SJM Holdings sees profit rise during first quarter

Macau casino operator SJM Holdings had its profits rise 25.9 per cent year-on-year during the first quarter of 2018.

Macau.- SJM Holdings reported a year-on-year profit rise of 25.9 per cent during the first quarter to reach €77.3 million. The increase, reported in a Wednesday filing to the Hong Kong Stock Exchange, was calculated from last year’s €61.4 million profit and reflected a good quarterly overall performance for the company.

Gross gaming revenue (GGR) also increased by 4.6 per cent year-on-year, to €1.15 billion, mainly boosted (36 per cent of the group’s GGR) by the Casino Grand Lisboa in the Cotai Strip. Mass-market GGR also rose by 9.5 per cent to €607 million, while slot machine revenue grew by 14.6 per cent to €31.1 million.

The higher-margin mass gaming segment improved performance had adjusted EBITDA rising 17 per cent to €104.5 million as its margin increased from 10.5 per cent in 2017 to 11.5 during this year’s first three months.

VIP gaming revenue couldn’t keep up and reported a decrease of 1.1 per cent from €523 million in 2017, with total VIP chip sales during the period reaching €18.8 billion.

SJM Holdings CEO Ambrose So Shu Fai said: “We are very pleased that our efforts to strengthen mass market and VIP businesses combined with cost controls have resulted in material increases in SJM Holdings’ EBITDA and net profit during the first quarter. We strive to continue enhancing our business on Macau peninsula whilst we complete construction of the Grand Lisboa Palace on Cotai.”