Macau gaming operator SJM Holdings is entering what it describes as an “important inflection point” in 2026. Completed table redeployments and ongoing portfolio upgrades are expected to support progressive improvements in profit margins and returns, according to Chairman and Executive Director Daisy Ho.
In its latest annual report released on Monday, Daisy Ho said the group believes the foundations laid in 2025 — a year marked by structural transition — position the company for a shift in earnings quality.
“With table redeployments completed and portfolio upgrades coming onstream, we expect to see progressive improvement in profit margins and stronger returns from our directly operated portfolio,” she said.
The statement follows a year in which SJM undertook significant operational restructuring, including the closure of multiple satellite casinos under Macau’s revised gaming framework.
The move led to short-term revenue disruption and a loss attributable to owners of HK$429 million ($54.7 million) in 2025, despite broadly stable gross gaming revenue of HK$28.62 billion ($3.65 billion) and adjusted EBITDA of HK$3.2 billion ($408.2 million).
Daisy Ho emphasized that the strategic shift toward directly operated properties is central to improving long-term performance. “Through disciplined execution and the strategic and systematic redeployment of tables and resources into directly operated properties, we are strengthening the quality and sustainability of our earnings base,” she said.
She added that a new operating framework is taking shape, enabling the group to enhance earnings quality, optimize cost structures, and exercise greater control over product and service standards.
As part of this transition, SJM has been consolidating operations on the Macau Peninsula, reallocating gaming tables and slot machines from closed satellite venues to self-promoted properties. The group also completed acquisitions of additional gaming space within Hotel Lisboa and the L’Arc Hotel, integrating them into its directly operated portfolio.
Upgrades across key assets are expected to further support the margin outlook. Hotel Lisboa is set to introduce more than 400 refurbished rooms in the second half of 2026, alongside phased openings of new gaming areas, while Grand Lisboa Macau continues to expand its room inventory and enhance facilities.
In Cotai, Grand Lisboa Palace has increased table capacity following the satellite transitions, introducing new gaming areas such as the Sky Phoenix West Tower VIP area, while converting the Dragon Pavilion to support premium mass operations. These adjustments form part of a broader effort to optimize floor mix and enhance returns from directly operated assets.
Management said it will maintain a focus on disciplined execution, cost control, and reinvestment strategies. With the impact of satellite closures largely absorbed, SJM aims to improve operating efficiency and expand its base of higher-quality customers as it transitions into its next phase of growth.
