Studio City Casino reports positive operating profit for the first time since Covid in Q3

Macau’s Studio City Casino saw its profits rebound in the third quarter of 2023, thanks to a surge in gaming and non-gaming segments. The Melco-operated integrated resort, Studio City International Holdings, experienced an increase in revenue compared to the same period the previous year, partially due to the opening of Studio City Phase 2 earlier in the year. The new features, such as the Studio City Indoor Water Park and the Epic Tower hotel construction, contributed to the boost in takings.

The relaxation of COVID-19 related restrictions in Macau since January 2023 has also led to a surge in entertainment and tourism revenues. Despite a six-month low in September, the region saw high figures in August post-pandemic.

For the three months ending on September 30, Studio City’s total operating revenues amounted to $137.6 million, marking a significant improvement from the $2.8 million loss in the same period in 2022. The resort recorded significant increases in gross gaming revenues, rolling chip volume, gaming machine handle, and mass market table games drop, all contributing to the growth in total operating revenues.

Additionally, Studio City’s non-gaming revenues also saw a significant increase, totaling $89.0 million compared to $15.4 million in the same period in 2022. This increase in non-gaming revenues played a role in shrinking the losses for the resort in the third quarter.

Melco Resorts & Entertainment, the operator of Studio City, also reported a substantial rise in revenue, with a revenue increase of 320.6% in the third quarter of 2023. The casino was a major contributor to this growth, with revenue in the casino segment jumping 346.2% to $812.1 million.

Overall, Studio City saw a turnaround in its financial performance in the third quarter of 2023, with operating income reaching $3.2 million, compared to an operating loss of $72.5 million in the same period in 2022. The increase in revenue from gaming and non-gaming segments played a significant role in the improved financial performance of the integrated resort.