MSC · Studio City International Holdings Limited

Studio City International Holdings Limited delivered improved Q1 2026 results, with total operating revenues climbing 9.3% year-over-year to US$176.7 million, primarily fueled by stronger mass market table games performance—evidenced by a higher hold percentage of 36.9% versus 32.8% last year—and elevated non-gaming revenues of US$89.8 million, up from US$85.8 million. Casino contract revenue, net of taxes and operating costs deducted by Melco Resorts (Macau) Limited, rose to US$87.0 million from US$75.9 million, underscoring robust underlying gaming demand at Studio City Casino in Cotai, Macau. Gross gaming revenues expanded to US$373.5 million, supported by increased gaming machine handle to US$1.09 billion, though win rate dipped slightly to 3.7%.

Adjusted EBITDA advanced to US$80.0 million from US$69.9 million, bolstered by revenue growth but tempered by higher operating costs; note that this figure includes intercompany charges not reflected in parent Melco Resorts' reporting. Operating income more than doubled to US$28.0 million, reflecting better cost leverage. The swing to net income of US$2.9 million (US$0.02 per ADS) from a US$16.0 million loss was aided by lower non-operating expenses, including reduced interest expense to US$30.0 million and foreign exchange gains of US$8.4 million, alongside depreciation and amortization of US$51.8 million.

Balance sheet shows prudent deleveraging, with total debt net declining US$9.8 million to US$2.01 billion via a US$10.0 million principal repayment under the senior secured credit facility. Cash position softened to US$87.0 million amid US$4.6 million in capital expenditures. Investors should monitor Macau gaming market dynamics and intercompany dependencies with Melco Resorts, as highlighted in the safe harbor statement.