SJM Holdings, a prominent Macau concessionaire, has showcased a robust resurgence in its recent quarterly report. With a notable surge in gross gaming revenue (GGR) and substantial improvements in various operational metrics, SJM’s performance underscores a significant turnaround since the reopening of borders in early 2023.
Overview of Financial Performance:
In the first quarter of 2024, SJM Holdings reported a staggering 77.3% year-on-year increase in gross gaming revenue, amounting to HK$6.89 billion (US$881 million). This surge is accompanied by a remarkable turnaround in financial indicators, as evidenced by a narrowed loss attributable to owners of the company, down to HK$74 million (US$9.5 million) compared to HK$869 million (US$111 million) in the previous year. Adjusted EBITDA also saw a substantial upswing, reaching HK$864 million (US$110 million), compared to a mere HK$31 million in the first quarter of 2023.
Grand Lisboa Palace:
SJM’s Cotai integrated resort experienced an exceptional growth trajectory, with GGR soaring by 258% year-on-year to HK$1.11 billion (US$142 million). This surge propelled Adjusted Property EBITDA to HK$88 million (US$11.3 million), marking a significant turnaround from a loss of HK$230 million (US$29.4 million) in the previous year.
Grand Lisboa Peninsula:
The flagship property continued to shine brightly, with GGR increasing by 102% to HK$1.88 billion (US$240 million). Adjusted Property EBITDA witnessed a remarkable upsurge of 243%, reaching HK$535 million (US$68.4 million).
Self-Promoted Casinos:
Sofitel at Ponte 16 and Jai Alai collectively recorded a GGR of HK$1.26 billion (US$161 million), marking a 34.0% increase year-on-year. Adjusted Property EBITDA also saw a notable rise, reaching HK$334 million (US$42.7 million), up by 27.5%.
Satellite Casinos:
Despite a GGR increase of 54.7%, the nine satellite casinos reported an Adjusted Property EBITDA loss of HK$52 million (US$6.7 million).
Insights from Management:
Daisy Ho, Chairman of SJM Holdings and Managing Director of SJM Resorts, S.A., attributed the quarter’s success to strong performance across all self-promoted properties, emphasizing both gaming and non-gaming sectors. She highlighted management’s focused efforts on improving internal ROI and the team’s dedication to delivering exceptional customer experiences. Additionally, Ho outlined a comprehensive strategy involving large-scale international events aimed at enhancing SJM and the Lisboa brand’s global visibility and providing multidimensional experiences for guests.
SJM Holdings’ first-quarter performance stands as a testament to its resilience and strategic prowess in navigating challenging market conditions. With substantial improvements across key operational segments and a forward-looking approach to brand promotion and customer engagement, SJM appears well-positioned to sustain its growth momentum in the dynamic landscape of Macau’s gaming industry.