SJM Holdings Q3 net gaming revenue rises 9.5 percent

SJM Grand Lisboa
SJM Grand Lisboa

SJM Holdings said its net gaming revenue in Q3 rose 9.5 percent, with the mass market and slot machines outpacing the VIP sector.

Net gaming revenue came in at HK$8.32 billion ($1.0 billion), the company said in a filing to the Hong Kong Stock Exchange.

Adjusted EBITDA gained 26.7 percent to HK$919 million compared with the same period the prior year, while profit attributable to owners of the company was HK$707 million, up 65.1 percent.

SJM operates the Casino Grand Lisboa on the Macau Peninsula, as well as three self-promoted casinos and 16 satellite casinos. It is the last of the six operators in Macau to expand to the Cotai Strip, with the opening of its Grand Lisboa Palace resort delayed until next year.

In its earnings filing, the company said construction of the resort was proceeding apace, but gave no further details.

Gross gaming revenue at its flagship Casino Grand Lisboa was HK$4,174 million, an increase of 11.8 percent.

Overall group VIP GGR rose 6.6 percent to HK$5.0 billion, while mass market revenue was up 10.6 percent to $5.62 billion. Slot machine GGR gained 13.7 percent to HK$285 million.

Bernstein said the result was in line with its expectations, though slightly below the market consensus. The research firm said management had given some details on October, with rolling chip sales up 9 percent, but with a materially lower hold rate, which is likely to lead to lower VIP month on month. Mass is trending higher in the mid teens, but overall market GGR is likely up 20 percent month on month.

“We see nothing so far to get us upbeat on the stock, as such we remain on the sidelines,” it said.