SJM Holdings, a major player in the gaming industry, has unveiled its financial performance for the third quarter of 2023, showcasing an impressive 470.8% year-on-year increase in total net revenue. The robust growth is attributed to significant improvements in net gaming revenue, particularly in rolling gross gaming revenue, marking a noteworthy recovery from the challenges posed by the Covid-19 pandemic.
Key Financial Highlights:
Total Net Revenue Surge: SJM Holdings witnessed a staggering 470.8% year-on-year increase in total net revenue, reaching HK$5.87 billion (US$750.2 million) in the third quarter of 2023. This comprehensive figure includes revenue from hotel, catering, retail, leasing, and related services.
Net Gaming Revenue Soars: Net gaming revenue experienced a remarkable surge, soaring by 492.9% to a total value of HK$5.41 billion. The resurgence is particularly evident in rolling gross gaming revenue, which registered a remarkable 1,055.2% increase, amounting to HK$335 million.
Adjusted EBITDA Growth: Adjusted EBITDA witnessed a substantial growth of 158.5% in the third quarter of 2023, reaching HK$566 million. This financial metric reflects the company’s operational performance and profitability.
Grand Lisboa Palace’s Impact: The Grand Lisboa Palace, a key asset for SJM Holdings, showcased significant improvements, contributing to the overall positive financial results. Revenue for the Grand Lisboa Palace experienced an 842.6% increase from Q3 2022 to HK$1.08 billion in Q3 2023, with the casino segment leading in individual revenue growth.
Losses Reduced Significantly: SJM Holdings made notable strides in reducing losses, with the loss attributable to owners of the company decreasing by 78.4% to HK$410 million. This reflects the company’s effective strategies in managing its financial performance.
Analysis and Future Outlook:
The financial data depicts a gradual recovery for SJM Holdings, with the post-Covid-19 era showcasing a rebound in net gaming revenue. The decline observed in 2022 is likely attributed to travel restrictions and quarantine requirements in Macau during that period. The notable surge in various revenue streams, coupled with the impressive performance of the Grand Lisboa Palace, positions SJM Holdings for sustained growth in the evolving landscape of the gaming industry.
Chairman’s Perspective:
Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, expressed satisfaction with the results. She highlighted the continued growth in adjusted EBITDA and the steady progress in the ramp-up of Grand Lisboa Palace. Ho emphasized the company’s active support for the economic diversification of Macau through investments and sponsorships in cultural, educational, gastronomic, and sports activities.
SJM Holdings’ Q3 2023 financial results underscore its resilience and strategic prowess in navigating the challenges posed by the global landscape. With a focus on sustained growth, operational excellence, and contributions to the local community, SJM Holdings positions itself as a key player in the dynamic world of gaming and entertainment.