• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Tough launch time for Studio City: Moody’s

Jan 07, 2015 Newsdesk Latest News, Macau, Top of the deck  


Tough launch time for Studio City: Moody’s

Moody’s Investors Service Inc says declining gaming revenues in Macau are credit negative for rated gaming companies in the Melco Crown Entertainment Ltd group, including MCE Finance Ltd (Ba3 positive), Melco Crown (Macau) Ltd (Ba3 positive), and Studio City Finance Ltd (B2 stable).

“A weaker operating environment will make it more challenging for Studio City Finance to ramp up its Studio City project [pictured], which is scheduled to open in mid-2015, and to realise its revenue growth and de-leveraging plan in the next one to two years,” said Moody’s in a note issued in Hong Kong on Tuesday.

Last year Melco Crown parent said that it was increasing the budget for Studio City by 15 percent, to US$2.3 billion.

“Declining gaming revenue will weaken the companies’ revenue and EBITDA [earnings before interest, taxation, depreciation and amortisation] generation, which in turn diminishes their debt-servicing capacity,” said Kaven Tsang, a Moody’s vice president and senior analyst, in Tuesday’s note.

“Nevertheless, MCE Finance’s established operations and strong financial profile will buffer it from a slowing market,” added the analyst.

MCE Finance had cash and deposits of around US$1.3 billion and undrawn banking facilities of US$401 million as of September 30, said Moody’s. That fully covers the firm’s capital expenditure commitments of US$400 million to US$500 million – as estimated by the ratings agency – as well as debt repayments of US$257 million for the coming 12 months.

Macau’s casino regulator, the Gaming Inspection and Coordination Bureau, on January 2 reported that Macau’s gross gaming revenue (GGR) for 2014 fell 2.6 percent year-on-year to MOP351.52 billion (US$44.0 billion). It was the first annual contraction in GGR since records began in their current form in 2005.


  • tweet
Related articles
  • Melco Resorts to pay special bonus to non-mgmt Macau staff
    Melco Resorts to pay special bonus to...

    Jan 10, 2023  

  • Dancing Water back 2024 in Melco non-gaming reboot
    Dancing Water back 2024 in Melco...

    Dec 17, 2022  

More news
  • Return of tours good for mass floor traffic: observers
    Return of tours good for mass floor...

    Feb 03, 2023  

  • S.Korea casino op GKL’s January sales up 230pct y-o-y
    S.Korea casino op GKL’s January...

    Feb 03, 2023  


Latest News

Return of tours good for mass floor traffic: observers

Return of tours good for mass floor traffic: observers

Feb 03, 2023  

The imminent return of package tours from mainland China will not only help boost Macau’s tourism businesses, but is also expected to help casinos gain more foot traffic in their mass gaming...
Read More
S.Korea casino op GKL’s January sales up 230pct y-o-y

S.Korea casino op GKL’s January sales up 230pct y-o-y

Feb 03, 2023  

Aristocrat completes acquisition of Roxor Gaming

Aristocrat completes acquisition of Roxor Gaming

Feb 03, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”We are confident that the Philippine gaming sector will be able to fully recover, or even surpass its pre-pandemic earnings soon”

Alejandro Tengco

Chairman and chief executive of Pagcor



Most Popular

  • Jaw-dropping wagers in Macau CNY survey: CitigroupJaw-dropping wagers in Macau CNY survey: Citigroup February 2, 2023
  • Return of tours good for mass floor traffic: observersReturn of tours good for mass floor traffic: observers February 3, 2023
  • Galaxy Macau’s new arena to host K-pop group BlackpinkGalaxy Macau’s new arena to host K-pop group Blackpink January 9, 2023
  • Aruze Gaming America opts financial rejig after legal matterAruze Gaming America opts financial rejig after legal matter February 2, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us