SJM Holdings expects to record US$993m loss for 2022
The increased loss is the result of additional impairment charges related to the refurbishment of its Jai-Alai property.
Macau.- SJM Holdings has announced that it expects a loss of HKD7.8bn (US$993m) for 2022. The loss has been attributed to impairment charges made to rationalise and reassess the group’s casino business.
In a filing with the Hong Kong Stock Exchange, SJM Holdings reported that an impairment charge of HK$1.21bn included the cost of refurbishments made to the Jai-Alai Building over several years. An additional impairment charge of HK$4.7m relates to the closure of five third-party-owned and two self-promoted casinos.
SJM Resorts took steps during 2022 to rationalise its portfolio of gaming properties to improve operational efficiency in preparation for its new gaming concession. Casino Babylon, Casino Diamond, Casino Golden Dragon, Casino Million Dragon and Casino Royal Dragon and the self-promoted casinos Casino Eastern and Casino Taipa were closed on 27 December 2022.
The casino operator has recently signed a new lease agreement with co-chair and managing director Angela Leong On Kei to lease spaces at the Jai Alai Oceanus complex until the end of 2025.
SJM Holdings’ results for the year ending 31 December 2022 are expected to be announced on March 9. In 2021, the company reported a full-year loss of HK$D4.14bn (US$530.3m) for 2021, compared with a loss of HK$3.03bn for 2020. Net gaming revenue in 2021 increased by 31.5 per cent year-on-year to nearly HKD9.61bn.