Lawrence Ho Yau Lung, Chairman and CEO of casino management group Melco Resorts & Entertainment Ltd., announced that the group's Macau Complex Studio City will launch in the first or second quarter of 2024. The launch will reportedly mark the second phase of facility reopening following the launch of Melco's W Macau hotel in September. The announcement reportedly comes after the opening of the Studio City Complex and the group's Macau flagship City of Dreams both posted record profits in October 2023.
According to reports, Ho Yau Lung said, "We are very excited about Studio City Phase 2. However, the reason we have opened this kind of fragmented door is because we are rolling more and more products into the market." As reported by GGRAsia, the CEO stated that the property still needs major renovations, with most retail facilities expected to open over the next two or three months. David Sisk, chief operating officer of the Macau resort, reportedly said, "W also favors a much different demographic and is especially popular with women. This, hopefully over time, will allow us to continue to expand our database."
Record sales levels reached in October:
Sources said the company's representatives used a recent press conference to say the Studio City Casino Gaming Floor hit a "high in real estate history." The group's Macau flagship City of Dreams set the same record as its sister property. Therefore, Melco appears to be looking to capitalize on the trend and has announced that the popular Show the House of Dancing Water, as reported, will restart "probably at the end of the fourth quarter of 2024.
$2.5 million in daily costs:
Increased operations require increased investment. Melco Chief Financial Officer Jeffrey Davis reportedly said the relaunch would add about $100,000 to the group's daily costs. He also said operating costs for the group's Macau business were up about $2.5 million a day in the third quarter or about $100,000 more than in the second quarter of 2024. According to a report by GGRAsia, the CFO attributed the increase "to the addition of full-time staff and increased marketing costs across [Melco] properties, including the opening of W Macao in September."
Davis also said he expects the group's daily operating costs to reach the $2.6 million level in the fourth quarter of 2023, despite the company's EBITDA increasing over the third quarter, while at the same time, Davis reportedly said he expects the company to maintain the 20% to 25% cost-saving trend achieved during the pandemic. 온라인카지노
Repay Dues to Accelerate Growth:
He also reportedly said Melco "repaid $100 million in debt during the third quarter of 2023 and paid off an additional $100 million at the end of October." In response to the outstanding debt, the CFO said, "We have now withdrawn approximately $1.2 billion into our revolving credit facility, which provides us with approximately $750 million in withdrawal and available revolving credit facilities. We will continue to closely monitor our free cash flow, which will lead to further debt reduction."
As the market recovers and gradually exceeds 2019 levels, Melco plans to add approximately 900 rooms to Studio City, which, combined with accommodation resources at the new Epic Tower and W Macau hotels, will attract more players and accelerate growth as much as possible.
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