Studio City International Holdings Reports Strong Q3 Performance
Studio City International Holdings Limited (NYSE: MSC), a leading integrated resort, has released its unaudited financial results for the third quarter of 2025. This report highlights notable improvements in revenue and operational efficiency, establishing a positive trajectory for the company amidst industry challenges.
Revenue Growth and Key Performance Metrics
For the third quarter of 2025, Studio City reported total operating revenues of US$182.5 million, a 4% increase from US$174.6 million in the same period of 2024. This revenue growth can be attributed to enhanced performance in mass market operations, particularly in casino contracts.
Gaming Performance Highlights
The Studio City Casino's gross gaming revenue reached US$344.4 million, up from US$335.5 million in the year-ago quarter. Notably, mass market table games experienced a significant drop of US$942.5 million in the third quarter of 2025, compared to US$912.9 million a year prior. The hold percentage also saw an improvement from 30.7% in 2024 to 33.1% in 2025.
Non-Gaming Revenue Insights
Non-gaming revenues totaled US$105.2 million for the third quarter, showing a minor decline from US$107.3 million in 2024. This small dip was overshadowed by the strong performance in the gaming segment, underscoring the importance of a balanced revenue stream for Studio City.
Operating Income and Financial Highlights
Studio City reported an operating income of US$23.9 million, an increase from US$16.0 million in the previous year. Adjusted EBITDA was recorded at US$78.1 million, reflecting a rise from US$68.2 million in Q3 2024, largely due to the increase in revenue from casino contracts.
Net Loss Figures
Despite the positive operational metrics, the net loss attributable to Studio City International Holdings Limited was US$18.6 million, or US$0.10 per American depositary share (ADS), which represents an improvement compared to a net loss of US$21.0 million or US$0.11 per ADS in the same quarter last year.
Impact of Non-Operating Expenses
Non-operating expenses amounted to US$41.1 million during this quarter, with interest expenses comprising US$30.9 million and net foreign exchange losses accounting for US$10.1 million. These operational factors illustrate the complexities in the financial landscape that Studio City navigates.
Strategic Focus Moving Forward
In late 2024, the company strategically repositioned its focus towards premium mass and mass market operations, and this shift has proven beneficial. Furthermore, adjustments in gaming operations, such as the reallocation of assets following the closure of Mocha Kuong Fat, have contributed positively to the overall revenue growth.
Financial Position and Capital Expenditures
As of September 30, 2025, total cash and bank balances stood at US$99.6 million, with total debt decreasing from US$2.16 billion at the end of 2024 to US$2.06 billion by the end of Q3 2025. This reduction indicates improved financial health following strategic repayments of senior notes and other debts.
Conclusion and Outlook
Studio City International Holdings Limited has demonstrated remarkable resilience and adaptability in a competitive market. As the company continues to focus on enhancing its offerings and operational efficiencies, stakeholders can remain optimistic about future financial performance and growth prospects.
Frequently Asked Questions
What are the key highlights of Studio City’s Q3 financial results?
Studio City reported US$182.5 million in operating revenues, up 4% from the previous year, with gross gaming revenues reaching US$344.4 million.
How did Studio City's net loss change compared to last year?
The net loss attributable to Studio City was US$18.6 million, which is an improvement from US$21 million in the previous year.
What were the primary factors influencing revenue growth?
The growth was largely driven by enhanced performance in mass market operations and an increased hold percentage in gaming.
What steps has Studio City taken to improve its operational efficiency?
The company has strategically repositioned focus towards premium mass operations and adjusted its gaming operations, reallocating resources effectively.
What is the current financial position of Studio City International Holdings?
As of September 30, 2025, Studio City has cash balances of US$99.6 million and reduced its total debt to US$2.06 billion.
