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Studio City International Holdings Limited Announces Unaudited Second Quarter 2025 Earnings

1. MSC reported Q2 2025 revenues at $190.1M, up from $161.5M in 2024. 2. Casino revenue rose to $359.6M from $339.3M YoY, driven by mass market growth. 3. Adjusted EBITDA increased to $76.4M, compared to $54.2M in Q2 2024. 4. Net loss decreased significantly to $3.7M from $33.4M YoY. 5. Company's cash reserves rose to $173.5M, aiding financial stability.

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The increase in revenues and reduction of net loss indicates improving financial health.

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MLCO
MACAU, July 31, 2025 (GLOBE NEWSWIRE) -- Studio City International Holdings Limited (NYSE: MSC) (“Studio City” or the “Company”), a world-class integrated resort located in Cotai, Macau, today reported its unaudited financial results for the second quarter of 2025. Total operating revenues for the second quarter of 2025 were US$190.1 million, compared with US$161.5 million in the second quarter of 2024. The increase was primarily attributable to better performance in mass market operations leading to an increase in revenue from casino contract and higher overall non-gaming revenues. Studio City Casino generated gross gaming revenues of US$359.6 million and US$339.3 million for the second quarters of 2025 and 2024, respectively. Mass market table games drop was US$958.2 million in the second quarter of 2025, compared with US$955.6 million in the second quarter of 2024 and hold percentage was 34.0% in the second quarter of 2025, compared with 30.1% in the second quarter of 2024. Gaming machine handle for the second quarter of 2025 was US$916.1 million, compared with US$842.4 million in the second quarter of 2024 and win rate was 3.7% in the second quarter of 2025, compared with 3.3% in the second quarter of 2024. As reported in the earnings release for the fourth quarter of 2024, Studio City has strategically repositioned itself to focus on the premium mass and mass operations, and VIP rolling chip operations at Studio City were transferred to City of Dreams in late October 2024. Revenue from casino contract was US$83.8 million for the second quarter of 2025, compared with US$62.1 million for the second quarter of 2024. Revenue from casino contract is net of gaming taxes and the costs incurred in connection with the on-going operation of the Studio City Casino which are deducted by Melco Resorts (Macau) Limited, the gaming operator of the Studio City Casino (the “Gaming Operator”). Total gaming taxes and the costs incurred in connection with the on-going operation of the Studio City Casino deducted from gross gaming revenues were US$275.8 million and US$277.2 million in the second quarters of 2025 and 2024, respectively. Total non-gaming revenues at Studio City for the second quarter of 2025 were US$106.3 million, compared with US$99.4 million for the second quarter of 2024. Operating income for the second quarter of 2025 was US$23.1 million, compared with US$3.0 million in the second quarter of 2024. Studio City’s Adjusted EBITDA(1) was US$76.4 million in the second quarter of 2025, compared with US$54.2 million in the second quarter of 2024. The change was mainly attributable to the increase in revenue from casino contract and higher overall non-gaming revenues, partially offset by higher operating costs for the increase in business activities. Net loss attributable to Studio City International Holdings Limited for the second quarter of 2025 was US$3.7 million, or US$0.02 per ADS, compared with US$33.4 million, or US$0.17 per ADS, in the second quarter of 2024. The net loss attributable to participation interest was US$0.4 million and US$3.1 million in the second quarters of 2025 and 2024, respectively. Other Factors Affecting Earnings Total net non-operating expenses for the second quarter of 2025 were US$24.1 million, which mainly included interest expense of US$32.5 million, partially offset by net foreign exchange gains of US$8.8 million. Depreciation and amortization costs of US$52.8 million were recorded in the second quarter of 2025, of which US$0.8 million was related to the amortization expense for the land use right. The Adjusted EBITDA for Studio City for the three months ended June 30, 2025 referred to in the earnings release of Melco Resorts & Entertainment Limited (“Melco”) dated July 31, 2025 (“Melco’s Earnings Release”) was US$28.8 million more than the Adjusted EBITDA of Studio City contained in this press release. The Adjusted EBITDA of Studio City contained in this press release includes certain intercompany charges that are not included in the Adjusted EBITDA for Studio City contained in Melco’s Earnings Release. Such intercompany charges include, among other items, fees and shared service charges billed between the Company and its subsidiaries and certain subsidiaries of Melco. Additionally, Adjusted EBITDA of Studio City included in Melco’s Earnings Release does not reflect certain gaming concession related costs and certain intercompany costs related to the gaming operations at Studio City Casino. Financial Position and Capital Expenditures Total cash and bank balances as of June 30, 2025 aggregated to US$173.5 million (December 31, 2024: US$127.8 million), including US$0.1 million of restricted cash (December 31, 2024: US$0.1 million). Total debt, net of unamortized deferred financing costs and original issue premiums, at the end of the second quarter of 2025 was US$2.16 billion (December 31, 2024: US$2.16 billion). In July 2025, Studio City repaid the US$221.6 million principal amount outstanding under the 6.00% senior notes, which matured on July 15, 2025, with a HK$1,337.0 million (equivalent to US$170.3 million) drawdown from the senior secured credit facilities entered into by Studio City Company Limited and the remainder with cash on hand. Capital expenditures for the second quarter of 2025 were US$16.3 million. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Studio City International Holdings Limited (the “Company”) may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to, (i) changes in the gaming market and visitations in Macau, (ii) local and global economic conditions, (iii) capital and credit market volatility, (iv) our anticipated growth strategies, (v) risks associated with the implementation of the amended Macau gaming law by the Macau government, (vi) gaming authority and other governmental approvals and regulations, and (vii) our future business development, results of operations and financial condition. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law. Non-GAAP Financial Measures (1)"Adjusted EBITDA" is defined as net income/loss before interest, taxes, depreciation, amortization, pre-opening costs, property charges and other and other non-operating income and expenses. Adjusted EBITDA, which is a non-GAAP financial measure, is presented as supplemental disclosure because management believes it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA to measure our operating performance and to compare our operating performance with those of our competitors.   The Company also presents Adjusted EBITDA because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures, and meet working capital requirements. Gaming companies have historically reported similar measures as supplements to financial measures in accordance with generally accepted accounting principles, in particular, U.S. GAAP or International Financial Reporting Standards. However, Adjusted EBITDA should not be considered as an alternative to operating income/loss as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with U.S. GAAP. Unlike net income/loss, Adjusted EBITDA does not include depreciation and amortization or interest expense and, therefore, do not reflect current or future capital expenditures or the cost of capital. The Company recognizes these limitations and uses Adjusted EBITDA as only one of several comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance.   Such U.S. GAAP measurements include operating income/loss, net income/loss, cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other recurring and nonrecurring charges, which are not reflected in Adjusted EBITDA. Also, the Company’s calculation of Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The use of Adjusted EBITDA has material limitations as an analytical tool, as Adjusted EBITDA does not include all items that impact our net income/loss. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to its most directly comparable GAAP financial measure. Reconciliations of Adjusted EBITDA with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release.  (2)“Adjusted net income/loss” is net income/loss before pre-opening costs, property charges and other and loss on extinguishment of debt, net of participation interest and taxes. Adjusted net income/loss, which is a non-GAAP financial measure, is presented as supplemental disclosure because management believes it provides useful information to investors and others in understanding and evaluating our performance, in addition to income/loss computed in accordance with U.S. GAAP. Adjusted net income/loss may be different from the calculation methods used by other companies and, therefore, comparability may be limited. Reconciliations of adjusted net income/loss attributable to Studio City International Holdings Limited with the most comparable financial measures calculated and presented in accordance with U.S. GAAP are provided herein immediately following the financial statements included in this press release. About Studio City International Holdings Limited The Company, with its American depositary shares listed on the New York Stock Exchange (NYSE: MSC), is a world-class integrated resort located in Cotai, Macau. For more information about the Company, please visit www.studiocity-macau.com. The Company is majority owned by Melco Resorts & Entertainment Limited, a company with its American depositary shares listed on the Nasdaq Global Select Market (Nasdaq: MLCO). For the investment community, please contact:Jeanny KimSenior Vice President, Group TreasurerTel: +852 2598 3698Email: jeannykim@melco-resorts.com For media enquiries, please contact: Chimmy LeungExecutive Director, Corporate CommunicationsTel: +852 3151 3765Email: chimmyleung@melco-resorts.com             Studio City International Holdings Limited and SubsidiariesCondensed Consolidated Statements of Operations (Unaudited)(In thousands, except share and per share data)                         Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024            Operating revenues:           Revenue from casino contract$83,783  $62,080  $159,703  $128,967 Rooms 39,645   37,675   80,881   76,198 Food and beverage 21,453   23,977   44,204   42,899 Entertainment 19,131   16,200   22,095   24,592 Services fee 20,846   16,335   34,204   28,763 Mall 4,502   4,392   8,963   8,712 Retail and other 691   836   1,721   1,521 Total operating revenues 190,051   161,495   351,771   311,652             Operating costs and expenses:           Costs related to casino contract (10,352)  (8,950)  (19,373)  (17,108)Rooms (14,776)  (12,562)  (29,548)  (23,978)Food and beverage (19,461)  (20,318)  (39,595)  (37,965)Entertainment (18,715)  (15,382)  (23,721)  (24,645)Mall (1,934)  (1,764)  (3,767)  (3,398)Retail and other (605)  (610)  (1,176)  (1,057)General and administrative (47,835)  (47,684)  (88,307)  (83,076)Pre-opening costs (314)  (747)  (469)  (806)Amortization of land use right (826)  (827)  (1,657)  (1,653)Depreciation and amortization (52,006)  (49,499)  (103,655)  (98,795)Property charges and other (154)  (180)  (2,160)  (120)Total operating costs and expenses (166,978)  (158,523)  (313,428)  (292,601)Operating income 23,073   2,972   38,343   19,051 Non-operating income (expenses):           Interest income 243   1,328   517   2,916 Interest expense (32,504)  (33,646)  (64,982)  (68,437)Other financing costs (580)  (104)  (1,153)  (208)Foreign exchange gains (losses), net 8,758   (1,656)  10,729   (336)Loss on extinguishment of debt -   (869)  -   (869)Total non-operating expenses, net (24,083)  (34,947)  (54,889)  (66,934)Loss before income tax (1,010)  (31,975)  (16,546)  (47,883)Income tax expense (3,088)  (4,603)  (5,028)  (4,646)Net loss (4,098)  (36,578)  (21,574)  (52,529)Net loss attributable to participation interest 353   3,147   1,856   4,519 Net loss attributable to Studio City International Holdings Limited$(3,745) $(33,431) $(19,718)  (48,010)            Net loss attributable to Studio City International Holdings Limited per Class A ordinary share:         Basic and diluted$(0.005) $(0.043) $(0.026) $(0.062)            Net loss attributable to Studio City International Holdings Limited per ADS:           Basic and diluted$(0.019) $(0.174) $(0.102) $(0.249)            Weighted average Class A ordinary shares outstanding used in net loss attributable to Studio City International Holdings Limited per Class A ordinary share calculation:           Basic and diluted 770,352,700   770,352,700   770,352,700   770,352,700                    Studio City International Holdings Limited and SubsidiariesCondensed Consolidated Balance Sheets(In thousands, except share and per share data)             June 30, December 31, 2025 2024 (Unaudited)   ASSETS           Current assets:     Cash and cash equivalents$173,352  $127,634 Accounts receivable, net 1,743   1,976 Receivables from affiliated companies 254   309 Inventories 7,167   7,306 Prepaid expenses and other current assets 17,013   29,140 Total current assets 199,529   166,365       Property and equipment, net 2,550,836   2,652,169 Long-term prepayments, deposits and other assets 59,998   52,504 Restricted cash 129   130 Operating lease right-of-use assets 11,500   11,647 Land use right, net 99,857   102,629 Total assets$2,921,849  $2,985,444       LIABILITIES, SHAREHOLDERS’ EQUITY AND      PARTICIPATION INTEREST           Current liabilities:     Accounts payable$2,947  $3,285 Accrued expenses and other current liabilities 104,400   118,117 Income tax payable 12,554   7,626 Current portion of long-term debt, net 51,295   21,597 Payables to affiliated companies 37,164   30,131 Total current liabilities 208,360   180,756       Long-term debt, net 2,113,609   2,141,750 Other long-term liabilities 4,652   4,115 Deferred tax liabilities, net -   77 Operating lease liabilities, non-current 11,529   12,227 Total liabilities 2,338,150   2,338,925       Shareholders’ equity and participation interest:     Class A ordinary shares, par value $0.0001; 1,927,488,240 shares authorized;    770,352,700 shares issued and outstanding 77   77 Class B ordinary shares, par value $0.0001; 72,511,760 shares authorized;     72,511,760 shares issued and outstanding 7   7 Additional paid-in capital 2,477,359   2,477,359 Accumulated other comprehensive (losses) income (28,996)  8,701 Accumulated losses (1,915,127)  (1,895,409)Total shareholders’ equity 533,320   590,735 Participation interest 50,379   55,784 Total shareholders’ equity and participation interest 583,699   646,519 Total liabilities, shareholders’ equity and participation interest$2,921,849  $2,985,444         Studio City International Holdings Limited and SubsidiariesReconciliation of Net Loss Attributable to Studio City International Holdings Limited toAdjusted Net Loss Attributable to Studio City International Holdings Limited (Unaudited)(In thousands, except share and per share data)                         Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024            Net loss attributable to Studio City International Holdings Limited$(3,745) $(33,431) $(19,718) $(48,010)Pre-opening costs 314   747   469   806 Property charges and other 154   180   2,160   120 Loss on extinguishment of debt -   869   -   869 Income tax impact on adjustments -   (12)  (239)  (12)Participation interest impact on adjustments (41)  (154)  (206)  (154)Adjusted net loss attributable to Studio City International Holdings Limited$(3,318) $(31,801) $(17,534) $(46,381)            Adjusted net loss attributable to Studio City International Holdings Limited per Class A ordinary share:          Basic and diluted$(0.004) $(0.041) $(0.023) $(0.060)            Adjusted net loss attributable to Studio City International Holdings Limited per ADS:           Basic and diluted$(0.017) $(0.165) $(0.091) $(0.241)            Weighted average Class A ordinary shares outstanding used in adjusted net loss attributable to Studio City International Holdings Limited per Class A ordinary share calculation:           Basic and diluted 770,352,700   770,352,700   770,352,700   770,352,700               Studio City International Holdings Limited and SubsidiariesReconciliation of Operating Income to Adjusted EBITDA (Unaudited)(In thousands)                         Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024        Operating income$23,073 $2,972 $38,343 $19,051Pre-opening costs 314  747  469  806Depreciation and amortization 52,832  50,326  105,312  100,448Property charges and other 154  180  2,160  120Adjusted EBITDA$76,373 $54,225 $146,284 $120,425              Studio City International Holdings Limited and SubsidiariesReconciliation of Net Loss Attributable to Studio City International Holdings Limited to Adjusted EBITDA (Unaudited)(In thousands)                         Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024        Net loss attributable to Studio City International Holdings Limited$(3,745) $(33,431) $(19,718) $(48,010)Net loss attributable to participation interest (353)  (3,147)  (1,856)  (4,519)Net loss (4,098)  (36,578)  (21,574)  (52,529)Income tax expense 3,088   4,603   5,028   4,646 Interest and other non-operating expenses, net 24,083   34,947   54,889   66,934 Depreciation and amortization 52,832   50,326   105,312   100,448 Property charges and other 154   180   2,160   120 Pre-opening costs 314   747   469   806 Adjusted EBITDA$76,373  $54,225  $146,284  $120,425                        Studio City International Holdings Limited and SubsidiariesSupplemental Data Schedule                       Three Months Ended Six Months Ended   June 30, June 30,    2025   2024   2025   2024 Room Statistics:         Average daily rate (3)$163  $157  $166  $158   Occupancy per available room 97%  96%  98%  96%  Revenue per available room (4)$159  $150  $163  $151           Other Information:         Average number of table games 253   252   253   249   Average number of gaming machines 724   641   760   656   Table games win per unit per day (5)$14,143  $13,563  $13,734  $13,300   Gaming machines win per unit per day (6)$516  $476  $486  $456                     (3)Average daily rate is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total occupied rooms including complimentary rooms(4)Revenue per available room is calculated by dividing total room revenues including complimentary rooms (less service charges, if any) by total rooms available(5)Table games win per unit per day is shown before discounts, commissions, non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis(6) Gaming machines win per unit per day is shown before non-discretionary incentives (including the point-loyalty programs) as administered by the Gaming Operator and allocating casino revenues related to goods and services provided to gaming patrons on a complimentary basis

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