SJM Q3 EBITDA falls 20% as GGR grows excluding satellites
Cost controls and stronger non-satellite gaming revenue helped cushion the impact of softer market conditions and renovation works.
Key takeaways:
- SJM’s adjusted EBITDA fell 20 per cent year-on-year to HK$705m (US$90.4m).
- Reported GGR declined 23.9 per cent to HK$5.44bn (US$697m), while GGR excluding satellite casinos increased 13.5 per cent.
- Cost controls reduced the group’s average daily run-rate by 5 per cent sequentially.
- Revenue at SJM’s other properties rose 77.4 per cent to HK$2.45bn (US$313.7m).
Macau.- SJM Holdings has shared its financial results for the third quarter of the year. Gross gaming revenue (GGR) fell 23.9 per cent year-on-year to HK$5.44bn (US$697m) and adjusted EBITDA declined 20 per cent to HK$705m (US$90.4m). The company said softer market conditions and temporary disruption from renovation work affected performance during the quarter.
Excluding satellite casinos, GGR increased 13.5 per cent year-on-year from HK$4.79bn in the third quarter of 2025 to HK$5.44bn (US$697m). The adjusted EBITDA margin improved by 0.8 points to 13.3 per cent.
Sequentially, total Q3 GGR fell 8.6 per cent, a steeper drop than the overall industry GGR decline of 3.8 per cent amid the impact of the World Cup. The company attributed this to weaker market conditions, renovation work in the mass gaming area at Grand Lisboa Palace Resort Macau, reduced hotel room inventory at Grand Lisboa and a lower rolling win rate.
Daisy Ho, chairman of SJM Holdings and managing director of SJM Resorts, said: “The third quarter was marked by softer market conditions and the temporary impact of renovation works across our portfolio. We are maintaining disciplined cost management and advancing operational optimisation initiatives to protect margins and improve efficiency. As we continue to enhance our assets and refine our operating model, we remain focused on improving returns on invested capital and driving sustainable long-term growth.”
The group’s market share stood at 9.3 per cent in the third quarter, down from 11.8 per cent a year earlier due to the closure of its satellite casinos. Cost controls reduced the group’s third-quarter average daily run-rate by 5 per cent sequentially, while revenue from hotel, catering, retail, leasing and related services increased 6.6 per cent year-on-year to HK$530m (US$67.9m). Average hotel occupancy remained unchanged at 94.4 per cent.
For the first nine months of 2026, adjusted EBITDA declined 4.8 per cent year-on-year to HK$2.41bn (US$308.5m). The adjusted EBITDA margin increased by 2.6 percentage points to 14.3 per cent due to the cessation of lower-margin satellite casino operations.
Grand Lisboa Palace Resort Macau recorded revenue of HK$1.71bn (US$219.5m) during the quarter, down 10.3 per cent year-on-year. SJM attributed the decline to temporary disruption from phased renovation works in the mass gaming area and higher volatility in rolling revenue.
Grand Lisboa Macau generated revenue of HK$1.81bn (US$231.8m) and adjusted property EBITDA of HK$357m (US$45.8m). Hotel occupancy remained near capacity at 98.6 per cent. SJM said refurbishment work on the deluxe villas and mansion remains on track for completion ahead of the 2027 Lunar New Year. Once work is completed, room capacity is expected to be approximately 12 per cent higher than at the end of 2026.
The combined revenue of Casino Lisboa, Casino Oceanus at Jai Alai and Casino L’Arc Macau rose 77.4 per cent year-on-year to HK$2.45bn (US$313.7m), while adjusted property EBITDA increased 46 per cent to HK$438m (US$56.2m). The second phase of the Crystal Palace gaming area at Casino Lisboa Macau opened on August 10, with 22 gaming tables. Further expansion is expected through 2027.
