Studio City International Holdings Reports Growth in Q1 Earnings

Studio City International Holdings Limited Reports Strong Q1 Results

Studio City International Holdings Limited (NYSE: MSC), a premier integrated resort, has published its unaudited financial results for the first quarter of the fiscal year 2025. The results underline the resilient recovery and strategic positioning of the company in the competitive gaming landscape.

Revenue Performance Highlights

During the first quarter of 2025, the total operating revenues reached an impressive $161.7 million, marking an increase from $150.2 million in the same quarter of the previous year. This growth is attributed to a remarkable performance across gaming operations, enhancing revenue from casino contracts alongside a robust uptick in non-gaming revenues.

Studio City Casino, notable for its vibrant atmosphere, reported gross gaming revenues of $336.2 million in Q1 2025 compared to $318.4 million in Q1 2024. This demonstrates the casino's strong appeal and operational effectiveness in drawing in patronage.

Table Game and Slots Performance

In terms of mass market table games, the total drop increased to $923.9 million in Q1 2025, slightly up from $923.3 million in Q1 2024. The hold percentage also saw an improvement, rising to 32.8%, compared with 29.5% from the prior year. The overall performance indicates an effective strategy for engaging guests and enhancing the gaming experience.

Additionally, gaming machine handle reached $871.5 million for Q1 2025, reflecting an uptick from $824.3 million in the same quarter last year, with a win rate of 3.8% compared to 3.2% previously.

Strategic Operational Focus

The management has recently focused on repositioning Studio City to cater to the premium mass and mass segments. Notably, as disclosed in the fourth quarter earnings release of 2024, VIP rolling chip operations were transitioned to City of Dreams in late October 2024. This strategic shift aims to optimize resource allocation and marketing efforts, ensuring dedicated attention to core business areas.

Financial Metrics Overview

Revenue derived from casino contracts amounted to $75.9 million in Q1 2025, compared to $66.9 million in Q1 2024. This figure highlights the increasing contribution of casino operations, net of gaming taxes and operational costs deducted by Melco Resorts, acting as the gaming operator for the Studio City Casino.

The first quarter also showcased total non-gaming revenues, which increased to $85.8 million, up from $83.3 million the previous year. While operating income was recorded at $15.3 million, a minor decrease from $16.1 million encountered in Q1 2024, the Adjusted EBITDA, which measures the company's operational profitability, surged to $69.9 million, compared to $66.2 million in the prior year.

Exploring the Net Loss

Despite these financial achievements, Studio City reflected a net loss attributable to shareholders totaling $16.0 million, equivalent to $0.08 per American Depository Share (ADS). This resulted from increased operational costs linked to expanded business activities and non-operating expenses amounting to $30.8 million, primarily driven by interest expense. Nonetheless, adjusted net loss showcased the company's resilience, coming in at $14.2 million.

Investment and Infrastructure Developments

As of March 31, 2025, Studio City reported total cash and bank balances of $98.0 million, with total debt at a stable $2.16 billion. The capital expenditures during Q1 amounted to $16.1 million, reflecting ongoing investments in enhancing the guest experience and maintaining operational excellence.

Looking Ahead

Studio City International Holdings Limited continues to navigate the unique challenges within the gaming and leisure sector while leveraging its established brand and strategic initiatives. As the company seeks to innovate and engage effectively with its customers, it holds a promising outlook for sustainable growth moving forward.

Frequently Asked Questions

What were the total revenues for Studio City in Q1 2025?

The total operating revenues for Studio City in Q1 2025 were $161.7 million.

How did gross gaming revenues compare to the previous year?

Gross gaming revenues increased to $336.2 million in Q1 2025, up from $318.4 million in Q1 2024.

What operational focus has Studio City adopted recently?

Studio City has strategically repositioned to focus on premium mass and mass segments, transferring VIP operations to City of Dreams.

What is the reported net loss for Q1 2025?

The net loss attributable to Studio City in Q1 2025 was $16.0 million, or $0.08 per ADS.

How much did Studio City invest in capital expenditures during Q1?

Capital expenditures for the first quarter of 2025 totaled $16.1 million.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

Contact Evelyn Baker privately here. Or send an email with ATTN: Evelyn Baker as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.