SJM Holdings, one of Macau’s prominent gaming operators, recently disclosed its financial performance for the third quarter of 2023, reporting a loss attributable to owners of the parent of HK$410 million (US$52.5 million). Despite challenges, the company showcased resilience with a year-on-year surge in gross gaming revenues (GGR) and notable progress in the ramp-up of its Cotai integrated resort, Grand Lisboa Palace.
Q3 Financial Overview:
SJM Holdings reported a Q3 loss attributable to owners of the parent amounting to HK$410 million, with gross gaming revenues remaining relatively flat quarter-on-quarter at HK$5.73 billion. While the GGR showed a remarkable year-on-year increase of over 500%, the gradual development of Grand Lisboa Palace contributed to the property generating HK$783 million in gross gaming revenue.
Grand Lisboa Palace Performance:
Grand Lisboa Palace, SJM’s Cotai integrated resort, demonstrated a narrowed Adjusted Property EBITDA loss of HK$27 million in Q3, marking significant improvement from the previous year and the preceding quarter. Despite challenges in ramp-up, the property’s performance is showing signs of positive momentum.
Group-Wide Adjusted EBITDA and Net Revenues:
SJM Holdings reported group-wide Adjusted EBITDA of HK$566 million, marking a substantial 159% year-on-year increase and a 32% quarter-on-quarter growth. Total net revenues rose by 471% year-on-year to HK$5.87 billion, showcasing the company’s ability to navigate challenges and capitalize on market opportunities.
GGR by Segment:
SJM’s rolling GGR grew by an impressive 1,055% year-on-year, reaching HK$335 million. Non-rolling GGR increased by 507% to HK$4.90 billion, and electronic GGR saw a 330% surge to HK$330 million. The diverse revenue streams highlight SJM’s ability to capture growth across various gaming segments.
Other Promoted Casinos and Satellite Casinos:
SJM’s other self-promoted casinos, including Casino Lisboa and Casino Oceanus, generated combined GGR of HK$1.18 billion and Adjusted EBITDA of HK$345 million. Satellite casinos contributed GGR of HK$2.30 billion but reported an Adjusted EBITDA loss of HK$80 million. These results illustrate the varied performance within SJM’s casino portfolio.
Chairman’s Perspective:
SJM Chairman Daisy Ho expressed satisfaction with the Q3 results, emphasizing the steady progress in Grand Lisboa Palace’s ramp-up. She highlighted the company’s active support for Macau’s economic diversification through investments and sponsorships in cultural, educational, gastronomic, and sports activities.
SJM Holdings’ Q3 2023 financial results reflect a resilient performance amid industry challenges. The steady growth in Adjusted EBITDA, progress in Grand Lisboa Palace’s development, and diversified revenue streams position SJM for continued success in Macau’s dynamic gaming landscape. As the company navigates the evolving market, its strategic investments and commitment to broader economic initiatives signal a forward-looking approach in a highly competitive environment.