Crown Resorts Ltd. used to be a thriving company but unfortunately it had, to a certain extent, lost its consolidated positions on the market during the last couple of months.
Nevertheless, Crown resorts’ executives remained determined to bring their lost positions back and concentrate their efforts on expanding their business in the Asian gambling Mecca – Macau.
But how profitable this venture is going to be for Melco and Crown and whether investors would get their money worth?
That is a delicate question which does not have an explicit answer due to a number of favorable and unfavorable factors that have impact on the Macau project.
It is a well-known fact that overall, the casino sector in Macau was not too profitable in 2014, which made the investors become suspicious towards the success of the project.
Actually, their doubts and arguments are not groundless since the previous year was marked by a decrease of 2.6%, which made them question the profitability of the future casino property.
In addition, the share price of the six casino operators listed in Hong Kong collapsed by 40%.
Mr. James Packer and his business ventures have been making the headlines recently and the one that involves his partnership with Lawrence Ho, is believed to boost the profits of Melco Crown and resist the tough competition by providing exclusive gaming and entertainment options to the visitors.
According to the information revealed by Lawrence Ho himself, Studio City is to be completed within a few months and the feature that is said to make the property attractive will be its “family-oriented” style.
In order to achieve that, officials will ensure entertainment options provided by Warner Bros and DC Entertainment.
Bearing in mind the fact that Mr. Packer is a co-chairman of Melco Crown and a key figure on the Australian gambling market, it is not a surprise that Studio City will be a “family-friendly” resort.
James Packer has already found out that a “family-featured” resort is more frequently visited and therefore profitable. And that is not all.
It is common knowledge that Macau-based venues rely on high roller players in order to report satisfactory revenues. Since the aim of Studio City managers is to avoid counting on high roller players for generating a stable revenue, they settled down around the idea for establishing a “family-friendly” resort.
Having an ace up its sleeve, Crown Resorts Ltd. is expected to make its new venue a thriving one and make both investors and players glad for being a part of Studio City.
