SJM Holdings posts net loss of US$351.2m for H1
The casino operator revenue fell 20.9 per cent year-on-year to HK$4.13bn (US$525.9m).
Macau.- SJM Holdings has reported a net loss of nearly HK$2.76bn (US$351.2m) for the first half of the year. The figure was up 88 per cent when compared to losses recorded in the first half of 2021 (HK$1.46bn).
Both the mass-market and VIP gaming segments performed below expectations, resulting in revenue falling 20.9 per cent year-on-year to HK$4.13bn (US$525.9m). Adjusted EBITDA came in at HK$1.18bn in compared to negative HK$510m recorded in the prior-year period.
Net gaming revenue was up 24.9 per cent year-on-year to HK$3.81bn while mass-market table GGR was down 21.7 per cent to HK$3.44bn. VIP gross revenue for the first half stood at HK$386.9m, down 54.8 per cent, while revenue from slot machines was down 6.3 per cent year-on-year to HK$248m.
According to the company, the Covid-19 pandemic continued to negatively impact on its first-half results.
SJM Holdings said: “We do not expect a return to our pre-pandemic level of revenue during 2022. Even after travel restrictions are lifted, moreover, it is not possible to predict whether there will be lingering economic effects and health concerns caused by Covid-19 that will affect our business for a longer period.”
In June, the casino operator issued a company filing announcing that it has reached an agreement with a banking syndicate led by Industrial and Commercial Bank of China (Macau) for syndicated loan facilities worth up to HK$19bn (US$2.4bn).
According to SJM, a substantial portion of the new loan facilities will be used to repay the existing syndicated loan facilities entered into by SJM Resorts in September 2016. After the refinancing, SJM Resorts will have an additional HK$6bn of liquidity.
