Studio City’s Phase 2 to open in Q2, op seeing rebound

The construction of Studio City Phase 2 is complete, the gaming operator has announced.

The first stage of opening is targeted for the second quarter, which will include one of the hotel towers along with the indoor water park, which is expected to be “the largest of its kind in Asia.”

The remainder of Phase 2 is currently expected to open in the third quarter.

Meanwhile, Melco Resorts & Entertainment Limited reported heavy losses in its total operating revenues of USD1.35 billion versus USD2.01 billion in the prior year.

The decrease in total operating revenues was primarily attributable to travel restrictions in Macau and mainland China related to Covid-19 during the year as well as the government-mandated temporary closure of casinos in Macau in July, which led to softer performance in the rolling chip and mass market table games segments as well as lower non-gaming revenues.

The operating loss for 2022 was USD743.1 million, compared with an operating loss of USD577.5 million for 2021, the group said in a statement.

However, despite a plunge in 2022 revenues, the group remains optimistic as recovery has been underway since the start of the year, following the easing of border restrictions.

In its earnings call with analysts, chairman and CEO of the gaming operator Lawrence Ho said,

“The performance of our Macau properties in 2023 has so far been highly encouraging. During the peak days of Chinese New Year this year, we saw EBITDA reach USD6 million a day, and the GGR exceeded what we recorded during Chinese New Year in 2019,” said Ho.

Melco’s volume post Chinese New Year is holding up well, and its daily average mass volume in February has been in line with January.

Macau’s gross gaming revenue surged to MOP10.32 billion in February, which is up 33.1% year-on-year, according to data released by the Gaming Inspection and Coordination Bureau (DICJ).

“I think if you look at February, February had 10% less days than January. And the figures that DICJ and Macau government released today were effectively from February, and January was flat,” said Ho.

“And considering that Chinese New Year, the entire Chinese New Year period, was really in January this year. So when you consider those factors, February was an amazing month,” he added.