Macau casinos: SJM posts net profit of US$13m for Q3
The profit compares to a net loss of HK$410m in the same quarter last year.
Macau.- SJM Holdings has shared its financial results for the third quarter of the year. The company posted a profit attributable to owners of HK$101m (US$13m). That compares with a loss of HK$410m (US$52.78m) a year earlier.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at HK$1.04bn (US$133m), compared with HK$566m (US$73m) in the same period last year. That’s a rise of 83 per cent in year-on-year terms.
Net revenue was HK$7.5bn (US$965.35m), a rise of 27.8 per cent. Net gaming revenue was up 29 per cent year-on-year to HK$6.99bn (US$899m). Gross gaming revenue (GGR) was up 30.8 per cent year-on-year and 8.7 per cent sequentially at HK$7.4bn (US$951.14m). The GGR for self-promoted casinos rose by 38 per cent year-on-year to HK$4.7bn (US$603.47m).
SJM’s market share of GGR rose from 12.1 to 13.9 per cent. The company attributed the growth to the performance of Grand Lisboa Palace Resort Macau.
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Grand Lisboa Palace generated gross revenue of HK$1.7bn (US$228m), with GGR of HK$1.4bn (US$183m) and non-gaming revenue of HK$354m (US$45.5m). Adjusted property EBITDA was HK$165m (US$21m), compared with negative HK$27m (US$3.5m) in the third quarter of 2023. The occupancy rate was 98.9 per cent (85.4 per cent in the third quarter of 2023).
For the first nine months of the year, Grand Lisboa Palace achieved gross revenue of HK$4.7bn ($608m), with HK$3.75bn (US$482m) from gaming and HK$985m (US$127m) from non-gaming.
Hotel Grand Lisboa generated a gross revenue of HK$2bn (US$257m). GGR reached HK$1.9bn (US$249m) and non-gaming revenue HK$74m (US$9.4m). Adjusted property EBITDA was HK$545m (US$69.5m), up from HK$373m (US$47.6m) a year earlier. The hotel’s occupancy rate reached 98.9 per cent (98.4 per cent in the third quarter of 2023).
Cumulatively, Grand Lisboa’s gross revenue amounted to HK$5.8bn (US$740m) in the first nine months of the year, with HK$5.6bn (US$715m) from gaming and HK$214m (US$27.3m) from non-gaming.
Daisy Ho, chairman of SJM Holdings Limited and managing director of SJM Resorts, said: “It gives me pleasure to report the unfolding potential of the Grand Lisboa Palace Resort, with its ramp-up underlining the Group’s strong turnaround from challenging times to renewed growth.
“In the coming quarters, SJM will launch a series of key visitation drivers to strategically enhance our offer mix, including a diversified pipeline of dining options, increased MICE capacity at Grand Lisboa Palace, and a 10 per cent expansion in hotel capacity at Grand Lisboa. With continued quarter-on-quarter and year-on-year growth in GGR, I am confident that our investments in both people and properties will yield sustained, long-term value.”