Studio City International Holdings Limited (MSC): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the current financial reality for Studio City International Holdings Limited, and honestly, looking at their late-2025 structure, the strategy is crystal clear: they are aggressively leaning into the premium mass segment while funding their massive Phase 2 assets. We see this in the Q3 2025 results, where the core gaming engine generated over US\$942.5 million in mass market table drop, but the non-gaming side is growing fast at US\$105.2 million, all while servicing significant debt reflected in the US\$30.9 million interest expense. This Business Model Canvas distills exactly how their key resources, like the new indoor water park and the W Macau, are being positioned against their value proposition to capture that specific player base. Check out the nine building blocks below for the precise data driving this Cotai operation.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships that underpin Studio City International Holdings Limited's operations in late 2025. These aren't just names on a page; they represent the regulatory backbone and operational scaffolding for the Cotai integrated resort.

Majority Ownership and Corporate Structure

Melco Resorts & Entertainment Limited is the majority owner of Studio City International Holdings Limited, whose American depositary shares trade on the NYSE under MSC. This relationship means that Studio City's strategic direction is deeply integrated with the broader Melco Resorts strategy, which itself is majority-owned by Melco International Development Limited.

• Melco Resorts & Entertainment Limited is the majority owner of Studio City International Holdings Limited.
• Melco International Development Limited owns 51.2% of Melco Resorts & Entertainment Limited.
• Studio City International Holdings Limited reported total operating revenues of US$182.5 million for the third quarter of 2025.

Gaming Operator Agreement

The actual day-to-day running of the gaming floor is handled by a specific subsidiary of the majority owner. Melco Resorts (Macau) Limited acts as the official Gaming Operator for the Studio City Casino. This partnership structure has direct financial implications on reported revenue.

Revenue from casino contract is reported net of gaming taxes and the operational costs incurred by the Gaming Operator. For the third quarter of 2025, revenue from casino contract was US$77.3 million.

Regulatory Relationship with Macau SAR Government

The entire operation is contingent upon the gaming concession granted by the Macau SAR Government. Studio City is operating under the new 10-year gaming concessions that began on January 1, 2023. This relationship involves significant financial commitments and reversion clauses.

Concessionaires must pay a special gaming tax of 35% of GGR plus an additional 5% of GGR in contributions for Macau CSR. Furthermore, Studio City Developments Limited and the Gaming Operator executed an undertaking for the gaming areas to revert to the Macau SAR government without compensation upon expiration.

Under the terms of the new concession, Studio City agreed to rent back its casino areas, which involved a specific fee structure:

• First year annual fee: MOP$57.9 million (US$7.2 million).
• Fee from the fourth year: MOP$192.9 million (US$24.1 million).

Strategic Partnership with iRad for Medical Center

A key non-gaming partnership involves iRad, which opened a private hospital focused on imaging and diagnostic medical services at Studio City in October 2025. This facility occupies 12,618 square feet (1,172 sq. metres). The agreement is effective from January 1, 2025, and runs until November 30, 2034.

The financial arrangement for the operation is performance-based:

• iRad pays a fixed base fee of MOP 694,981 ($86,178) per month or 1.5% of monthly turnover, whichever is greater.
• Studio City Retail Services Ltd (SCRS) purchases and installs the medical equipment.
• Melco stated expected support allocation is approximately 8% towards capital expenditures and 92% towards operational expenses for the center.

Finance: review the Q4 2025 cash flow projection to account for the full quarter's operational costs related to the iRad partnership by next Tuesday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Key Activities

You're looking at the core things Studio City International Holdings Limited (MSC) has to do every day to make its business model work, based on their latest filings through Q3 2025. Honestly, it's all about balancing the high-volume mass market gaming with the big-ticket hospitality and entertainment draws in Cotai.

Operating the integrated resort and hospitality services

This is the foundation, making sure the whole complex runs smoothly, from the rooms to the back-of-house operations. For the third quarter of 2025, total operating revenues hit US$182.5 million, which was up from US$174.6 million in the same period last year. That shows they're definitely driving more top-line business. To support this, Studio City International Holdings Limited manages approximately 1,600 luxury hotel rooms. The overall financial health, looking at the nine months ending September 30, 2025, shows trailing twelve months revenue of US$687.15 million. The operational efficiency is reflected in the Adjusted EBITDA, which reached US$78.1 million in Q3 2025.

Here's a quick look at the revenue trend across the first three quarters of 2025:

Managing mass and premium mass gaming floor operations

Studio City International Holdings Limited has strategically focused on the mass and premium mass segments, especially after transferring VIP rolling chip operations in late October 2024. The core activity here is driving volume through table games and slot machines, which is clear when you look at the drop and handle figures. For Q3 2025, mass market table games drop was US$942.5 million, with a healthy hold percentage of 33.1%. Plus, gaming machine handle for that quarter was US$873.3 million, with a win rate of 3.7%.

The direct revenue impact from these activities, reported as revenue from casino contract (net of taxes and operator costs), was US$77.3 million in Q3 2025. The gross gaming revenues for the Studio City Casino in Q3 2025 were US$344.4 million. It's defintely worth noting the shift in focus:

• Mass market table games drop in Q2 2025 was US$958.2 million.
• Gaming machine handle in Q2 2025 reached US$916.1 million.
• The company operates 250 mass market gaming tables.
• Following a September 2025 closure, 90 gaming machines were re-allocated to Studio City.

Developing and hosting large-scale non-gaming entertainment

Keeping the resort world-class means constantly delivering on the non-gaming side, which is a significant revenue driver. Total non-gaming revenues for Q3 2025 were US$105.2 million. That's a solid number, even if it was slightly down from Q3 2024's US$107.3 million. The Q2 2025 non-gaming revenue was actually higher at US$106.3 million, showing the variability in this segment.

The assets used to drive this activity include:

• The world's first figure-8 Ferris wheel.
• A deluxe night club and karaoke facilities.
• A 5,000-seat live performance arena.
• An outdoor water park.

Marketing and promoting the Cotai destination globally

While specific marketing spend figures aren't detailed in the earnings reports, the activity is evidenced by the results in driving visitation and spend across the resort. The focus is on promoting the entire Cotai destination, which benefits MSC as a major integrated resort player there. The growth in mass market performance across Q1, Q2, and Q3 2025, with mass table drop increasing year-over-year in Q3 2025 to US$942.5 million, suggests successful attraction of the target customer base to the Macau/Cotai area. The company's status as a world-class integrated resort, majority owned by Melco Resorts & Entertainment Limited, is a key part of this promotional positioning.

Finance: draft 13-week cash view by Friday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Key Resources

You're looking at the core assets that power Studio City International Holdings Limited's operations in Cotai, Macau. These aren't just buildings; they are the physical and licensed foundations for their entertainment and gaming revenue streams.

Integrated resort property in Cotai, Macau

• Location: Estrada do Istmo, Cotai, Macau.
• Original opening date: October 27, 2015.
• Total hotel rooms: 2,495 rooms across four towers.

The total room inventory is broken down by tower:

Phase 2 expansion assets (Epic Tower, Indoor Water Park, W Macau)

The US$1.3 billion Studio City Phase 2 development brought significant capacity additions, which began opening in stages in 2023.

• Total Gross Floor Area of Phase 2: approximately 250,000 square meters.
• Phase 2 hotel capacity: Two new towers adding 900 rooms and suites total.
• Phase 2 retail and dining space: Over 21,000 square meters.
• Phase 2 gaming space: Over 2,300 square meters.

The Epic Tower, one of the Phase 2 additions, debuted with 338 suites. The W Macau, the second new hotel tower, debuted later with 557 rooms. The first Phase 2 facilities, including the Indoor Water Park, opened on April 6, 2023.

Non-gaming attractions (Golden Reel Ferris wheel, 5,000-seat arena)

Studio City International Holdings Limited emphasizes these non-gaming assets to support Macau's tourism diversification goal. The Golden Reel, a figure-8 Ferris wheel, is a signature feature.

• Studio City Indoor Water Park features 16 attractions.
• Water Park features include seven state-of-the-art water slides.
• Water Park features include two wave pools and a 250-meter action river.
• The resort also houses a live performance arena with a 5,000-seat capacity.

Gaming table and machine allocation from the Macau government

The gaming capacity is a critical, government-controlled resource. Note that VIP rolling chip operations were transferred to City of Dreams in late October 2024, shifting the focus to mass market operations.

The initial allocation included 1,233 gaming machines, and 50 tables were authorized to start operations in January 2016. Studio City's mass market table games drop for Q3 2025 was US$942.5 million, with a hold percentage of 33.1%.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Value Propositions

You're looking at the core value Studio City International Holdings Limited (MSC) offers its customers as of late 2025, grounded in their latest reported performance.

Cinematically-themed, world-class integrated resort experience

The resort offers a distinct, film-themed environment, which is supported by specific entertainment assets brought online through its Phase 2 expansion.

• Studio City Indoor Water Park features 16 attractions.
• The water park includes seven state-of-the-art water slides.
• The park has a 250-meter action river called Starlight Rapids.
• The property includes a six-screen Cineplex.

High-quality gaming focused on the mass and premium mass segments

Studio City International Holdings Limited has strategically repositioned its gaming focus away from VIP rolling chips, concentrating instead on the mass and premium mass market segments. This shift is reflected in the Q3 2025 operational metrics.

For comparison, the mass market focus was also evident in Q2 2025, where Mass GGR grew year-on-year, and the mass market table games drop was US$958.2 million.

Diverse, all-weather non-gaming entertainment for families and leisure

The non-gaming component provides year-round attractions, which contributed significantly to total operating revenues.

• Total non-gaming revenues for Q3 2025 were US$105.2 million.
• Total operating revenues for Q3 2025 reached US$182.5 million.
• Adjusted EBITDA for Q3 2025 was US$78.1 million.

Luxury hotel accommodation with 900 new rooms from Phase 2

The expansion added substantial luxury accommodation capacity to the resort portfolio, enhancing its appeal as an integrated resort destination.

Finance: review Q4 2025 revenue projections based on current mass market trends by next Tuesday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Customer Relationships

You're looking at how Studio City International Holdings Limited (MSC) keeps its patrons engaged, especially now that the focus has sharpened post-VIP segment transfer. The relationship strategy is clearly tiered, matching the service intensity to the expected revenue contribution from each customer group.

Dedicated service and loyalty programs for premium mass players

MSC definitely tailors its approach for the premium mass market patrons. These customers are recognized and incentivized through gaming loyalty programs segmented into several tiers. Members earn points based on their gaming spending, which they can swap for retail gifts or complimentary vouchers usable across the resort's restaurants, bars, shows, and hotel. This structure is designed to maximize repeat visits and spending.

For the most valuable of these premium mass players, the relationship moves beyond points. Dedicated customer hosting programs are in place, giving these patrons exclusive access to private luxury gaming salons. This high-touch service aims to build strong, sticky relationships. It's worth noting that high-performing loyalty programs, in general, can increase annual revenue from redeeming customers by 15% to 25%, which is the kind of lift MSC is targeting with its tiered structure. Also, 77% of consumers stay loyal to their favorite brand for a decade or longer, showing the long-term value of these dedicated efforts.

High-touch, personalized service in luxury hotel suites

The non-gaming side mirrors this segmentation. Studio City International Holdings Limited boasts 2,493 luxury hotel rooms. For guests occupying these premium spaces, the service is inherently high-touch. While specific 2025 data on personalized suite services isn't public, the Average Daily Rate (ADR) for rooms in Q2 2025 was $163, with occupancy hitting 97%, indicating strong demand for the premium accommodation experience. Personalized service here means anticipating needs, from bespoke dining reservations to exclusive access to resort attractions like the figure-8 Ferris wheel. The goal is to make the experience seamless and memorable, which drives the overall spend at the property.

Transactional and self-service for general mass market visitors

For the broader mainstream mass market, the relationship is more transactional and relies on efficient self-service options. These patrons come for the general brand appeal and the comfort of the mass market gaming offerings. The focus here is on maximizing table utilization and productivity, as evidenced by the 253 average table games in Q3 2025. The relationship is maintained through the accessibility of the standard gaming floor and the basic redemption of loyalty points. The sheer volume of this segment is key; for instance, mass market table games drop reached $942.5 million in Q3 2025. You want these interactions to be quick and easy so they can get back to gaming or enjoying the attractions.

Here's a quick look at how the service levels map across the core gaming segments:

Digital engagement via MelSuite system in new hotel rooms

Studio City International Holdings Limited is also pushing digital engagement, particularly within its accommodations. The MelSuite system is integrated into new hotel rooms to enhance the guest experience digitally. While I don't have the specific 2025 adoption rate or usage statistics for MelSuite right now, the trend across the industry shows that 80% of consumers are more likely to engage with companies offering personalized digital experiences. This system is definitely the vehicle for delivering that personalization, likely offering in-room controls, service requests, and entertainment options directly through a digital interface. This digital layer helps bridge the gap between the high-touch physical service and the self-service needs of the modern traveler.

To keep things moving, Finance: draft the Q4 2025 customer retention projection based on Q3 loyalty point redemption rates by Friday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Channels

You're looking at how Studio City International Holdings Limited moves its offerings-rooms, entertainment, and gaming-to the customer. It's a mix of high-traffic physical presence and targeted outreach, especially now that the focus has shifted.

The primary channel is the physical integrated resort location in Cotai, Macau. This is where the majority of gaming and a significant portion of non-gaming revenue is realized. The resort itself is the main point of sale for the entire value proposition.

The Q3 2025 results clearly show the volume moving through this physical channel, heavily weighted toward the mass market segment following the strategic repositioning away from VIP rolling chip operations, which were transferred to City of Dreams in late October 2024. Here's a look at the gaming volume figures for the third quarter of 2025, which are realized directly on the casino floor:

This volume underpins the revenue generated through the physical channel. The total operating revenues for Q3 2025 reached US$182.5 million.

For the non-gaming side, which includes hotel and shows, the channels are more diversified, though specific breakdowns aren't always public. We know the resort relies on driving traffic to its physical assets. The direct online booking platforms for hotel and shows are a crucial component for capturing direct consumer spend, aiming to maximize margin by bypassing intermediaries. The resort's strategy is clearly geared toward the mass segment, which often uses direct channels for leisure bookings.

The reliance on intermediaries like global travel agencies and tour operators remains standard for integrated resorts to fill room inventory and drive package tours, especially for international visitors. While the VIP segment was offloaded, these partners still serve the premium mass and leisure segments that Studio City International Holdings Limited targets.

Furthermore, direct sales teams targeting premium mass and MICE groups are essential for securing larger, pre-booked blocks of business, which stabilizes occupancy and non-gaming revenue streams. The MICE segment feeds directly into the non-gaming revenue, which was US$105.2 million in Q3 2025. This direct sales effort is how Studio City International Holdings Limited secures large corporate or group bookings that might not come through standard online or agency channels.

Financially, the management of capital structure also impacts channel strategy by freeing up cash flow. Studio City International Holdings Limited completed the repayment of US$221.6 million principal amount outstanding under its 6.00% senior notes due 2025 on July 15, 2025. That's a major cash event.

You can think of the channel mix like this:

• Direct Online/Walk-in: Captures the highest margin for transient hotel and gaming spend.
• Travel Agencies/Tour Operators: Provides necessary volume and broad market reach.
• Direct Sales Teams: Secures high-value, pre-committed MICE and premium mass business.

Finance: draft 13-week cash view by Friday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Customer Segments

You're looking at the core groups Studio City International Holdings Limited is targeting now that they've made that big pivot away from high-roller VIPs. The strategy is clear: focus on volume and non-gaming spend, which makes sense given the market dynamics in Cotai.

Mass Market gamblers from mainland China and the region represent the bread-and-butter of the current operation. This segment is the primary driver of the casino contract revenue, which was US$77.3 million in the third quarter of 2025. This is up from US$62.1 million in the second quarter of 2024, showing the shift is paying off in that revenue line.

The Premium Mass gamblers (strategic focus since late 2024) are the next tier up within that mass focus. Studio City International Holdings Limited officially transferred its VIP rolling chip operations to City of Dreams in late October 2024 to concentrate resources here. This means the premium mass player is now the highest-value gaming customer on site.

Here's a quick look at the scale of the mass market gaming activity in Q3 2025, which is where the bulk of the action is now:

The Regional and international leisure tourists and families, along with the Convention, Incentive, and Exhibition (MICE) attendees, are grouped together as the non-gaming customer base. These segments fuel the non-gaming side of the integrated resort. Total non-gaming revenues were US$106.3 million in the second quarter of 2025, contributing to the total operating revenues of US$182.5 million reported for the third quarter of 2025.

To be fair, separating the MICE spend from general leisure tourist spend in the public filings isn't always straightforward, so we look at the total non-gaming performance as the proxy for these groups:

• Non-gaming revenues in Q2 2025 were US$106.3 million.
• Total operating revenues in Q3 2025 reached US$182.5 million.
• The mass market table games hold percentage in Q3 2025 was 33.1%.

Finance: draft 13-week cash view by Friday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the operational expenses for Studio City International Holdings Limited (MSC) as of late 2025. The cost structure is heavily influenced by debt servicing and the regulatory environment in Macau.

The Significant interest expense is a major fixed cost component. For the third quarter of 2025, this figure stood at US$30.9 million. This reflects the ongoing cost of servicing the substantial debt load, which was reported net of deferred financing costs and premiums at US$2.06 billion at the end of Q3 2025.

Gaming taxes and concession fees to the Macau government are a direct variable cost tied to gaming revenue. The financial reporting shows that the combined figure for total gaming taxes and the costs incurred in connection with the on-going operation of the Studio City Casino was US$260.2 million for the first quarter of 2025. This combined cost was US$275.8 million in the second quarter of 2025. Revenue from the casino contract is reported net of these gaming taxes and operating costs.

High property operating costs and utility expenses are embedded within the figures above, as specific line-item breakdowns for just property and utilities aren't separately itemized in the latest releases. You see the impact of running a massive integrated resort, but the precise split between utilities, maintenance, and other property overhead isn't isolated for you here. It's part of the operational drag that reduces the gross casino contract revenue down to the reported contract revenue figure.

Labor costs for a large hospitality and gaming workforce are also a substantial, though not explicitly quantified, expense. The Master Services Agreements mean that personnel costs for corporate and administrative functions are charged back to Studio City International Holdings Limited. Given the scale of the resort, including hotel rooms, attractions, and the casino floor, this represents a significant fixed and semi-variable cost base that supports the entire operation.

Here's a quick look at some of the key reported costs and revenues for the first three quarters of 2025:

You'll note that the interest expense is relatively stable, which is typical for debt servicing, but the combined gaming tax/operating cost line item is quite large relative to the net casino contract revenue.

The primary cost drivers you need to track are:

• Interest Expense: Quarterly cost around US$30 million to US$33 million.
• Gaming Taxes & Operating Costs: Fluctuating quarterly costs in the hundreds of millions.
• Labor: Significant, but hidden within service charges.
• Property/Utilities: Substantial, also embedded in operating costs.

Finance: draft 13-week cash view by Friday.

Studio City International Holdings Limited (MSC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Studio City International Holdings Limited brings in the cash flow, and as of late 2025, the picture is clearly split between the gaming concession and everything else they offer.

The revenue streams are anchored by the casino contract, which is a significant, though perhaps less volatile, source of income compared to direct gaming win. For the third quarter of 2025, the Revenue from casino contract hit US$77.3 million. This figure is net of gaming taxes and operational costs paid to the Gaming Operator, Melco Resorts (Macau) Limited, so it represents the direct revenue share Studio City International Holdings Limited receives from the gaming operations.

Still, the non-gaming side is actually the larger component of the total operating revenue reported for Q3 2025. Non-gaming revenues for the third quarter of 2025 totaled US$105.2 million. This is a critical area for the integrated resort model, showing that the non-gaming offerings are driving the majority of the top line.

Here's a quick look at the key revenue drivers we have hard numbers for from the third quarter of 2025:

The Mass market table games drop, which is the total amount wagered at mass market tables before accounting for the house win percentage, was US$942.5 million in Q3 2025. That drop volume is a key indicator of customer activity, even though the actual revenue recognized is based on the hold percentage, which was 33.1% for that quarter.

The non-gaming revenue bucket, the Hotel, Food & Beverage, Retail, and Entertainment sales, is what makes up that US$105.2 million figure. You can expect the breakdown to show a mix of contributions from these segments, especially given the investments in new features like the Indoor Water Park and the Epic Tower hotel construction.

To put this in perspective, the total operating revenues for Studio City International Holdings Limited in Q3 2025 were US$182.5 million. That means the non-gaming segment accounted for about 57.6% of the total operating revenue for the period, which is a strong indicator of diversification.

You should keep an eye on these components:

• Revenue from casino contract: US$77.3 million (Q3 2025)
• Total Non-gaming revenues: US$105.2 million (Q3 2025)
• Mass market table games drop: US$942.5 million (Q3 2025)
• Hotel, Food & Beverage, Retail, and Entertainment sales (component of non-gaming)

Finance: draft 13-week cash view by Friday.