MACAU BUSINESS
“There’s been a big change to our direction here with Studio City. Over the last few years,
throughout the pandemic, we
have been repositioning ourselves to be more mass-oriented, more family-friendly”
$88.2 million in the October-December period of 2021, while the venue generated negative adjusted EBITDA of US $100,000 against negative adjusted EBITDA of US $5.5 million in the last quarter of 2020. The total non-gaming revenue of the property reached US $17.7 million in the fourth quarter of 2021, down by 10.6 per cent year-on-year. Prior to the Covid-19 pandemic, the operating revenue of the venue garnered US $358.3 million, while the non-gaming revenue topped out at US $52.1 billion in the fourth quarter of 2019, Melco figures show.
Beyond Guangdong
Asked about the performance of the property so far this year in view of the recent surges of the coronavirus cases in nearby Hong Kong and Mainland China, Mr Benning notes, “It’s just been a challenge throughout this entire year as we continue to go through this… but we are getting through this pandemic the best we can.” The general manager also describes the pandemic as “a
blessing in disguise,” giving more time for the team to introduce new amenities and offerings. “It gives us the opportunity to kind of start from scratch and come up with what that right vision is for the future,” he says. “When the borders open up, I think Macau’s going to be great.” The latest government figures show that the number of
that we have across the Melco brand.” Qi Long refers to the brand of high-limit gaming areas and services run by Melco across its properties. As Studio City is repositioning itself to be more mass-
oriented, the existing food and beverage and retail offerings, as well as other activities in the property, have also been adjusted in the past two years, according to the general manager. For instance, an auto show of Chinese electric vehicle maker BYD has recently taken place in the resort, alongside a picnic for dogs and their owners. “It’s not just all ultra high-end luxury. We know as we bring in more of these family-friendly amenities, our retail mix needs to shift as well,” Mr Benning adds. The latest financial results from Melco show the quarterly operating revenue of Studio City stood flat year-on-year at US
22 JUNE 2022
travellers to Macau rose 8 per cent year-on-year to 1.88 million in the first three months of 2022, albeit a decline of over 30 per cent in the visitation figure in March, owing to the new wave of coronavirus outbreaks across the border. The gaming revenue citywide plunged 24.8 per cent from the previous year to MOP17.78 billion (US $2.22 billion) in the first quarter of this year, the data showed. Since the start of the Covid-19 pandemic more than two years ago, the city has engaged in only largely quarantine-free arrangements with the mainland. Looking forward, Mr Benning also hopes the new facilities and offerings in Phase 2 will help Studio City to reach guests beyond the city and nearby Guangdong province. “Right now, as you see in the market, it’s much more local-focused and Guangdong-focused. It [will] be like that until the border starts to open up,” he says. “But that being said, one of the things we’re hoping for these attractions is to start getting more of that non-Guangdong mix into Studio City… [and] to focus on non-gaming guests from Greater China as well as throughout Southeast Asia when the borders open up. We feel we have a lot of opportunities there. “With these additional attractions, particularly like the Super Fun Zone and water parks, you are going to need more than one day [to spend in Studio City],” he concludes.
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