SJM Holdings reported a loss attributable to owners of HK$429 million ($54.9 million) for the year ended December 31st, 2025, reversing a small profit recorded a year earlier.
According to financial results released on Thursday, the company’s adjusted EBITDA declined 15 percent to HK$3.2 billion ($409.2 million) amid operational restructuring tied to Macau’s evolving regulatory framework and the closure of satellite casinos.
The Macau legacy gaming operator said total net revenue reached HK$28.17 billion ($3.6 billion) in 2025, down 2.1 percent from 2024, while net gaming revenue fell 2.4 percent year-on-year to HK$26.2 billion ($3.35 billion). Income from hotel, catering, retail, leasing and related services increased 4.7 percent to HK$2.29 billion ($293 million).
The company attributed the weaker performance primarily to structural adjustments during the year as Macau’s gaming sector continued its gradual recovery following the pandemic period.
According to official figures, Macau’s gross gaming revenue (GGR) reached MOP247.4 billion ($30.9 billion) in 2025, representing a 9.1 percent year-on-year increase, highlighting the competitive environment weighing on operators in the city.
Satellite casino closures reshape operations
The phasing out of satellite casinos represented one of the most significant operational developments during the year.
Management said the group’s results were ‘shaped by the progressive closure of satellite casinos in accordance with Macau’s updated regulatory framework’, adding that the process ‘resulted in short-term revenue dislocation’ and placed pressure on profitability during the transition period.
As of December 31st, 2024, SJM operated nine satellite casinos, including Casino Casa Real, Casino Landmark, Casino Fortuna and Casino Grandview. During 2025, however, the company progressively closed most of these venues in line with Macau’s updated concession rules, which require satellite casinos to transition or cease operations following a three-year adjustment period.
Satellite casinos had historically represented a meaningful portion of SJM’s gaming footprint. In 2025, they generated HK$9.77 billion ($1.25 billion) in gross gaming revenue.
By the end of 2025, eight of the nine satellite casinos had ceased operations. Casino L’Arc Macau was converted into a self-promoted casino after SJM acquired the L’Arc Hotel property late in the year.
Management noted that the majority of closures took place in the second half of the year, particularly in the fourth quarter, creating a temporary disruption in revenue streams. Following the closures, the company redeployed gaming tables and operational resources to directly operated properties as part of its operational consolidation strategy.
GLP revenue rises 12% but EBITDA plunges 67%
SJM’s flagship Cotai integrated resort, Grand Lisboa Palace (GLP), recorded gross revenue of HK$7.37 billion ($942 million) in 2025, representing an increase of 12.1 percent from 2024.
The total included HK$6.07 billion ($776 million) in gaming revenue and HK$1.31 billion ($168 million) from non-gaming operations. Gaming revenue rose from HK$5.24 billion ($670 million) a year earlier, while non-gaming revenue edged slightly down from HK$1.34 billion ($171 million).
Despite the revenue growth, the property’s Adjusted Property EBITDA fell sharply to HK$165 million ($21.1 million) from HK$499 million ($63.8 million) a year earlier, representing a decline of HK$334 million ($42.7 million), or 66.9 percent, year-on-year.
Hotel performance at the resort remained strong, with occupancy reaching 96.5 percent for the full year. The average room rate rose 4.1 percent to HK$1,240 ($159).
On the Macau Peninsula, the Grand Lisboa property generated gross revenue of HK$7.7 billion ($985 million), including HK$7.55 billion ($965 million) from gaming operations.
Adjusted Property EBITDA fell to HK$1.76 billion ($225 million) from HK$2.09 billion ($267 million) in the prior year.
Hotel metrics at Grand Lisboa remained resilient. Occupancy averaged 98.2 percent, while the average daily room rate increased 13.8 percent to HK$1,395 ($178).
Strategic repositioning underway
SJM said it has begun integrating former satellite customers into its directly operated portfolio and expanding gaming capacity at key properties.
Management noted that redeployment initiatives included the introduction of new gaming areas at Grand Lisboa Palace and the phased development of gaming facilities at the Lisboa complex.
The company also highlighted continued investment in non-gaming attractions aligned with Macau’s economic diversification strategy, stating it hosted or participated in nearly 70 large-scale events across areas such as gastronomy, sports, culture and MICE activities during the year.
‘With the structural effects of satellite closures largely absorbed and redeployment initiatives completed’, the company said it will focus on improving operating efficiency, strengthening its customer base and enhancing property offerings in the coming years.
