In the third quarter of the year, between July and September, SJM Holdings Ltd emerged as the only casino operator in Macau to record a sequential increase in its casino gross gaming revenue (GGR). Alongside SJM, Wynn Macau Ltd was among the few Macau operators to demonstrate growth in market share during this period. These findings were detailed in a report by Deutsche Bank Securities Inc., which analyzed the performances of Macau's six major casino operators for the quarter ending September 30.
Analyst Carlo Santarelli from Deutsche Bank provided a comprehensive overview of the sector's quarterly results. Notably, SJM Holdings benefited significantly from the business momentum at the Grand Lisboa Palace, its prominent property on the Cotai Strip. The firm recorded a modest profit, as highlighted in its unaudited quarterly financial statements submitted to the Hong Kong Stock Exchange on November 12.
SJM Holdings: A Breakthrough in Market Share
SJM Holdings achieved a commendable milestone by increasing its market share of GGR from 12.7 percent in Q2 to 14.1 percent in Q3. This growth translated into an 8.7 percent rise in GGR in U.S. dollar terms, reaching approximately US$967 million. While SJM conquered new grounds, Wynn Macau Ltd also saw a minor increase in market share—up by a single basis point to 12.8 percent, despite experiencing a decrease of 0.8 percent in its actual GGR, which amounted to approximately US$880 million. The assessments and figures, as reported by Deutsche Bank, focused on company-declared GGR statistics. These could differ from those reported by Macau's Gaming Inspection and Coordination Bureau due to varied definitions of table classifications used by the regulator.
Competitive Dynamics: Challenges for Other Operators
Among other casino operators in Macau, MGM China Holdings Ltd faced the steepest decline in market share, losing 1.3 percentage points and falling to 14.8 percent with GGR slightly under US$1.02 billion. This marked a sequential decrease of 9.7 percent. Analysts attributed this decline to fierce competition in attracting players in the Macau market.
Similarly, Melco Resorts & Entertainment Ltd saw a slight reduction, dropping two basis points to a 14.7 percent market share, with a GGR of slightly over US$1.01 billion, reflecting a sequential dip of 3.1 percent.
Despite holding a stable market share at 24.5 percent, Sands China Ltd reported a mild decline of 1.6 percent in GGR, recording figures of just over US$1.68 billion.
Likewise, Galaxy Entertainment Group Ltd maintained its market share at 19.1 percent, yet experienced a drop of 1.8 percent in its third-quarter GGR, totaling US$1.31 billion.
These figures highlight the volatile and competitive nature of the gaming industry in Macau, with only SJM Holdings reporting both increased market share and GGR during the quarter.
Source: SJM only Macauop with 3Q share, GGR gains: DB, GGRAsia, November 15, 2024.
Posted by Wizard
Nov 15 2024
Nov 15 2024
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