SJM Holdings Reports Net Loss as Market Share Contracts in Macau

SJM Holdings Ltd, a significant player in Macau’s casino industry, reported a challenging first quarter with a net loss of HKD62 million (approximately US$7.9 million). This marks a shift from the same period last year, where the company recorded a net profit of HKD31 million. These financial details emerged from unaudited statements filed with the Hong Kong Stock Exchange.

This quarter was particularly notable as it represented the first full three months that the company operated without any satellite casinos in its portfolio. The company’s gross gaming revenue (GGR) during this period reached just under HKD6.14 billion, reflecting an 18.8% decrease compared to the same quarter in the previous year. SJM Holdings highlighted this decline in a detailed filing on Thursday.

The company's overall share of Macau's GGR was reported at 9.6% for the first quarter, a reduction from the 13.5% recorded in the same timeframe last year.

Impact of Operational Changes on Financial Performance

Despite the drop in market share and overall revenue, SJM Holdings claimed a positive shift with a 2.7 percentage point gain in their margin for adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA). "As we transitioned away from the satellite model, the resulting increase in our adjusted EBITDA margin reflects a more streamlined and synergistic operating structure," stated Daisy Ho Chiu Fung, SJM Holdings’ chairman. She conveyed the company's focus on property enhancements and superior guest experiences to drive long-term shareholder value.

The first-quarter adjusted EBITDA for the group stood resilient at HKD917 million despite a 4.3% decrease compared to the previous year. During this period, the company maintained an adjusted EBITDA margin of 15.5%, an improvement from the 12.8% margin reported in the first quarter of the previous year.

Key properties contributing to SJM’s revenue included Grand Lisboa Palace in Cotai and several Macau peninsula locations such as the Grand Lisboa, Casino Lisboa, Casino L’Arc Macau, and Casino Oceanus at Jai Alai. Notably, last year’s acquisition of Casino L’Arc Macau played a role in this quarter's performance. SJM finalized a HKD1.75-billion acquisition deal, leading to the complex's transition to a company-managed venue by December 30.

Future Prospects and Continued Optimism

Despite fiscal challenges, some properties under SJM Holdings demonstrated growth in specific metrics. The Grand Lisboa Palace witnessed a year-on-year increase of 11.7% in its GGR, reaching HKD1.75 billion. Nevertheless, its adjusted property EBITDA saw a sharp 61.1% decline to HKD58 million, largely due to elevated operational costs. Conversely, the Grand Lisboa recorded a GGR increase of 6.7% year-over-year, amounting to HKD1.92 billion, with a moderate 3.4% reduction in adjusted EBITDA to HKD425 million.

The combined GGR from Casino Lisboa, Casino L’Arc Macau, and Casino Oceanus at Jai Alai surged by 83.6% year-on-year, totaling HKD2.47 billion. This impressive growth stemmed primarily from the expanded gaming area at Casino Lisboa and the addition of Casino L’Arc Macau.

SJM Holdings revealed plans for further expansion, specifically mentioning the Crystal Palace zone within Casino Lisboa, which began operations in November 2025. A second phase of this expansion is projected for mid-2026 and is designed to coincide with more than 400 newly-refurbished rooms at Hotel Lisboa.

As of the end of March, SJM Holdings maintained HKD3.4 billion in cash, bank holdings, and deposits, although it carries a substantial debt of HKD30.2 billion.

Source: SJM Holdings slips to 1Q net loss, Macau GGR market share contracts to 9.6pct, GGRAsia, May 7, 2026.