Macau-based casino operator SJM Holdings Ltd has disclosed a significant financial development for the first half of 2026, revealing that losses attributed to its shareholders increased substantially. The company reported a loss of HKD294.7 million (about US$37.6 million), signaling a 61.7 percent increase compared to the same period a year prior. Amidst these challenges, the firm did not declare any interim dividend, leaving investors to assess the implications of its financial standing.
Interestingly, despite increased losses, the company's adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) showed an improvement, rising by 3.3 percent year-on-year and reaching HKD1.70 billion. This was a noteworthy achievement considering the broader cost inflation and elevated reinvestment pressures affecting the Macau casino industry.
Operational Efficiency Amid a Tough Market
In more detailed financial metrics, SJM Holdings' adjusted EBITDA margin improved by 3.5 percentage points from the previous year, coming in at 14.7 percent. This development was particularly significant given the challenging operating environment in Macau, where cost inflation and increased reinvestment levels impacted profitability across the sector. The company attributed this margin improvement to enhanced operational efficiency, as outlined in their press release.
Additionally, the financial report for the first half of 2026 marked the completion of a critical transition for SJM Holdings as the group moved towards a direct-management model. This shift followed the closure of satellite casinos by the end of 2025, resulting in differing operational structures that made direct comparisons with the first half of 2025 less straightforward. The closure meant that satellite casinos, which contributed revenue in early 2025, were no longer a factor in 2026 operations, thus affecting comparability.
Strategic Developments and Market Changes
Chairman Daisy Ho Chiu Fung highlighted the strategic transition as a pivotal move, asserting that taking direct control over their portfolio enhanced the group's ability to manage customer experience, costs, and earnings quality. This streamlined approach was credited for already reflecting positively in operating performance and margin expansion.
Furthermore, changes in the group's revenue streams were evident, as there was a 32.9 percent rise in rolling gross gaming revenue (GGR) to HKD1.46 billion, while non-rolling GGR declined by 21.8 percent, settling around HKD9.62 billion. Electronic-game GGR also experienced a drop, falling by 29.1 percent to slightly over HKD1.00 billion.
As SJM Holdings continues to adapt to these fluctuations, it has also increased its table capacity at the Cotai resort following resource redeployment from closed satellite casinos. New gaming areas have been developed, including Sky Phoenix West Tower VIP area, aimed at bolstering the VIP segment through targeted upgrades.
The company's proactive approach also saw the opening of the second phase of the Crystal Palace gaming area at Hotel Lisboa Macau on August 10, enhancing gaming capacity and customer options. Meanwhile, efforts to refurbish approximately 400 hotel rooms at Hotel Lisboa are underway, pending statutory inspections before becoming available for guest use.
Overall, SJM Holdings ended the first half of the year with HKD3.49 billion in cash and equivalents against HKD30.22 billion in debt, underscoring its continued focus on enhancing operational efficiency and converting revenue growth into sustainable earnings.
Chairman Ho’s comments emphasize the company's commitment to elevating property offerings and fortifying market positioning to support long-term growth, despite credit rating downgrades due to leverage concerns by Moody’s and Fitch Ratings.
Source: SJM Holdings 1H loss widens 62pct, adjusted EBITDA up 3pct, GGRAsia, August 25, 2026.
Posted by Wizard
Aug 25 2026
Aug 25 2026
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