Macau gaming operator SJM Holdings Limited has reported a substantial improvement in its financial performance for the first half of 2024.
The company’s loss narrowed by 87.2 percent, from HK$1.26 billion ($162 million) in the 1H23 to HK$162 million ($20.8 million) in the first half of 2024.
Net revenue surged by 47.4 percent to HK$13.8 billion ($1.77 billion) compared to the same period last year, reflecting significant growth. Adjusted EBITDA also increased substantially, soaring by 275.9 percent to HK$1.7 billion ($222 million).
The company did not declare an interim dividend.
In a press release, SJM noted that the company’s recovery is accelerating, citing a 41.9 percent year-on-year increase in Macau’s gross gaming revenue (GGR) for 1H24. The Group’s GGR rose to nearly HK$4.62 million ($592 million), marking a substantial 50.3 percent year-on-year increase and reaching HK$13.79 billion ($1.77 billion).
SJM highlighted that, in the first half of 2024, non-rolling GGR for self-promoted casinos reached 135.4 percent of the non-rolling GGR from the same period in 2019. This indicates a strong recovery and reflects the company’s ongoing efforts to boost its non-rolling market segments.
Additionally, SJM believes these results show early positive outcomes from the “One Platform” initiative launched late last year. This new centralized platform is designed to better manage operating costs and enhance synergies across properties.
Market share
The improvement is also evident in market share. SJM reported that its GGR market share increased to 12.5 percent in 1H24, up from 11.8 percent in 1H23.
During this period, Grand Lisboa Palace (GLP) achieved a market share of 2.1 percent, while Grand Lisboa Macau reached 3.3 percent. These figures represent year-on-year gains of 0.8 percent and 0.4 percent, respectively.
This improvement aligns with the company’s goal of reaching a 5 percent market share in the coming years, although the progress made so far may not be highly significant.
Additionally, the “hotel, catering, retail, and leasing operations” segment reported a promising 35.7 percent yearly increase in revenue for 1H24. The average occupancy rate for the period was 94.2 percent, up from 85.9 percent for the six months ending in 2023.
Grand Lisboa Palace
SJM’s flagship property, Grand Lisboa Palace, saw gross revenue reach HK$2.95 billion ($379 million), driven by an increase in GGR to HK$2.32 billion ($298 million) and a strong non-gaming revenue contribution of HK$631 million ($81 million).
Adjusted Property EBITDA experienced a significant turnaround, totaling HK$192 million ($24.6 million), a notable recovery from a negative HK$292 million ($37.4 million) the previous year. This financial rebound highlights a strong recovery, improved revenue streams, and better operational efficiency across GLP’s offerings. The occupancy rate for 1H24 surged to 94.8 percent, up from 83.9 percent in 1H23.
Grand Lisboa and self-promoted casinos
Grand Lisboa, located in the Macau Peninsula, reported gross revenue of HK$3.8 billion ($487 million) for the period. This was driven by a significant increase in GGR, which reached HK$3.66 billion ($469 million), reflecting a 61.5 percent year-on-year rise.
Non-gaming revenue also showed stable growth at HK$140 million ($18 million). Additionally, Grand Lisboa’s Adjusted Property EBITDA amounted to HK$1.01 billion ($129.5 million), recovering from HK$473 million ($60.6 million) the previous year.
This strong performance underscores the property’s resilience and ongoing popularity. The hotel’s occupancy rate for 1H24 improved to 98.5 percent, up from 87.8 percent in 1H23.
Other self-promoted casinos also performed well, with non-rolling GGR at 103.9 percent of pre-pandemic levels in 2019.
