SJM Holdings, one of Macau’s premier casino operators and part of the “Big Six” concessionaires, has released its financial results for the first half of 2024.
–Total Net Revenue
For the first half of 2024, SJM Holdings achieved a total net revenue of HK$13.8 billion (approximately $1.77 billion). This represents a remarkable year-on-year increase of 47.4%. However, it’s important to note that this figure is still below the HK$17 billion recorded in 2019, indicating a recovery path yet to match pre-pandemic levels.
Gross Gaming Revenue (GGR)
The company’s gross gaming revenue also saw significant growth, totaling HK$13.8 billion. This is a substantial 50.3% increase from the previous year. Despite this impressive growth, GGR remains lower than the HK$20.4 billion achieved in 2019, underscoring ongoing challenges in reaching historical highs.
Non-Gaming Revenue
SJM Holdings has made notable strides in its non-gaming segment. Non-gaming revenue surged to HK$904 million, marking a 35.7% year-on-year increase. This figure is nearly triple the HK$354 million recorded in 2019, highlighting a significant enhancement in the company’s diversified revenue streams.
Adjusted EBITDA
The company’s adjusted EBITDA experienced a remarkable increase of 275.9% year-on-year, reaching HK$1.73 billion. This substantial rise reflects improved operational efficiency and profitability. The adjusted EBITDA margin stands at 12.6%, up by 7.7 percentage points from the previous year, further demonstrating enhanced financial performance.
Hotel Occupancy
SJM Holdings achieved an average hotel occupancy rate of 94.2% for the first half of 2024. This represents a significant increase from 2023’s occupancy rate of 85.9% and also surpasses the 88.4% rate observed in 2019. This high occupancy rate indicates strong demand and effective management of the company’s hospitality assets.
Grand Lisboa Palace
Among the company’s properties, the Grand Lisboa Palace generated gross revenue of HK$2.95 billion. This performance positions it as a significant revenue contributor, though still behind the Grand Lisboa Macau, which reported revenue of HK$3.8 billion.
Self-Promoted Casinos
The company’s self-promoted casinos have also shown impressive results, with a 135.4% increase in non-rolling GGR. This growth highlights the success of SJM Holdings’ efforts in boosting its own casino operations.
Food and Beverage Portfolio
Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, has indicated that the group will intensify its focus on the food and beverage sector. This strategic move aims to enhance the overall guest experience and drive additional revenue from non-gaming activities.
Kam Pek Market Revitalization
The company plans to advance the initial phase of the Kam Pek Market revitalization project. This initiative is expected to contribute to the broader development and modernization of Macau’s tourism and entertainment infrastructure.
Branded Sporting Competitions
SJM Holdings will also host various branded sporting events. These events are intended to elevate the Lisboa brand’s international profile and extend Macau’s influence in the global market. This strategic effort aligns with the company’s goal of enhancing its global presence and attracting a diverse audience.
SJM Holdings has demonstrated impressive growth and resilience in its financial performance for the first half of 2024. While the company has achieved significant year-on-year increases in revenue and EBITDA, it continues to work towards recovering its pre-pandemic financial levels. The strategic initiatives outlined, including enhancements in the food and beverage sector, market revitalization, and international sporting events, position SJM Holdings to further solidify its market presence and drive future growth.
The company’s performance reflects a robust recovery trajectory and a strategic focus on diversifying its revenue streams, enhancing operational efficiency, and expanding its global footprint. As the gaming and hospitality industry continues to evolve, SJM Holdings is well-positioned to navigate these changes and capitalize on emerging opportunities.