Studio City International has published its official Q3 2024 financial results, demonstrating a remarkable global gaming revenue (GGR) increase of 26.8% year-on-year, amounting to $335.5 million. This significant rise is attributed largely to the resurgence of Macau’s inbound tourism following the easing of pandemic restrictions, a recovery that has positively impacted several metrics across Studio City’s portfolio.
Studio City International Q3 2024 Financial Results
GGR and Operating Revenues Surge Amid Tourism Rebound
The robust 26.8% year-on-year growth in GGR, reaching $335.5 million, underscores Studio City’s strategic recovery from the pandemic’s impacts on Macau’s tourism and gaming industries. Operating revenues for Q3 2024 totaled $174.6 million, marking a 23.7% increase compared to the same period last year. The revitalization of Macau’s tourism sector, coupled with Studio City’s Phase 2 expansion in April 2024, has played a critical role in this upward trajectory.
The non-gaming revenue also saw a notable rise, with Q3 2024 generating $107.3 million, an improvement from the $89 million posted in Q3 2023. This growth emphasizes the company’s broad appeal beyond gaming and highlights its diversified approach to attracting Macau’s returning visitors.
Operating Income and EBITDA Indicate Financial Strength
Studio City’s operating income rose to $16 million in Q3 2024, a significant jump from the $3.2 million reported in Q3 2023. Additionally, the adjusted EBITDA for the quarter increased by 19.1% year-on-year to $68.2 million. This rise of $24.7 million above Melco Resorts & Entertainment’s EBITDA (a subsidiary relationship) is primarily attributed to intercompany charges.
For Studio City, these improvements reflect a renewed financial strength, with a sharp contrast to the difficult period during the pandemic when operating revenues were negative $1.9 million in Q2 2022. This positive EBITDA momentum aligns with Studio City’s strategic positioning for a successful fiscal year, bolstered by Macau’s growing tourism numbers.
Gaming Machine Handle and Rolling Chip Volume Performance
The total gaming machine handle for Q3 2024 reached $853 million, up 23.5% year-on-year from $673.9 million in Q3 2023. This increase in wagers on gaming machines aligns closely with the surge in Macau’s tourism, showcasing the impact of high foot traffic on gaming performance.
However, rolling chip volume experienced a 36.2% decline year-on-year, reaching $494.8 million in Q3 2024. This decrease, however, accompanied an improved rolling chip win rate of 5.57%, up from 1.78% in Q3 2023. This trend reflects Studio City’s strategic focus on revenue per player, with the rising win rate signaling a favorable outlook for revenue stability despite variations in volume.
Net Loss Reduction: Encouraging Financial Progress
Studio City has made strides in reducing its net losses, with Q3 2024 net loss shrinking to $21 million, a significant improvement over the $28.4 million loss recorded in Q3 2023. This reduction aligns with the organization’s broader financial recovery efforts and is a positive sign for investors as the fiscal year progresses. The improved loss figure, aided by controlled expenses and rising revenue, highlights the effectiveness of Studio City’s recovery and growth strategy amid a challenging post-pandemic landscape.
Phase 2 Expansion and Aristocrat Partnership Enhance Market Position
In April 2024, Studio City launched its long-anticipated Phase 2 expansion, which included additional entertainment, hospitality, and gaming amenities aimed at broadening its appeal. The expanded facilities have been a key factor in drawing more tourists to Studio City, enhancing both gaming and non-gaming revenues.
Moreover, in a strategic move to capitalize on October Golden Week and attract more players, Studio City teamed up with Aristocrat. This partnership introduced exclusive gaming experiences that appealed to high-value guests and returning tourists. These strategic collaborations and expansions have allowed Studio City to position itself effectively in a recovering tourism market.
Macau’s Tourism Revival and Market Potential
Macau’s tourism industry has rebounded significantly, approaching pre-pandemic visitor numbers and showing a steady demand for both gaming and non-gaming experiences. The total GGR across Macau has surged by 28.1% in 2024 compared to 2023, with Studio City benefiting directly from this recovery. Macau’s appeal as a tourism and gaming hub, combined with recent regulatory support, points to continued growth opportunities.
Studio City’s alignment with Macau’s tourism rebound, along with its well-timed expansion efforts, demonstrates its foresight in capturing market share in an evolving landscape.
Conclusion: Outlook for Studio City as 2024 Progresses
Studio City International’s Q3 2024 results underscore a resilient and strategic recovery as the company capitalizes on Macau’s strengthening tourism industry. From a 26.8% rise in GGR to robust operating revenue gains and strategic partnerships, Studio City is well-positioned to build on this momentum. The expansion of its non-gaming amenities, reduction in net losses, and enhanced EBITDA mark a stable outlook as the company moves toward the final quarter of 2024.
The positive shifts in Macau’s tourism and gaming sectors have strengthened Studio City’s ability to meet rising consumer demand and deliver value to stakeholders, reinforcing its position as a leader in Macau’s integrated resort market. As the company continues to focus on enhancing its service offerings, the upcoming months are anticipated to drive further revenue growth, adding to an already promising fiscal year.
FAQs About Studio City International Q3 2024 Financial Results
1. What are Studio City International’s Q3 2024 financial results?
Studio City International reported a strong financial performance in Q3 2024, with global gaming revenue (GGR) rising by 26.8% year-on-year, reaching $335.5 million. Operating revenues for the third quarter totaled $174.6 million, a 23.7% increase compared to Q3 2023.
2. What contributed to the increase in Studio City’s revenue this quarter?
The growth in Studio City’s revenue can be attributed to increased inbound tourism in Macau, driven by a recovery in the region’s tourism industry. Additionally, the opening of Phase 2 of Studio City in April 2024 played a significant role by enhancing the resort’s offerings and attracting more visitors.
3. How did non-gaming revenue perform for Studio City in Q3 2024?
Non-gaming revenue saw a substantial increase, reaching $107.3 million in Q3 2024, up from $89 million in Q3 2023. This reflects Studio City’s broader appeal beyond gaming, as it offers additional entertainment and hospitality experiences.
4. What was Studio City’s operating income in Q3 2024?
Studio City’s operating income in Q3 2024 was $16 million, a significant increase from $3.2 million reported in Q3 2023. This improvement reflects the financial stability achieved from both gaming and non-gaming segments.
5. How did Studio City’s adjusted EBITDA perform in Q3 2024?
Adjusted EBITDA grew by 19.1% year-on-year, totaling $68.2 million for Q3 2024. This increase of $24.7 million above the figures released by Melco Resorts & Entertainment is attributed to intercompany charges.
6. What were the results of Studio City’s gaming machine handle and rolling chip volume in Q3 2024?
The gaming machine handle reached $853 million in Q3 2024, a 23.5% increase year-on-year. However, rolling chip volume declined by 36.2% year-on-year to $494.8 million. Despite the drop in rolling chip volume, the rolling chip win rate increased to 5.57%, compared to 1.78% in Q3 2023.
7. Did Studio City manage to reduce its net loss in Q3 2024?
Yes, Studio City successfully reduced its net loss to $21 million in Q3 2024, down from $28.4 million in Q3 2023. This reduction signals positive financial progress and effective cost management by Studio City.
8. What role did Phase 2 expansion play in Studio City’s Q3 results?
The Phase 2 expansion, which opened in April 2024, introduced new entertainment, hospitality, and gaming amenities to Studio City, attracting more visitors and helping boost both gaming and non-gaming revenue.
9. How has Studio City’s partnership with Aristocrat impacted its performance?
Studio City partnered with Aristocrat for October Golden Week, enhancing gaming experiences to appeal to high-value visitors. This collaboration added unique offerings that helped attract more players during a peak tourism period.
10. How has Macau’s tourism recovery influenced Studio City’s results?
Macau’s tourism recovery, nearing pre-pandemic visitor levels, has significantly benefited Studio City’s performance. The increase in inbound tourists directly contributed to the growth in gaming and non-gaming revenue, boosting the company’s overall results for Q3 2024.
11. What is the outlook for Studio City in the coming months?
With strong financial results in Q3 2024, Studio City is well-positioned for continued growth. The recovery in Macau’s tourism sector, coupled with Studio City’s expanded offerings and strategic partnerships, provides a positive outlook for the remainder of 2024.
