SJM Holdings Ltd, a prominent casino operator in Macau, has announced a shift to profitability in the first quarter, recording a profit of HKD31 million (US$4.0 million). This marks a significant improvement from the HKD74-million loss reported in the same period the previous year. The company's total net revenue for the quarter rose by 8.1 percent year-on-year, reaching HKD7.48 billion. This growth was primarily driven by a 7.5 percent increase in gaming net revenue, which amounted to nearly HKD6.95 billion.
The standout performance came from the group's Cotai resort, Grand Lisboa Palace, which saw its gross gaming revenue (GGR) surge by 41.1 percent year-on-year to nearly HKD1.57 billion. SJM Holdings, adhering to the Hong Kong Stock Exchange's requirement for semi-annual formal earnings reports, released unaudited selected highlights from its trading for the three months ending March 31.
Detailed Analysis of Revenue Streams and Market Conditions
Despite a general softening in consumer spending across the market during the first quarter, SJM Holdings managed to maintain steady performance on a sequential basis, as noted by the company's chairman, Daisy Ho Chiu Fung. She stated, "While the market experienced softer consumer spending in the first quarter, SJM Holdings' performance remained steady on a sequential basis." Ho also highlighted the ongoing property enhancements throughout 2024, which are now yielding results. She mentioned, "The property enhancements undertaken throughout 2024 are now coming to fruition, with a pipeline of new offerings set to launch in phases – serving as growth levers for the mass market. Although the near-term macroeconomic outlook presents some headwinds, we remain focused on execution and confident in the long-term fundamentals of Macau's tourism economy."
The company's first-quarter adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) saw a 10.9 percent year-on-year increase, reaching HKD958 million. The group's GGR from the rolling chip business, which pertains to VIP play, was HKD641 million, reflecting a slight decrease of 0.6 percent year-on-year. In contrast, the mass-market table game GGR rose by 8.6 percent to HKD6.20 billion, and electronic game GGR improved by 32.1 percent to HKD707 million.
Performance of Key Properties and Financial Position
Grand Lisboa Palace's total first-quarter revenue was just over HKD1.93 billion, marking a 36.2 percent increase year-on-year. The property's adjusted EBITDA also saw a significant rise, up 69.3 percent from the previous year to HKD149 million. Conversely, at the company's downtown Macau flagship property, Grand Lisboa, casino GGR experienced a decline of 4.4 percent year-on-year, totaling just over HKD1.79 billion. The total revenue at Grand Lisboa was down by 3.6 percent to just below HKD1.89 billion, with the first-quarter adjusted EBITDA dropping by 17.8 percent to HKD440 million.
As of March 31, SJM Holdings reported a strong financial position with just over HKD3.23 billion in cash, bank balances, short-term bank deposits, and pledged bank deposits. The company's debt stood at just below HKD26.74 billion. SJM Holdings' existing syndicated banking facilities include a HKD9-billion term loan and a HKD10-billion revolving credit facility, of which HKD3.8 billion remained undrawn as of the end of the first quarter.
Source: Grand Lisboa Palace 1Q GGR up 41pct y-o-y as promoter SJM Holdings records modest profit, GGRAsia, April 29, 2025.
Posted by Wizard
Apr 30 2025
Apr 30 2025
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