The fiscal year 2023 marked a pivotal moment for SJM Holdings, a leading force in Macau’s gaming landscape, as it showcased a striking resurgence in financial performance. Amidst a backdrop of economic uncertainty, the company demonstrated resilience and adaptability, resulting in a notable reduction in losses and robust revenue growth.
Financial Overview:
SJM Holdings reported a loss of HK$2.01 billion for the fiscal year ending December 31, 2023, a significant improvement from the previous year’s HK$7.80 billion loss. This turnaround was underpinned by a staggering 224% increase in total net revenue, reaching HK$21.6 billion, primarily driven by a remarkable surge in gross gaming revenues, which soared by 229% to HK$21.2 billion.
Grand Lisboa Palace Performance:
Despite a substantial increase in gross gaming revenue by 678% to HK$2.69 billion, SJM’s Cotai integrated resort, Grand Lisboa Palace, continued to grapple with profitability challenges. Adjusted Property EBITDA reported a loss of HK$317 million, highlighting the complexities in achieving financial sustainability despite revenue escalation.
Grand Lisboa Peninsula’s Triumph:
In contrast, the Peninsula property, Grand Lisboa, emerged as a triumph for SJM Holdings. With a phenomenal 410% surge in gross gaming revenue to HK$5.44 billion, and a significant contribution from non-rolling table games, the property achieved an Adjusted Property EBITDA of HK$1.33 billion, marking a substantial turnaround from the preceding year’s losses.
Contributions from Self-Promoted and Satellite Casinos:
SJM’s self-promoted casinos, including Jai Alai and Ponte 16, collectively generated a gross gaming revenue of HK$4.43 billion. These establishments yielded an Adjusted Property EBITDA of HK$1.26 billion, underscoring their significance within SJM’s portfolio. However, the company’s nine satellite casinos witnessed a decline, with a decrease in Adjusted Property EBITDA to HK$338 million despite generating gross gaming revenue of HK$8.65 billion.
Market Position:
With an 11.9% share of Macau’s gross gaming revenue in 2023, SJM Holdings maintained a noteworthy presence across both mass market and VIP segments. This market positioning reflects the company’s resilience amidst the evolving dynamics of Macau’s gaming industry.
Outlook and Commentary:
Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, S.A., expressed optimism regarding the company’s trajectory in 2023. She emphasized the significant recovery in gaming and non-gaming revenues from the pandemic-induced downturn, along with the steady progress in the ramp-up of Grand Lisboa Palace.
The financial report for 2023 unveils a narrative of resurgence and strategic recalibration for SJM Holdings. Despite facing headwinds, the company exhibited a remarkable turnaround, characterized by robust revenue growth and a reduction in losses. As SJM continues its journey amidst the dynamic gaming landscape, its commitment to innovation, operational excellence, and strategic investments will be pivotal in sustaining its upward trajectory.