SJM Holdings’ 13.9 percent year-on-year increase in second-quarter adjusted EBITDA was driven entirely by an easier comparison in casino hold, with the result declining after normalizing for win rates, according to CBRE Equity Research.
The Macau casino operator reported adjusted EBITDA of HK$783 million ($100.4 million) for 2Q26. However, CBRE said in a report issued Wednesday that normalized adjusted EBITDA would have fallen 2.1 percent year-on-year.
Analysts John DeCree and Max Marsh attributed the reported improvement to an ‘easy hold comparison’ with the prior-year period rather than stronger underlying operating performance.
SJM’s self-promoted properties secured a 10 percent share of Macau’s gaming market during the quarter, up 250 basis points year-on-year. CBRE said the increase was partly supported by a favorable swing in the company’s VIP hold rate.
Market share nevertheless improved by 40 basis points from the previous quarter following targeted customer-experience and product enhancements. It increased each month during 2Q26 and reached 10.8 percent in June, the highest monthly level since SJM completed the closure of its satellite casinos in by end of 2025.
Performance at Grand Lisboa Palace remained heavily dependent on VIP gaming. GGR at the Cotai property rose 14.4 percent year-on-year, driven entirely by the segment, as rolling chip volume increased 9.2 percent and the hold rate improved by 130 basis points.
By contrast, mass-market GGR declined 3.4 percent, while electronic gaming machine revenue fell 2.6 percent.
CBRE said Grand Lisboa Palace still needs to capture a larger share of Macau’s mass-market segment to generate stronger margins and cash flow, noting that VIP gaming remains volatile and highly competitive.
SJM is currently undertaking a major renovation of the property’s mass gaming floor. The work will be carried out in phases, but CBRE expects some operational disruption through its anticipated completion in the first half of 2027.
The operator has also reduced its workforce by 10 percent over the past seven months as it seeks to lower elevated labor costs following the satellite casino closures.
CBRE said SJM plans to implement additional operating-efficiency measures by year-end, with cash flow generated through lower operating costs and controlled reinvestment intended to support debt reduction.
