Studio City International Holdings Limited Announces Unaudited Third Quarter 2025 Earnings

MACAU, Nov. 06, 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 third quarter of 2025.

Total operating revenues for the third quarter of 2025 were US$182.5 million, compared with US$174.6 million in the third quarter of 2024. The increase was primarily attributable to better performance in mass market operations leading to an increase in revenue from casino contract.

Studio City Casino generated gross gaming revenues of US$344.4 million and US$335.5 million for the third quarters of 2025 and 2024, respectively.

Mass market table games drop was US$942.5 million in the third quarter of 2025, compared with US$912.9 million in the third quarter of 2024 and hold percentage was 33.1% in the third quarter of 2025, compared with 30.7% in the third quarter of 2024.

Gaming machine handle for the third quarter of 2025 was US$873.3 million, compared with US$853.0 million in the third quarter of 2024 and win rate was 3.7% in the third quarter of 2025, compared with 3.3% in the third 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 operations, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024.

Following the closure of Mocha Kuong Fat in September 2025, 90 gaming machines were re-allocated to Studio City.

Revenue from casino contract was US$77.3 million for the third quarter of 2025, compared with US$67.3 million for the third 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$267.2 million and US$268.1 million in the third quarters of 2025 and 2024, respectively.

Total non-gaming revenues at Studio City for the third quarter of 2025 were US$105.2 million, compared with US$107.3 million for the third quarter of 2024.

Operating income for the third quarter of 2025 was US$23.9 million, compared with US$16.0 million in the third quarter of 2024.

Studio City's Adjusted EBITDA⁽¹⁾ was US$78.1 million in the third quarter of 2025, compared with US$68.2 million in the third quarter of 2024. The change was mainly attributable to the increase in revenue from casino contract.

Net loss attributable to Studio City International Holdings Limited for the third quarter of 2025 was US$18.6 million, or US$0.10 per ADS, compared with US$21.0 million, or US$0.11 per ADS, in the third quarter of 2024. The net loss attributable to participation interest was US$1.7 million and US$2.0 million in the third quarters of 2025 and 2024, respectively.

Other Factors Affecting Earnings

Total net non-operating expenses for the third quarter of 2025 were US$41.1 million, which mainly included interest expense of US$30.9 million and net foreign exchange losses of US$10.1 million.

Depreciation and amortization costs of US$54.0 million were recorded in the third quarter of 2025, of which US$0.8 million was related to the amortization expense for the land use right.

Adjusted EBITDA for Studio City for the three months ended September 30, 2025 referred to in the earnings release of Melco Resorts & Entertainment Limited ("Melco") dated November 6, 2025 ("Melco's Earnings Release") was US$26.6 million more than the Adjusted EBITDA of Studio City reported in this press release. Adjusted EBITDA of Studio City reported in this press release includes certain intercompany charges that are not included in Adjusted EBITDA for Studio City reported 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 presented 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 September 30, 2025 aggregated to US$99.6 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 third quarter of 2025 was US$2.06 billion (December 31, 2024: US$2.16 billion), a reduction of US$109.3 million compared to total debt, net as of June 30, 2025. The reduction in total debt, net was primarily the result of the repayment of US$221.6 million principal amount outstanding under the 6.00% senior notes due 2025 upon maturity on July 15, 2025, which was funded with a HK$1,337.0 million (equivalent to US$170.3 million) drawdown from the senior secured credit facilities entered into by Studio City Company Limited and cash on hand, as well as the repayment of HK$468.0 million (equivalent to US$60.0 million) principal amount outstanding under the senior secured credit facility in September 2025.

Capital expenditures for the third quarter of 2025 were US$9.7 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, property charges and other and loss on extinguishment of debt, 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: [email protected]

For media enquiries, please contact:

Chimmy Leung

Executive Director, Corporate Communications

Tel: +852 3151 3765

Email: [email protected]

Studio City International Holdings Limited and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2025				2024				2025				2024
Operating revenues:
Revenue from casino contract	$	77,267			$	67,312			$	236,970			$	196,279
Rooms		44,093				41,602				124,974				117,800
Food and beverage		23,390				24,585				67,594				67,484
Entertainment		13,514				18,630				35,609				43,222
Services fee		18,067				16,395				52,271				45,158
Mall		5,096				5,055				14,059				13,767
Retail and other		1,087				1,051				2,808				2,572
Total operating revenues		182,514				174,630				534,285				486,282
Operating costs and expenses:
Costs related to casino contract		(9,856	)			(8,815	)			(29,229	)			(25,923	)
Rooms		(15,635	)			(13,506	)			(45,183	)			(37,484	)
Food and beverage		(19,543	)			(21,272	)			(59,138	)			(59,237	)
Entertainment		(10,453	)			(14,676	)			(34,174	)			(39,321	)
Mall		(2,039	)			(1,958	)			(5,806	)			(5,356	)
Retail and other		(644	)			(657	)			(1,820	)			(1,714	)
General and administrative		(46,257	)			(45,577	)			(134,564	)			(128,653	)
Pre-opening costs		(31	)			(23	)			(500	)			(829	)
Amortization of land use right		(828	)			(829	)			(2,485	)			(2,482	)
Depreciation and amortization		(53,148	)			(51,017	)			(156,803	)			(149,812	)
Property charges and other		(158	)			(323	)			(2,318	)			(443	)
Total operating costs and expenses		(158,592	)			(158,653	)			(472,020	)			(451,254	)
Operating income		23,922				15,977				62,265				35,028
Non-operating income (expenses):
Interest income		205				524				722				3,440
Interest expense		(30,885	)			(32,785	)			(95,867	)			(101,222	)
Other financing costs		(293	)			(105	)			(1,446	)			(313	)
Foreign exchange (losses) gains, net		(10,097	)			(3,932	)			632				(4,268	)
Loss on extinguishment of debt		-				(114	)			-				(983	)
Total non-operating expenses, net		(41,070	)			(36,412	)			(95,959	)			(103,346	)
Loss before income tax		(17,148	)			(20,435	)			(33,694	)			(68,318	)
Income tax expense		(3,169	)			(2,507	)			(8,197	)			(7,153	)
Net loss		(20,317	)			(22,942	)			(41,891	)			(75,471	)
Net loss attributable to participation interest		1,748				1,974				3,604				6,493
Net loss attributable to Studio City International Holdings Limited	$	(18,569	)		$	(20,968	)		$	(38,287	)			(68,978	)
Net loss attributable to Studio City International Holdings Limited per Class A ordinary share:
Basic and diluted	$	(0.024	)		$	(0.027	)		$	(0.050	)		$	(0.090	)
Net loss attributable to Studio City International Holdings Limited per ADS:
Basic and diluted	$	(0.096	)		$	(0.109	)		$	(0.199	)		$	(0.358	)
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				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)
	September 30,				December 31,
	2025				2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	99,446			$	127,634
Accounts receivable, net		1,288				1,976
Receivables from affiliated companies		230				309
Inventories		7,746				7,306
Prepaid expenses and other current assets		8,361				29,140
Total current assets		117,071				166,365
Property and equipment, net		2,531,013				2,652,169
Long-term prepayments, deposits and other assets		62,639				52,504
Restricted cash		130				130
Operating lease right-of-use assets		11,579				11,647
Land use right, net		99,889				102,629
Total assets	$	2,822,321			$	2,985,444
LIABILITIES, SHAREHOLDERS' EQUITY AND
PARTICIPATION INTEREST
Current liabilities:
Accounts payable	$	2,575			$	3,285
Accrued expenses and other current liabilities		69,495				118,117
Income tax payable		15,532				7,626
Current portion of long-term debt, net		-				21,597
Payables to affiliated companies		66,374				30,131
Total current liabilities		153,976				180,756
Long-term debt, net		2,055,616				2,141,750
Other long-term liabilities		5,526				4,115
Deferred tax liabilities, net		112				77
Operating lease liabilities, non-current		11,857				12,227
Total liabilities		2,227,087				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		115				8,701
Accumulated losses		(1,933,696	)			(1,895,409	)
Total shareholders' equity		543,862				590,735
Participation interest		51,372				55,784
Total shareholders' equity and participation interest		595,234				646,519
Total liabilities, shareholders' equity and participation interest	$	2,822,321			$	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								Nine Months Ended
	September 30,								September 30,
	2025				2024				2025				2024
Net loss attributable to Studio City International Holdings Limited	$	(18,569	)		$	(20,968	)		$	(38,287	)		$	(68,978	)
Pre-opening costs		31				23				500				829
Property charges and other		158				323				2,318				443
Loss on extinguishment of debt		-				114				-				983
Income tax impact on adjustments		(16	)			-				(255	)			(12	)
Participation interest impact on adjustments		(15	)			(40	)			(221	)			(194	)
Adjusted net loss attributable to Studio City International Holdings Limited	$	(18,411	)		$	(20,548	)		$	(35,945	)		$	(66,929	)
Adjusted net loss attributable to Studio City International Holdings Limited per Class A ordinary share:
Basic and diluted	$	(0.024	)		$	(0.027	)		$	(0.047	)		$	(0.087	)
Adjusted net loss attributable to Studio City International Holdings Limited per ADS:
Basic and diluted	$	(0.096	)		$	(0.107	)		$	(0.187	)		$	(0.348	)
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				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						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Operating income	$	23,922		$	15,977		$	62,265		$	35,028
Pre-opening costs		31			23			500			829
Depreciation and amortization		53,976			51,846			159,288			152,294
Property charges and other		158			323			2,318			443
Adjusted EBITDA	$	78,087		$	68,169		$	224,371		$	188,594

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								Nine Months Ended
	September 30,								September 30,
	2025				2024				2025				2024
Net loss attributable to Studio City International Holdings Limited	$	(18,569	)		$	(20,968	)		$	(38,287	)		$	(68,978	)
Net loss attributable to participation interest		(1,748	)			(1,974	)			(3,604	)			(6,493	)
Net loss		(20,317	)			(22,942	)			(41,891	)			(75,471	)
Income tax expense		3,169				2,507				8,197				7,153
Interest and other non-operating expenses, net		41,070				36,412				95,959				103,346
Depreciation and amortization		53,976				51,846				159,288				152,294
Property charges and other		158				323				2,318				443
Pre-opening costs		31				23				500				829
Adjusted EBITDA	$	78,087			$	68,169			$	224,371			$	188,594

Studio City International Holdings Limited and Subsidiaries
Supplemental Data Schedule
						Three Months Ended								Nine Months Ended
						September 30,								September 30,
							2025				2024				2025				2024
Room Statistics:
		Average daily rate(3)				$	178			$	171			$	170			$	162
		Occupancy per available room					97	%			96	%			98	%			96	%
		Revenue per available room(4)				$	174			$	164			$	166			$	155
Other Information:
		Average number of table games					253				253				253				250
		Average number of gaming machines					726				726				749				679
		Table games win per unit per day(5)				$	13,572			$	13,212			$	13,680			$	13,270
		Gaming machines win per unit per day(6)				$	484			$	418			$	485			$	443
(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