SJM posts net gaming revenue of US$780m for 2022

Group-wide revenue stood at HK$6.67bn in full-year 2022.
Group-wide revenue stood at HK$6.67bn in full-year 2022.

Net gaming revenue was down 36.6 per cent when compared to the previous year.

Macau.- SJM Holdings has shared its financial results for the year 2022. Net gaming revenue was HK$6.1bn (US$780m), down by 36 per cent compared to a year earlier. The group’s EBITDA was negative HK$3.1m (US$394.3m), compared with negative HK$1.58m for 2021.

The company confirmed a loss attributable to its owners of HK$7.80bn, up 88.2 per cent from 2021. It reported it had a 15.8 per cent share of Macau’s gaming revenue, including 19.8 per cent of mass-market table gross gaming revenue and 4.9 per cent of VIP gross gaming revenue.

Grand Lisboa Palace generated gross revenue of HK$687m in 2022, with gross gaming revenue of HK$346m compared to HK$200m in 2021. Its adjusted property EBITDA was a negative HK$969m, after taking into account pre-opening expenses of HK$453m. 

Meanwhile, Hotel Grand Lisboa generated gross revenue of almost HK$1.20bn, including GGR of HK$1.07bn, down 50.4 per cent year-on-year. Adjusted property EBITDA was negative HK$758m in 2022 compared to negative HK$522m in 2021.

The Grand Lisboa Palace Resort’s occupancy rate declined by 16.5 percentage points to 32.2 per cent, while Hotel Grand Lisboa’s fell by 12.6 points to 46.2 per cent.

SJM Resorts took steps to rationalise its portfolio of gaming properties in 2022 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.

SJM Holdings had HK$8.01bn of cash, bank balances, short-term bank deposits and pledged bank deposits, and HK$31.78bn of debt as of December 31, 2022.

Macau casino operators to submit 2023 investment plans this month

Macau’s six casino concessionaires are set to submit their 2023 investment plans to the government for approval. Under the new concessions, operators have to submit annual execution proposals for 2023, outlining specific projects and proposed spending and execution schedules for the year. 

While the deadline for the submission of the proposals is usually up to three months before the start of each calendar year, this year’s deadline is later due to the new concessions starting in January. 

The government has two months to respond to each proposal and may request adjustments to specific projects or amounts invested. The operators must provide execution reports on the previous year’s proposal by March 31, with progress reports every two months.

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