Construction disruptions next to Melco Crown’s new Studio City are continuing to hurt the property’s ramp up, said Sterne Agee CRT in a note on Monday.
The U.S. based brokerage said it continues to believe Studio City is best positioned for the longer-term, however “ongoing construction on both sides of the property combined with a relatively flattish (+2 percent QoQ) sequential revenue environment [will] likely stall a significant near-term property ramp [up].”
Sterne Agee CRT said that it adjusted 1Q16 property EBITDA for Studio City significantly, from $40.2 million to $22.6 million.
Studio City, the $3.2 billion cinematically-themed leisure resort and casino opened its doors in October 2015. The resort is known for its focus on the mass market, complying with the government’s push to broaden the tourism base.
The property does not have any VIP gaming facilities, but in a note following its opening, UBS analyst Robin Farley said “there might be some VIP action on the 2nd floor in the future.”