Melco Resorts & Entertainment Ltd, the casino operating group led by Lawrence Ho Yau Lung, has announced the forthcoming launch of the Studio City complex in Macau. The complex, which represents Phase 2 of the facility re-opening, is set to open in the first quarter of 2024 or early in the second quarter. This announcement follows the all-time high revenues recorded in October 2023 by the partially opened Studio City complex and the group’s flagship City of Dreams.
According to Ho Yau Lung, the gradual opening of the property is a strategic move to roll more and more product into the market. The property still requires major renovation work, and most of the retail facilities are expected to open over the next two to three months.
The recent press conference revealed that the Studio City casino gaming floor produced an all-time high in the history of the property, as did the City of Dreams. With these record revenue levels, Melco plans to relaunch the popular show, The House of Dancing Water, probably late in the fourth quarter of 2024.
However, the increased operations also require increased investments. Geoffrey Davis, Melco’s chief financial officer, stated that the relaunch would add around US$100,000 to the group’s daily costs. The operating costs of the group’s Macau business increased to around US$2.5 million per day in Q3, up from around US$100,000 compared to Q2 2024.
Despite the increased costs, the company’s EBITDA still increased over the third quarter. Melco also aims to maintain a cost savings trend of 20 to 25 percent achieved during the pandemic.
To further accelerate growth, Melco is looking to add around 900 rooms at Studio City to enhance its accommodation resources. The company also aims to repay its dues to drive further debt reduction as the market gradually recovers and exceeds the 2019 levels.
In conclusion, the ongoing expansion and re-opening of Studio City reflects Melco Resorts & Entertainment Ltd’s commitment to maximizing opportunities for growth and success.