The main entrance of Studio City casino resort, developed by Melco Crown Entertainment
The opening of Studio City in October appears to be a glimmer of hope for Melco Crown Entertainment in the otherwise gloomy backdrop of Macau gaming’s dismal 2015 revenues.
The entertainment group’s market share rose above 16 percent in Macau, up from 13 percent in October, immediately following the opening of the Studio City resort.
Despite a slight drop in December compared with the previous month, the resort has helped Melco Crown attain a historic high in its share of total gross gaming revenue.
“Since Studio City opened in late October, Melco Crown has grown its market share to above [the] 16 percent level, versus being historically around 13 to 14 percent,” said Bernstein analyst Vitaly Umansky.
The resort – the first of its kind in the SAR to play down the VIP gaming element in favor of mass-gaming and non-gaming entertainment – is already setting a precedent for Macau’s other gaming groups.
Sands’ Parisian, the Wynn Palace and MGM Cotai are all slated to open this year, and are expected to focus more on non-gaming elements.
Although gaming analysts noted earlier this week that the Hollywood-themed Studio City complex has not managed to reverse the dwindling fortunes of the casino industry, most forecasters agree that the resort is currently best placed to thrive, should the gaming slump extend into 2017.
However, in an article published yesterday in the Times, the Wall Street Journal noted that the opening of three new resorts could bring an oversupply to the territory. They say that adding hundreds of tables into an already saturated market will not be conducive to a gaming recovery unless there is a notable increase in Macau’s tourist traffic this year.
The owners of Studio City are betting that in the new gaming environment, it will be the non-gaming elements that differentiate the resort from its competitors.
According to the Bernstein report, Studio City’s average daily revenue saw a promising growth of 19 percent in December on a month-to-month basis, reaching MOP11.1 million.
Owners expect the resort’s new entertainment features to help Studio City lead the way in the territory’s gaming diversification. Among them is a figure-of-eight ferris wheel, a Batman-themed simulator and a new “Event Center” arena, where pop star Madonna will perform an intimate gig next month.
But observers will need to wait a little longer to see if it all pays off. Staff reporter
sands leads ggr market share in dec.
In December, Sands China Ltd attained the most market share by total gross gaming revenue. The group saw its share rise by 2.1 percentage points to 23.7 percent and, according to Sanford Bernstein, “benefited from increased visitor arrivals over the holiday season.” Galaxy Entertainment Group and Wynn Macau saw slight gains, up 1.3 percentage points and 0.4 percentage points, respectively. Meanwhile, SJM Holdings slid 1.5 percentage points in December, with MGM China Holdings and Melco Crown Entertainment following suit with declines of 1.9 percentage points and 0.4 percentage points, respectively.
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