SJM Holdings Limited has announced substantial increases across key metrics in 2024, including a 33.8 percent increase in net gaming revenue to HK$26.8 billion ($3.4 billion).
The group’s adjusted EBITDA surged to HK$3.7 billion ($471 million), up 117.9 percent from HK$1.7 billion ($217 million) in 2023. The strong performance led to a small profit attributable to owners of the company of HK$3 million ($384,000), recovering from a significant loss of HK$2 billion ($256 million) in the previous year.
SJM’s positive results were driven by a steady gaming market presence. The company indicated it captured 13.1 percent of Macau’s gross gaming revenue, including 15.8 percent from mass-market table games and 5.1 percent from VIP gaming.
The group’s Cotai flagship, the Grand Lisboa Palace, also contributed significantly, generating gross revenue of HK$6.5 billion ($830 million), which includes HK$5.2 billion ($664 million) from gaming and HK$1.3 billion ($166 million) from non-gaming activities. This marks a substantial increase from its previous year’s gross gaming revenue of HK$2.6 billion ($332 million).
In addition, the Macau peninsula property – Grand Lisboa – saw its gross revenue rise to HK$7.8 billion ($1 billion), with gaming revenue climbing to HK$7.5 billion ($960 million), compared to HK$5.4 billion ($691 million) in 2023.
In a further breakdown of its operations, the company headed by Daisy Ho reported that its satellite casinos generated HK$10.7 billion ($1.4 billion) in casino revenue (GGR) for the year, an increase of 24.9 percent from HK$8.6 billion ($1.1 billion) in 2023.
The adjusted property EBITDA from these satellite venues improved significantly, rising to HK$42 million ($5.4 million), a notable recovery from a loss of HK$338 million ($43 million) in the previous year.
Despite the encouraging financial results, the Board of Directors has not recommended a final dividend for 2024, consistent with the previous year. The company indicated it continues to prioritize financial stability, reporting HK$3.2 billion ($409 million) in cash and bank balances against HK$26.4 billion ($3.4 billion) in debt as of December 31st, 2024.
As of the end of last year, SJM operated nine satellite casinos: Casa Real, Landmark, Emperor Palace, Fortuna, Grandview, Kam Pek Paradise, L’Arc Macau, Legend Palace and Ponte 16.
Under the new Gaming Law, satellite casinos were granted a three-year transition period, running from January 1st, 2023, to December 31st, 2025, during which they can continue operating under the previous system.
After this period ends, satellite casino operators will only be able to manage the casinos through a management company, with gaming operators paying a management fee. SJM is the gaming operator to be most affected by the new measure.
Enhancements to MICE Facilities
In order to strengthen its competitiveness in the mid-sized MICE (Meetings, Incentives, Conventions, and Exhibitions) sector, the Grand Lisboa Palace Resort will be adding two new event spaces: Garden House, a 2,000-square-metre flexible indoor-outdoor venue, and Grand Hall, a 2,900-square-metre venue outfitted with state-of-the-art audio-visual and conference facilities.
According to SJM, this expansion will increase the resort’s overall hosting capacity by 132 percent.
Meanwhile, new function rooms and a refurbished grand ballroom will be introduced to Grand Lisboa, further enhancing the property’s appeal to high-value travelers and complementing its fine-dining offerings.
Grand Lisboa will also embark on a comprehensive upgrade program, including a full renovation of all typical rooms and a room inventory expansion of over 10 percent through the conversion of former junket areas into exclusive villas, mansions, and suites.
As this transformation unfolds, the adjacent Hotel Lisboa will be rolling out its own newly refurbished rooms in phases, supporting Grand Lisboa’s operations.
Occupancy rates at the Grand Lisboa Palace Resort improved significantly, rising 14.4 percent to 97 percent, while the Grand Lisboa Hotel saw a 5.7 percent increase to 98.7 percent. However, the average room rate at the Grand Lisboa Palace decreased by 9.9 percent to HK$1,191 ($152), while the Grand Lisboa Hotel’s average rate increased by 9.4 percent to HK$1,226 ($157).
SJM’s results have caused concern amongst analysts, as its Cotai property – the last integrated resort to open in Macau (excluding expansion projects on existing properties), has experienced a slow ramp-up and unimpressive results. However, the 2024 results could help lighten the mood slightly, if the group can maintain its momentum.
