SJM Q1 profit gains 16.5 percent driven by mass

    SJM Holdings said Q1 profit rose 16.5 percent over the prior year to HK$850 million ($108.3 million), driven by mass market revenue.

    VIP gross gaming revenue in the period dropped 19.4 percent to $3.93 billion, while mass market revenue grew 7.9 percent to $6.19 billion. Slot machine gross gaming revenue was HK$290 million, a decrease of 1.3 percent.

    Total net revenue increased 0.7 percent to $8.65 billion.

    Analysts at Bernstein Research said the results had come in above its estimates on the EBITDA level, partly because of a high 3.2 percent hold. Additionally there was a one-off reclassification of lease expenses resulting in a positive impact of $57 million to EBITDA.

    However, the firm notes that the company continues to lose market share in Macau, dropping to 14.1 percent of overall market GGR at the end of the quarter, compared with 14.7 percent the same time last year.

    “We are very pleased that our efforts to strengthen our mass market business have resulted in material increases in SJM’s net profit and adjusted EBITDA during the first quarter,” Vice Chairman and CEO Ambrose So commented. “We strive to continue enhancing our business on Macau Peninsula whilst we complete construction of the Grand Lisboa Palace on Cotai.”

    The company said construction on the resort “made progress” during the quarter.