Overview Key strengths Key risks Solid presence in Macao, the world's largest gaming market, with good long-term growth prospects. Significant revenue volatility because the gaming industry is vulnerable to economic cycles and social risks, and all of Studio City's earnings are from a single casino in the competitive Macao market. Likely support from parent Melco Resorts&Entertainment Ltd. (MLCO). Bumpy recovery of the tourism industry in Macao amid the pandemic. Execution risks in ramping the mass business associated with the Studio City Phase II project. High leverage due to elevated capital expenditure (capex). Surge in COVID-19 cases in China to slow Macao's recovery. The current COVID situation and control measures in China have reduced the number of mainland Chinese
