In the dynamic landscape of Macau’s gaming industry, SJM Holdings stands out with its impressive financial performance in 2023. Despite the challenges posed by the pandemic, SJM Holdings reported significant growth in both gaming and non-gaming revenues.
Financial Performance:
SJM Holdings witnessed a remarkable surge in its net gaming revenue, soaring by 229.3% to HK$20.06 billion in 2023 from HK$6.1 billion in 2022. This substantial growth underscores the company’s resilience and adaptability in navigating the post-pandemic recovery phase. Moreover, other income streams, including hotels, catering, and retail, experienced a commendable uptick, reaching HK$1.82 billion, reflecting a growth rate of 191.3%.
Adjusted EBITDA emerged as a pivotal indicator of SJM Holdings’ turnaround, transitioning from a net loss in 2022 to a net profit of HK$1.7 billion in 2023. Notably, the loss attributed to the owners of SJM Holdings plummeted from HK$7.8 billion in FY22 to HK$2.01 billion in FY23, showcasing a substantial improvement in profitability and operational efficiency.
Market Share:
With an 11.9% market share of Macau’s gross gaming revenue, SJM Holdings solidified its position as a key player in the region’s thriving gaming market. This notable market share underscores the company’s strong brand equity and customer loyalty, contributing significantly to its revenue growth and market dominance.
Grand Lisboa: Leading Revenue Generator
Grand Lisboa emerged as a flagship property for SJM Holdings, contributing significantly to its overall revenue stream. In FY23, Grand Lisboa’s total revenue amounted to HK$5.75 billion, with gross gaming revenue constituting 94.6% of the total revenue, totaling HK$5.44 billion. The remaining 5.3% was generated through non-gaming operations, amounting to HK$307 million.
The substantial growth in Grand Lisboa’s gross gaming revenue, which surged by 408% from FY22 to FY23, mirrors the broader trend observed across Macau, which reported a 433% year-on-year increase in gaming revenue. Additionally, non-gaming revenue witnessed a notable uptick, soaring by 132% compared to the previous year, signaling diversified revenue streams and enhanced operational resilience.
Adjusted property EBITDA at Grand Lisboa returned to profitability, marking a significant turnaround from the previous year’s loss. FY23 saw a notable improvement, with adjusted property EBITDA reaching HK$1.33 billion, showcasing enhanced operational efficiency and cost management strategies.
Grand Lisboa Palace: Driving Growth Through Diversification
Grand Lisboa Palace emerged as a catalyst for growth and diversification, leveraging both gaming and non-gaming revenue streams to bolster its financial performance. In FY23, Grand Lisboa Palace generated HK$3.67 billion in revenue, with gaming contributing HK$2.69 billion and non-gaming activities contributing HK$980 million.
The surge in gaming revenue at Grand Lisboa Palace, growing by 667% from FY22 to FY23, underscores the property’s potential as a key revenue driver for SJM Holdings. Despite reporting a loss in adjusted property EBITDA, the reduction from HK$969 million in 2022 to HK$317 million in 2023 signifies a positive trajectory towards profitability and operational stability.
Strategic Initiatives and Future Outlook:
SJM Holdings’ Chairman, Daisy Ho, expressed optimism regarding the company’s performance, emphasizing the substantial recovery in gaming and non-gaming revenues amid the pandemic challenges. Furthermore, the strong sequential growth in adjusted EBITDA and the steady progress in the ramp-up of Grand Lisboa Palace underscore the effectiveness of the company’s strategic initiatives and operational resilience.
Looking ahead, SJM Holdings is poised to capitalize on the growing demand for integrated resort experiences, leveraging its iconic properties and diversified offerings to enhance its competitive edge in the evolving Macau gaming landscape. With a steadfast commitment to innovation, customer-centricity, and operational excellence, SJM Holdings is well-positioned to sustain its growth momentum and drive value for its stakeholders in the years to come.
SJM Holdings’ financial performance in 2023 reflects a remarkable turnaround, characterized by robust revenue growth, improved profitability, and market resilience. With flagship properties like Grand Lisboa and Grand Lisboa Palace driving revenue diversification and operational excellence, SJM Holdings is poised to navigate the evolving dynamics of the Macau gaming market with confidence and agility. As the company continues to execute its strategic vision and capitalize on emerging opportunities, it remains a formidable player in the global gaming industry, driving sustainable growth and value creation for its stakeholders.