Asia round-up: Studio City Q1 revenue down 58%; GKL sales drop & more

Studio City first quarter revenue down 58%

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Macau’s integrated resort Studio City has reported total operating revenue for Q1 2022 of $12m, down 58% from the same period in 2021.  

The Melco-operated casino’s gross gaming revenue (GGR) was also down $23.5m from the same period in 2021 at $75m, as was rolling chip volume by $65.7m. 

Furthermore, drop from table games decreased 38% year-on-year, while gaming machine handle fell $45.3m. 

Studio City generated negative adjusted EBITDA of $26.7m, down a further 99% on adjusted EBITDA posted in the prior-year period. 

The accruement of these negative figures has resulted in a total operating loss of $61.9m for Q1, compared with operating losses of $45.1m in the first quarter of 2021.  

Expectedly, Studio City has attributed these negative figures to Macau’s Covid-19-related border restrictions on all incoming travel.  

Studio City has also had to take a hit on interest expenses to the tune of $18.5m, which has further affected its financial outcome for the quarter.  

While trying to maintain a forward-looking attitude, Studio City has accepted that uncertainty surrounding Covid-19 outbreaks will likely continue deep into 2022.  

It remains confident, however, that pent-up demand for Macau as an international tourism destination will stay high throughout the region's extended period in isolation. 

The casino notes that the construction of its next integrated resort, Studio City Phase 2, remains on track, and is confident its new building will be completed by a set deadline of 27 December 2022. 

GKL’s April casino sales drop 80% for April

Grand Korea Leisure (GKL) has posted an 80% month-on-month drop in sales for April on South Korea’s stock exchange. This figure is down 49% from the prior-year period. 

“March at GKL saw table game sales go up 409% month-on-month from February, with no obvious explanation provided from the company as to the cause for its rogue revenue spike” Figures from South Korea’s Stock Exchange

Net sales totalled KRW5.77bn ($4.6m), which is the weakest monthly figure seen so far this year for GKL.   

The company solely operates foreign-only casinos, which have posted an accumulated KRW3.74bn in table game revenue this month, down from a significant KRW33.54bn in March. 

Furthermore, money drop amounts fell to KRW62.83bn in April at Seoul Gangnam, down from KRW88.08bn in March.  

However, it would appear that March is more the anomaly than April; the operator’s table game revenue in February was KRW6.84bn, a figure more in line with what has been posted this April. 

March at GKL saw table game sales go up 409% month-on-month from February, with no obvious explanation provided from the company as to the cause for its rogue revenue spike.

The only explanation for these positive numbers is that the company's Seoul Gangnam casino has had lucky levels of retention from all placed bets.

Despite this partial explanation, GKL is not the only South Korean operator to post losses in April. Its rival operator Paradise Co. posted gross gaming revenue down 7.5% month-on-month. This decrease isn't quite as dramatic as the numbers seen at GKL, though.  

96Ace Casino Malaysia releases showcase statement 

Elsewhere, Malaysia’s 96Ace Casino has released a statement detailing its products and services to prospective customers.  

The casino has detailed its strict privacy and security features as a key pull for customers, painting itself as a safe and secure casino destination. 

It remains unclear why 96Ace has decided to release the statement now in particular. However, it may be that the casino anticipates further easing of restrictions in a country where Covid regulations have so far been highly changeable and temperamental.  

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