Water park to be key highlight of Studio City Phase 2 – CEO

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Macau (MNA) – The Chief Executive Officer of Melco International Development, Lawrence Ho Yau Lung, told MNA on Wednesday that the water park, which might be “one of the biggest” water parks in Asia, will be a highlight of the second phase of Studio City.

The second phase of Studio City is set to cost between US$1.35 billion (MOP10.9 billion) and US$1.4 billion, with Melco having been granted a development deadline for its land concession until July 24, 2021.

According to previous interviews given by Ho, the offerings for the second phase will also include two hotel towers, a gaming area, retail, food and beverage outlets and a home theatre.

“We are also building cineplexes, VIP cineplexes and IMAX, and that is also part of the non-gaming offerings, and so I think there is going to be a lot of excitement,” said Mr. Ho.

There have, however, been no updates on behalf of the Macau SAR Government to grant the necessary licenses to start on Studio City’s second phase of development.

According to the gaming mogul, the schematic designs and detailed designs have been finished and they are just awaiting approvals from the government in order to get a green light.

A trampoline park, named ‘Flip Out,’ which is part of Studio City’s first phase of development will be set to open “in the next few months,” said Mr. Ho.

In terms of projections of gross gaming revenues for 2019, Mr. Ho remains optimistic, despite lacklustre results in February and March.

Despite believing that 2018 was exceptional, due to an increase of 14 percent, the CEO said that 2019 will continue to be positive for the group, given the group’s higher reliance on mass and premium mass. “At Melco we care more about the underlying cash flow and EBITDA. And I think the quality of cash flow is now better than it has ever been, given the skew of business being on the mass side. So far the weakness we have seen in 2019 is really on the VIP side.”

“As a company Melco is, if not the least reliant, the second least reliant on VIP business. Our mass business is very strong and we have always been focused on mass and premium mass,” the businessman added.