Sunday, August 14, 2022

Studio City different from Galaxy in table allocation: Lawrence Ho


Melco Crown CEO Lawrence Ho said he expects Galaxy Phase II’s table allocation to reflect future allocations but stressed his Studio City project and Galaxy’s should not be seen as in the same situation.

Studio City, which is hoped will get a minimum of 400 tables, is the first integrated-resort to open in the city in the last three years, said Ho, adding that it is hoped the government will reward the company accordingly.

“Unfortunately, we are in the government’s hands. But we do believe that unlike Galaxy, which is really an expansion with additional hotel rooms, Studio City is the first integrated-resort to open in the city in the last three years”, he said in an earnings call to discuss the company’s 15Q1 results.

“Of course, the Galaxy table allocation is a telling indication for the potential of gaming tables for new properties. But we’re hopeful the Macau Government will really reward us with the contribution we have made over the years.”

Ho said that he expects the Hollywood-inspired Studio City to open during the third quarter of the year and to cost $3.2 billion, as planned.

“Studio City remains on budget and on schedule. We have done this [constructing resorts] quite a few times. Near the last mile, contractors are going to try to extort money from us. Given our very cautious focus we are going to hold very firmly [even] if it is going to take a bit longer”, Mr. Ho stressed. “We would much rather open this property in an improved market and still targeting the third quarter. But given the scale of these projects, we are not going to put a gun to our own head,” he said.

During the first quarter of the year, Melco Crown’s YoY adjusted property EBITDA fell 35 percent to $253.3 million.

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