GGRAsia – SJM Holdings 1H loss up slightly, as revenues increase 19%
SJM Holdings 1H loss up slightly, as revenues increase 19%
Macau casino operator SJM Holdings Ltd reported a net loss of nearly HKD 1.47 billion (US $ 188.5 million) in the first half, up from HKD 1.41 in the first six months of 2020. This is a turnover that has increased by 19.4% per year. over one year, to HKD 5.22 billion, the company said in a filing on the Hong Kong Stock Exchange on Tuesday.
Adjusted Group profit before interest, taxes, depreciation and amortization (EBITDA) for the second quarter was negative at HKD 510 million, an improvement over the negative result of HKD 984 million recorded the previous year.
The group’s adjusted EBITDA margin was 9.8%, down from 22.5% for the period a year earlier, the company said.
The company said the Covid-19 pandemic “continues to have a material adverse effect” on the company’s performance in the first half of the year. But he added that “some results showed an improvement compared to the first half of 2020”.
The board of directors of the company did not recommend an interim dividend for the six months until June 30.
The Group’s net gaming revenue for the six months ended June 30 increased 18.8% year-on-year to just below HKD 5.08 billion.
Mass-market table gross gaming revenue (GGR) grew 33.2% year-on-year to nearly HKD 4.39 billion. VIP gross revenue amounted to HKD 855.6 million in the period, down 37.5% from the previous year.
Slots revenue increased 12.7% year-on-year to HKD 264.6 million.
The existing self-promoted casinos of SJM Holdings are: Casino Grand Lisboa in Grand Lisboa (photo); Casino Lisboa inside the Lisboa hotel; Oceanus Casino at Jai Alai – including the gaming area in the Jai Alai building; Easter Casino; and Casino Taipa. As of June 30, the company also operated 14 third-party promoted gaming sites, that is, satellite casinos.
Gross gaming revenue at the group’s flagship casino, Grand Lisboa, fell 9.7% year-on-year to just under HKD 1.20 billion. The establishment’s casino adjusted EBITDA was negative at HKD 170 million, an improvement of 54.1% from the prior year period.
Outside the reference period, SJM Holdings launched friday the HKD 39 billion Grand Lisboa Palace, Macau’s newest casino complex, located on the Cotai strip of Macau. The executive director of the company Ms. Ho tell GGRAsia that the property could break even in a year “or less”, despite the difficult business environment due to the Covid-19 pandemic.
“SJM’s first half operating results reflect Macau’s cautious reopening for tourism,” the company’s vice president and general manager Ambrose So Shu Fai said on Tuesday in a separate statement.
“We expect continued growth in the second half of 2021 and we are very pleased that our Grand Lisboa Palace Resort is now open to accommodate the growing flow of visitors,” he added.