262.4m, compared with US$257.7m in the fourth quarter of 2020. The gaming machine win rate was 2.8 per cent in the fourth quarter of 2021, compared to 2.2 per cent in the fourth quarter of 2020.

Total gaming taxes and the costs incurred in connection with the on-going operation of Studio City Casino deducted from gross gaming revenues were US$87m and US$91.3m in the fourth quarters of 2021 and 2020, respectively.

Net loss attributable to Studio City International Holdings Limited for the fourth quarter of 2021 was US$53.9m, compared with net loss attributable to Studio City International Holdings Limited of US$61.5m in the fourth quarter of 2020. 

Melco added: “We continue our efforts to complete the construction of Studio City Phase 2 by the deadline set in the land concession of December 27, 2022. This expansion designed by renowned international architecture firm Zaha Hadid Architects will offer approximately 900 additional luxury hotel rooms and suites, an additional indoor/outdoor water park which is expected to be one of the largest in the world, a Cineplex, multiple fine-dining restaurants, and a total of 1,100 square meters of state-of-the-art MICE space. Furthermore, Studio City Phase 2 will also feature a hotel tower under the W Hotel brand in partnership with Marriott International.”