SJM Holdings, a prominent player in the gaming industry, showcased remarkable growth and resilience in their recent financial report. With a sharp focus on enhancing both gaming and non-gaming segments, coupled with strategic management initiatives, the company has not only weathered the challenges posed by the Covid-19 pandemic but has also achieved substantial gains in revenue and market share.
Financial Performance Overview:
SJM Holdings reported a robust financial performance, marked by a significant increase in gross gaming revenue (GGR) to HK$6.89 billion (US$882 million), representing a remarkable 77.3% rise. Total net revenue stood at HK$6.92 billion. The surge in GGR was complemented by a noteworthy expansion in non-gaming revenue, which includes revenue from hotel, catering, and leasing operations, registering a remarkable 54.5% increase. These figures underscore the company’s adeptness in capitalizing on diverse revenue streams.
Market Share Dynamics:
SJM Holdings demonstrated a commendable increase in market share in terms of GGR for its flagship properties – Grand Lisboa Palace Resort Macau and Grand Lisboa Macau, with a 1.1% and 0.6% rise respectively year-on-year. This growth reflects the company’s strategic positioning and customer-centric approach, solidifying its foothold in the competitive gaming landscape.
Non-Rolling Market Segment Expansion:
The company’s concerted efforts to enhance non-rolling market segments yielded fruitful results, evident in the staggering 134% growth in non-rolling GGR from self-promoted casinos since the first quarter of 2019. This strategic pivot underscores SJM Holdings’ adaptability and resilience in navigating market dynamics, particularly in the wake of the Covid-19 disruptions.
Grand Lisboa Palace Resort Macau:
The resort reported a gross revenue of HK$1.42 billion, driven by an upsurge in GGR and non-gaming revenue. The remarkable turnaround in adjusted property EBITDA, soaring from a negative HK$230 million to HK$88 million, underscores the efficacy of management strategies in optimizing operational efficiency and driving profitability.
Macau:
With a gross revenue of HK$1.96 billion and a staggering 102.3% year-on-year increase in GGR, Grand Lisboa Macau exemplifies the company’s robust performance. The substantial adjusted property EBITDA of HK$535 million underscores the property’s operational excellence and revenue-generating capabilities.
Leadership Insight and Strategic Vision:
Daisy Ho, Chairman of SJM Holdings, expressed her satisfaction with the company’s performance, attributing it to focused management efforts and a dedicated team committed to customer satisfaction. Emphasizing the company’s plans for large-scale international events to bolster brand visibility and enhance guest experiences, Ho underscores SJM Holdings’ commitment to innovation and customer-centricity.
Expansion and Innovation:
The quarter witnessed the grand opening of Palazzo Versace Macau, marking a significant milestone in SJM Holdings’ expansion strategy. This addition to their portfolio reflects the company’s commitment to diversification and offering unparalleled luxury experiences to its patrons.
SJM Holdings’ recent financial report underscores its resilience and strategic acumen in navigating challenges and driving growth in the post-Covid era. With a robust financial performance, notable market share gains, and a strategic focus on enhancing both gaming and non-gaming segments, the company stands poised for continued success. Under the visionary leadership of Daisy Ho, SJM Holdings is well-positioned to capitalize on emerging opportunities and reinforce its position as a leader in the global gaming industry.