SJM Holdings reports net loss of US$530.3m for 2021

SJM opened its Grand Lisboa Palace venue in 2021.
SJM opened its Grand Lisboa Palace venue in 2021.

The Macau casino operator has reported a net loss of HKD4.14bn (US$530.3m) for the year.

Macau.- SJM Holdings has reported a full-year loss of HKD4.14bn (US$530.3m) for 2021, compared with a loss of HKD3.03bn for 2020. It blamed ongoing disruptions to tourism due to the Covid-19 pandemic.

Net gaming revenue in 2021 increased by 31.5 per cent year-on-year to nearly HKD9.61bn. The group’s EBITDA loss narrowed by 24.3 per cent to HKD1.58bn. Grand Lisboa Palace saw gross revenue of HKD370m, including HKD200m in gross gaming revenue (GGR). 

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was a negative HKD423m after adjusting for pre-opening expenses of nearly HKD1.03bn.

SJM revealed it accounted for 12.3 per cent of Macau’s gross gaming revenue in 2021, including 16.3 per cent of mass-market table gaming revenue and 4.9 per cent of VIP gaming revenue. Company-wide gross gaming revenue in 2021 increased by 25.3 per cent year-on-year to HKD10.37bn.

Revenue from the VIP segment fell 33.3 per cent year-on-year to nearly HKD1.36bn. Mass market table gaming revenue was up 44.6 per cent to HKD8.47bn. Revenue from slot machines and other gaming operations was up 41.6 per cent year-on-year to HKD537.1m in 2021.

Grand Lisboa Palace had a partial opening in July. When complete, it will have around 2,000 hotel rooms split between three venues: The Lisboa Palace Hotel, Palazzo Versace Macau, and Karl Lagerfeld Hotel luxury boutique hotel.  It will have 27,000 square metres of gaming floor (290,000 sq ft) for up to 700 gaming tables and 1,200 electronic gaming machines.

Moody’s downgrades SJM Holdings ratings

Moody’s Investors Service has downgraded SJM Holdings Ltd‘s corporate family rating and the company’s senior unsecured rating on its guaranteed bonds. The agency said in a report that the downgrade reflected “continued delays” in the execution of the company’s refinancing plan.

SJM Holdings’ corporate family rating was downgraded from Ba1 to Ba2 while the senior unsecured rating on the notes issued by Champion Path Holdings Ltd and guaranteed by the casino company was downgraded to “Ba3”.

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