SJM Holdings H1 reports first positive EBITDA since 2019

SJM Holdings, one of Macau’s leading 바카라 operators, has reported impressive H1 2023 results, marking a significant turning point for the company’s financial performance.

Strong financial recovery and significant developments

The company reported its first six-month stretch of positive earnings before interest, tax, depreciation, and amortization (EBITDA) since 2019. This achievement marks a significant recovery trajectory that the company with a total revenue for the first half of 2023 soared by an impressive 126.7 percent reaching HK$9.36 billion (€1.09 billion) compared to H1 2022. The primary catalyst for this substantial revenue growth was the gradual easing of Covid-19 restrictions in Macau, allowing SJM Holdings to capitalize on increased consumer activity.

Breakdown of revenue by property

• Grand Lisboa Palace: Partially opened in 2021, this property generated HK$1.43 billion in revenue during H1 2023, comprising HK$1.03 billion in gross gaming revenue (GGR) and HK$396 million in non-gaming revenue. This marks an impressive year-on-year revenue growth of HK$1.0 billion.
• Grand Lisboa: A separate entity from Grand Lisboa Palace, this property reported revenue of HK$2.40 billion, primarily driven by GGR, which totaled HK$2.26 billion. Non-gaming revenue contributed an additional HK$137 million to the property’s earnings, reflecting a substantial year-on-year increase of HK$1.62 billion.
• Other Casinos: This category, which includes Jai Alai Hotel and Sofitel at Ponte 16, contributed HK$2.20 billion to SJM Holdings’ revenue, marking an impressive growth of 200.3 percent.
• Satellite Casinos: SJM’s satellite 바카라s collectively generated HK$3.80 billion in 바카라 revenue during the quarter, with the company operating nine smaller venues during H1.

Net Gaming Revenue surges

SJM Holdings’ net gaming revenue for the period reached HK$8.69 billion for the six months, reflecting a substantial improvement of 128.2 percent. This performance was primarily attributed to the operations of SJM subsidiary SJM Resorts.

Progress despite increased marketing costs

While the total loss for the first half of 2023 amounted to HK$1.19 billion, this figure represents a significant improvement of HK$1.56 billion compared to the previous year. Operating and administrative expenses, which were the most substantial expenses of the half-year at HK$4.32 billion, were offset by an increase in marketing and promotional expenses, reaching HK$1.56 billion. This increase can be attributed to SJM’s heightened marketing efforts, particularly in relation to the Grand Lisboa Palace property.

Macau’s ongoing recovery

SJM Holdings’ financial performance serves as an indicator of Macau’s continued recovery from the Covid-19 pandemic. The company highlighted a robust recovery in visitation during the first half of the year, with visitor arrivals expanding by an impressive 236.1 percent year-on-year. Notably, in July, just after the quarter’s end, Macau’s gross gaming revenue (GGR) reached a post-pandemic peak of MOP16.66 billion.

First six months as a new concessionaire

H1 2023 also marks the first half-year period since SJM was selected as one of the operators to receive a concession from Macau’s government, allowing gambling operations in Macau until 31 December 2032. SJM’s commitment to the concession involved a substantial investment of MOP14.03 billion in Macau, with MOP12.0 billion allocated to non-gaming ventures.

During this period, SJM witnessed significant changes in leadership, with Dr. So Shu Fair departing from the role of CEO, executive director, and vice-chairman of SJM in April. Currently led by Chair Daisy Ho as executive director, the company has embarked on a program of non-gaming events and investments under the new concession, further contributing to its optimistic outlook as Macau steadily recovers from the pandemic.

Ms. Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, S.A., (pictured above), commented,“SJM Holdings’ results for the first half of 2023 reveal the first six-month period of positive Adjusted EBITDA since 2019. At the same time, we have begun our programme of non-gaming events and investments under the new Concession and continued the ramp-up of Grand Lisboa Palace Resort. As Macau recovers steadily from the pandemic, we are facing the future with optimism.”

SJM Holdings’ exceptional financial performance in H1 2023 positions the company as a key player in Macau’s resurgence of the gaming sector.