The operator has reported a GGR increase during October and November 2020 which should see it break even based on adjusted EBITDA.<\/p>\n\n\n\n\n\n\n\n
Macau.- Studio City International Holdings Limited, the company that is developing an expansion of a casino complex in Cotai, has shown confidence to the markets amid the pandemic after posting its latest financial report.<\/p>\n\n\n\n
According to Studio City Finance Limited, its wholly-owned subsidiary, it expects to achieve break-even adjusted EBITDA upon reaching about 30 per cent to 35 per cent of its historical gross gaming revenue run-rate.<\/p>\n\n\n\n
The forecast comes after Studio City’s casino\u2019s combined gross gaming revenues during October and November 2020 resulted in an increase by approximately 146 per cent compared to the previous quarter. <\/p>\n\n\n\n
This grow is directly related to the city’s gradual recovery from the Covid-19 pandemic, especially in the gaming and tourism sector.<\/p>\n\n\n\n
Studio City Finance has reported to the United States Securities and Exchange Commission that by 30 November 2020 the company held cash equivalents of US$98.6m, plus HK$233m under a revolving 2016 credit facility, all of which was available for drawdown.<\/p>\n\n\n\n
However, it added, it also held US$1.60bn in outstanding indebtedness, consisting primarily of the 2019 notes with a principal amount of US$600m due February 2024, plus US$500m in 6.0 per cent notes due July 2025 and US$500m in 6.5 per cent due January 2028.<\/p>\n\n\n\n
The completion of Phase 2 of Studio City’s expansion, however, has been postponed last year due to the impact of the pandemic. It was expected for May 31, 2022, but the deadline could be changed.<\/p>\n\n\n\n
Phase 2 will offer approximately 900 additional luxury hotel rooms and suites, one of the world\u2019s largest indoor\/outdoor water parks, a Cineplex, fine-dining restaurants and MICE space.<\/p>\n","protected":false},"excerpt":{"rendered":"
The operator has reported a GGR increase during October and November 2020 which should see it break even based on adjusted EBITDA.<\/p>\n","protected":false},"author":2,"featured_media":13035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Studio City International Holdings Limited reported a significant GGR increase in October-November 2020, projecting adjusted EBITDA break-even at 30-35% of historical GGR run-rate, signaling market confidence despite the pandemic. The company holds substantial cash and credit but also US$1.60bn in outstanding debt, while its Phase 2 expansion in Macau has been postponed.","focusai_entities":"Studio City International Holdings Limited, Studio City Finance Limited, United States Securities and Exchange Commission","focusai_location":"Macau, Cotai, United States","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"EBITDA Break-even Sustainability?","query":"What specific operational efficiencies or market conditions are critical for Studio City to sustain its adjusted EBITDA break-even point beyond the initial GGR recovery?"},{"label":"Phase 2 Funding Strategy?","query":"Given the US$1.60bn outstanding indebtedness and the Phase 2 postponement, what is Studio City's revised capital allocation strategy and funding plan for the expansion?"}],"footnotes":""},"categories":[160,16338,163],"tags":[23906,18488,22113],"class_list":["post-13032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-east-asia-news","category-finance-news","tag-macau-casinos","tag-melco-resorts","tag-studio-city"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=13032"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13032\/revisions"}],"predecessor-version":[{"id":13048,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13032\/revisions\/13048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/13035"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=13032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=13032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=13032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}