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Studio City International Holdings Limited rose 8.8% on Monday and is now up more than 35% over the last week. The casino stock pushed higher, despite some Macau sector weakness, after gross gaming revenue for the region was reported to be at a 2024 low in June. For the first six months of the year, Macau gross gaming revenue was up 41.9% from a year ago to 113.8 billion patacas. For the year, Macau GGR is running about 74% of the pre-pandemic level of 2019.
Studio City International (NYSE:MSC) is a Macau-based entertainment resort operator that owns and manages Studio City Casino. The company went public in 2018, offering 28,750,000 ADS on the New York Stock Exchange, with each ADS representing four Class A ordinary shares. The Studio City Casino features approximately 250 gaming tables and 970 gaming machines, focusing on the mass market segment, which is believed to offer higher margins and attractive long-term growth opportunities. The resort also includes non-gaming attractions such as a figure-8 Ferris wheel, a Batman-themed 4D flight simulator, and a 5,000-seat entertainment center. Studio City International is controlled by MCE Cotai Investments Limited, with New Cotai, LLC as a principal shareholder. The company has issued various senior notes and secured credit facilities to finance its operations and development.
Earlier this year, the casino operator’s new mass market premium mass gaming room located in the Epic Tower of Melco Resorts’ (MLCO) Studio City Phase 2 development was reported to be one of Macau’s best performing gaming spaces.