Studio City International Holdings Limited Announces Unaudited First Quarter 2025 Earnings

Rhea-AI Summary

Studio City International Holdings (NYSE: MSC) reported its Q1 2025 financial results, showing mixed performance. Total operating revenues increased to US$161.7 million from US$150.2 million year-over-year. The casino's gross gaming revenues rose to US$336.2 million from US$318.4 million. Mass market table games maintained stable drop at US$923.9 million with improved hold percentage of 32.8%. Gaming machine handle increased to US$871.5 million. However, operating income decreased to US$15.3 million from US$16.1 million YoY. Adjusted EBITDA improved to US$69.9 million from US$66.2 million. The company reported a net loss of US$16.0 million (US$0.08 per ADS). Notable changes include the strategic repositioning to focus on premium mass and mass segments, with VIP operations transferred to City of Dreams in October 2024.

Positive

• Total operating revenues increased 7.7% YoY to US$161.7 million
• Gross gaming revenues improved 5.6% to US$336.2 million
• Mass market table games hold percentage improved to 32.8% from 29.5%
• Adjusted EBITDA grew 5.6% to US$69.9 million
• Gaming machine handle increased 5.7% to US$871.5 million

Negative

• Operating income decreased 5% to US$15.3 million
• Net loss widened to US$16.0 million from US$14.6 million YoY
• Total cash and bank balances decreased to US$98.0 million from US$127.8 million in Q4 2024
• High debt level maintained at US$2.16 billion
• Interest expenses remain significant at US$32.5 million

Insights

Financial Analyst specializing in casino and hospitality industries

MSC shows revenue growth but wider losses, with concerning cash burn amid $2.16B debt despite improved gaming metrics.

Studio City's Q1 2025 results present a mixed financial picture with revenue growth counterbalanced by persistent profitability challenges. Total operating revenues increased 7.7% year-over-year to $161.7 million, driven primarily by a 13.5% jump in casino contract revenue to $75.9 million.

The company's strategic repositioning away from VIP operations toward premium mass and mass segments is showing operational improvements. Mass market table games maintained stable drop volume at $923.9 million but achieved a substantially improved hold percentage of 32.8% versus 29.5% in Q1 2024. Similarly, gaming machine handle rose 5.7% to $871.5 million with a win rate improvement to 3.8% from 3.2%.

Non-gaming revenues increased 3.0% to $85.8 million, with rooms and food & beverage showing strong performance at $41.2 million (+7.0%) and $22.8 million (+20.2%) respectively. However, entertainment revenue declined 64.7% to $3.0 million.

Despite revenue improvements, operating income decreased 5.0% to $15.3 million. Adjusted EBITDA improved 5.6% to $69.9 million, but net loss widened to $16.0 million from $14.6 million, maintaining a loss of $0.08 per ADS.

The balance sheet presents concerns, with cash and bank balances dropping 23.3% from December 2024 to $98.0 million, representing a $29.8 million reduction in just one quarter. With debt remaining steady at $2.16 billion, the company's debt-to-cash ratio has deteriorated. Interest expenses of $32.5 million continue to overwhelm operating income, explaining the persistent net losses.

Capital expenditures totaled $16.1 million for the quarter, accounting for over half the cash reduction. With this burn rate and substantial debt service requirements, cash conservation will likely become increasingly important in coming quarters unless operational performance strengthens significantly.

MACAU, May 08, 2025 (GLOBE NEWSWIRE) -- Studio City International Holdings Limited (NYSE: MSC) (“Studio City” or the “Company”), a world-class integrated resort located in Cotai, Macau, today reported its unaudited financial results for the first quarter of 2025.

Total operating revenues for the first quarter of 2025 were US$161.7 million, compared with US$150.2 million in the first quarter of 2024. The increase was primarily attributable to better performance in all gaming operations leading to an increase in revenue from casino contract and higher overall non-gaming revenues.

Studio City Casino generated gross gaming revenues of US$336.2 million and US$318.4 million for the first quarters of 2025 and 2024, respectively.

Mass market table games drop was US$923.9 million in the first quarter of 2025, compared with US$923.3 million in the first quarter of 2024 and hold percentage was 32.8% in the first quarter of 2025, compared with 29.5% in the first quarter of 2024.

Gaming machine handle for the first quarter of 2025 was US$871.5 million, compared with US$824.3 million in the first quarter of 2024 and win rate was 3.8% in the first quarter of 2025, compared with 3.2% in the first quarter of 2024.

As reported in the earnings release for the fourth quarter of 2024, Studio City has strategically repositioned itself to focus on the premium mass and mass segments, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024.

Revenue from casino contract was US$75.9 million for the first quarter of 2025, compared with US$66.9 million for the first quarter of 2024. Revenue from casino contract is net of gaming taxes and the costs incurred in connection with the on-going operation of the Studio City Casino which are deducted by Melco Resorts (Macau) Limited, the gaming operator of the Studio City Casino (the “Gaming Operator”).

Total gaming taxes and the costs incurred in connection with the on-going operation of the Studio City Casino deducted from gross gaming revenues were US$260.2 million and US$251.5 million in the first quarters of 2025 and 2024, respectively.

Total non-gaming revenues at Studio City for the first quarter of 2025 were US$85.8 million, compared with US$83.3 million for the first quarter of 2024.

Operating income for the first quarter of 2025 was US$15.3 million, compared with US$16.1 million in the first quarter of 2024.

Studio City’s Adjusted EBITDA⁽¹⁾ was US$69.9 million in the first quarter of 2025, compared with US$66.2 million in the first quarter of 2024. The change was mainly attributable to the increase in revenue from casino contract and higher non-gaming revenues, partially offset by higher operating costs for the increase in business activities.

Net loss attributable to Studio City International Holdings Limited for the first quarter of 2025 was US$16.0 million, or US$0.08 per ADS, compared with US$14.6 million, or US$0.08 per ADS, in the first quarter of 2024. The net loss attributable to participation interest was US$1.5 million and US$1.4 million in the first quarters of 2025 and 2024, respectively.

Other Factors Affecting Earnings

Total net non-operating expenses for the first quarter of 2025 were US$30.8 million, which mainly included interest expense of US$32.5 million, partially offset by net foreign exchange gains of US$2.0 million.

Depreciation and amortization costs of US$52.5 million were recorded in the first quarter of 2025, of which US$0.8 million was related to the amortization expense for the land use right.

The Adjusted EBITDA for Studio City for the three months ended March 31, 2025 referred to in the earnings release of Melco Resorts & Entertainment Limited (“Melco”) dated May 8, 2025 (“Melco’s Earnings Release”) was US$27.4 million more than the Adjusted EBITDA of Studio City contained in this press release. The Adjusted EBITDA of Studio City contained in this press release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in Melco’s Earnings Release. Such intercompany charges include, among other items, fees and shared service charges billed between the Company and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in Melco’s Earnings Release does not reflect certain gaming concession related costs and certain intercompany costs related to the gaming operations at Studio City Casino.

Financial Position and Capital Expenditures

Total cash and bank balances as of March 31, 2025 aggregated to US$98.0 million (December 31, 2024: US$127.8 million), including US$0.1 million of restricted cash (December 31, 2024: US$0.1 million). Total debt, net of unamortized deferred financing costs and original issue premiums, at the end of the first quarter of 2025 was US$2.16 billion (December 31, 2024: US$2.16 billion).

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

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Studio City International Holdings Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) changes in the gaming market and visitations in Macau, (ii) local and global economic conditions, (iii) capital and credit market volatility, (iv) our anticipated growth strategies, (v) risks associated with the implementation of the amended Macau gaming law by the Macau government, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

(1)	"Adjusted EBITDA" is defined as net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other and other non-operating income and expenses. Adjusted EBITDA, which is a non-GAAP financial measure, is presented as supplemental disclosure because management believes it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA to measure our operating performance and to compare our operating performance with those of our competitors. The Company also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA should not be considered as an alternative to operating income/loss as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA does not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA as only one of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA. Also, the Company’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The use of Adjusted EBITDA has material limitations as an analytical tool, as Adjusted EBITDA does not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. Reconciliations of Adjusted EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.
(2)	“Adjusted net income/loss” is net income/loss before pre-opening costs and property charges and other, net of participation interest and taxes. Adjusted net income/loss, which is a non-GAAP financial measure, is presented as supplemental disclosure because management believes it provides useful information to investors and others in understanding and evaluating our performance, in addition to income/loss computed in accordance with U.S. GAAP. Adjusted net income/loss may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Studio City International Holdings Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.

About Studio City International Holdings Limited

The Company, with its American depositary shares listed on the New York Stock Exchange (NYSE: MSC), is a world-class integrated resort located in Cotai, Macau. For more information about the Company, please visit www.studiocity-macau.com.

The Company is majority owned by Melco Resorts & Entertainment Limited, a company with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO).

For the investment community, please contact:
Jeanny Kim
Senior Vice President, Group Treasurer
Tel: +852 2598 3698
Email: jeannykim@melco-resorts.com

For media enquiries, please contact:
Chimmy Leung
Executive Director, Corporate Communications
Tel: +852 3151 3765
Email: chimmyleung@melco-resorts.com

Studio City International Holdings Limited and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
	Three Months Ended
	March 31,
	2025				2024
Operating revenues:
Revenue from casino contract	$	75,920			$	66,887
Rooms		41,236				38,523
Food and beverage		22,751				18,922
Entertainment		2,964				8,392
Services fee		13,358				12,428
Mall		4,461				4,320
Retail and other		1,030				685
Total operating revenues		161,720				150,157
Operating costs and expenses:
Costs related to casino contract		(9,021	)			(8,158	)
Rooms		(14,772	)			(11,416	)
Food and beverage		(20,134	)			(17,647	)
Entertainment		(5,006	)			(9,263	)
Mall		(1,833	)			(1,634	)
Retail and other		(571	)			(447	)
General and administrative		(40,472	)			(35,392	)
Pre-opening costs		(155	)			(59	)
Amortization of land use right		(831	)			(826	)
Depreciation and amortization		(51,649	)			(49,296	)
Property charges and other		(2,006	)			60
Total operating costs and expenses		(146,450	)			(134,078	)
Operating income		15,270				16,079
Non-operating income (expenses):
Interest income		274				1,588
Interest expense		(32,478	)			(34,791	)
Other financing costs		(573	)			(104	)
Foreign exchange gains, net		1,971				1,320
Total non-operating expenses, net		(30,806	)			(31,987	)
Loss before income tax		(15,536	)			(15,908	)
Income tax expense		(1,940	)			(43	)
Net loss		(17,476	)			(15,951	)
Net loss attributable to participation interest		1,503				1,372
Net loss attributable to Studio City International Holdings Limited	$	(15,973	)		$	(14,579	)
Net loss attributable to Studio City International Holdings Limited per Class A ordinary share:
Basic and diluted	$	(0.021	)		$	(0.019	)
Net loss attributable to Studio City International Holdings Limited per ADS:
Basic and diluted	$	(0.083	)		$	(0.076	)
Weighted average Class A ordinary shares outstanding used in net loss attributable to Studio City International Holdings Limited per Class A ordinary share calculation:
Basic and diluted		770,352,700				770,352,700

Studio City International Holdings Limited and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
	March 31,				December 31,
	2025				2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	97,827			$	127,634
Accounts receivable, net		2,352				1,976
Receivables from affiliated companies		398				309
Inventories		7,812				7,306
Prepaid expenses and other current assets		34,163				29,140
Total current assets		142,552				166,365
Property and equipment, net		2,609,670				2,652,169
Long-term prepayments, deposits and other assets		57,119				52,504
Restricted cash		130				130
Operating lease right-of-use assets		11,617				11,647
Land use right, net		101,608				102,629
Total assets	$	2,922,696			$	2,985,444
LIABILITIES, SHAREHOLDERS’ EQUITY AND
PARTICIPATION INTEREST
Current liabilities:
Accounts payable	$	2,403			$	3,285
Accrued expenses and other current liabilities		78,375				118,117
Income tax payable		9,629				7,626
Current portion of long-term debt, net		21,610				21,597
Payables to affiliated companies		29,496				30,131
Total current liabilities		141,513				180,756
Long-term debt, net		2,142,511				2,141,750
Other long-term liabilities		4,387				4,115
Deferred tax liabilities, net		-				77
Operating lease liabilities, non-current		12,444				12,227
Total liabilities		2,300,855				2,338,925
Shareholders’ equity and participation interest:
Class A ordinary shares, par value $0.0001; 1,927,488,240 shares authorized; 770,352,700 shares issued and outstanding		77				77
Class B ordinary shares, par value $0.0001; 72,511,760 shares authorized; 72,511,760 shares issued and outstanding		7				7
Additional paid-in capital		2,477,359				2,477,359
Accumulated other comprehensive income		2,119				8,701
Accumulated losses		(1,911,382	)			(1,895,409	)
Total shareholders’ equity		568,180				590,735
Participation interest		53,661				55,784
Total shareholders’ equity and participation interest		621,841				646,519
Total liabilities, shareholders’ equity and participation interest	$	2,922,696			$	2,985,444

Studio City International Holdings Limited and Subsidiaries
Reconciliation of Net Loss Attributable to Studio City International Holdings Limited to
Adjusted Net Loss Attributable to Studio City International Holdings Limited (Unaudited)
(In thousands, except share and per share data)
	Three Months Ended
	March 31,
	2025				2024
Net loss attributable to Studio City International Holdings Limited	$	(15,973	)		$	(14,579	)
Pre-opening costs		155				59
Property charges and other		2,006				(60	)
Income tax impact on adjustments		(239	)			-
Participation interest impact on adjustments		(165	)			-
Adjusted net loss attributable to Studio City International Holdings Limited	$	(14,216	)		$	(14,580	)
Adjusted net loss attributable to Studio City International Holdings Limited per Class A ordinary share:
Basic and diluted	$	(0.018	)		$	(0.019	)
Adjusted net loss attributable to Studio City International Holdings Limited per ADS:
Basic and diluted	$	(0.074	)		$	(0.076	)
Weighted average Class A ordinary shares outstanding used in adjusted net loss attributable to Studio City International Holdings Limited per Class A ordinary share calculation:
Basic and diluted		770,352,700				770,352,700

Studio City International Holdings Limited and Subsidiaries
Reconciliation of Operating Income to Adjusted EBITDA (Unaudited)
(In thousands)
	Three Months Ended
	March 31,
	2025			2024
Operating income	$	15,270		$	16,079
Pre-opening costs		155			59
Depreciation and amortization		52,480			50,122
Property charges and other		2,006			(60	)
Adjusted EBITDA	$	69,911		$	66,200

Studio City International Holdings Limited and Subsidiaries
Reconciliation of Net Loss Attributable to Studio City International Holdings Limited
to Adjusted EBITDA (Unaudited)
(In thousands)
	Three Months Ended
	March 31,
	2025				2024
Net loss attributable to Studio City International Holdings Limited	$	(15,973	)		$	(14,579	)
Net loss attributable to participation interest		(1,503	)			(1,372	)
Net loss		(17,476	)			(15,951	)
Income tax expense		1,940				43
Interest and other non-operating expenses, net		30,806				31,987
Depreciation and amortization		52,480				50,122
Property charges and other		2,006				(60	)
Pre-opening costs		155				59
Adjusted EBITDA	$	69,911			$	66,200

Studio City International Holdings Limited and Subsidiaries
Supplemental Data Schedule
			Three Months Ended
			March 31,
			2025				2024
Room Statistics:
		Average daily rate (3)	$	169			$	159
		Occupancy per available room		99	%			96	%
		Revenue per available room (4)	$	166			$	152
Other Information:
		Average number of table games		253				246
		Average number of gaming machines		797				670
		Table games win per unit per day (5)	$	13,320			$	13,031
		Gaming machines win per unit per day (6)	$	458			$	437
(3)	Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms
(4)	Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available
(5)	Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis
(6)	Gaming machines win per unit per day is shown before non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

 

FAQ

What were Studio City's (MSC) Q1 2025 earnings results?

Studio City reported Q1 2025 revenues of US$161.7 million, Adjusted EBITDA of US$69.9 million, and a net loss of US$16.0 million (US$0.08 per ADS).

How did MSC's gaming revenues perform in Q1 2025 compared to Q1 2024?

Studio City Casino's gross gaming revenues increased to US$336.2 million in Q1 2025 from US$318.4 million in Q1 2024, with improved mass market hold percentage of 32.8%.

What is Studio City's (MSC) current debt position as of Q1 2025?

Studio City's total debt was US$2.16 billion as of March 31, 2025, with cash and bank balances of US$98.0 million.

What strategic changes did Studio City (MSC) implement in late 2024?

Studio City strategically repositioned to focus on premium mass and mass segments, transferring VIP rolling chip operations to City of Dreams in October 2024.

How did Studio City's (MSC) non-gaming revenues perform in Q1 2025?

Total non-gaming revenues increased to US$85.8 million in Q1 2025 from US$83.3 million in Q1 2024.