GGRAsia – SJM Holdings 1H loss widens, gaming revenue down 25%

SJM Holdings 1H loss widens, gaming revenue down 25%

Macau-based casino operator SJM Holdings Ltd posted a first-half net loss of nearly HKD 2.76 billion (US$351.2 million), compared with a loss of HKD 1.47 billion in the first half. during the first six months of 2021. This was on revenues that fell 20.9% year-on-year to HKD 4.13 billion, due to poor performance in both the mass market segments and VIP games, the company said in a Hong Kong stock exchange filing on Monday.

The Group’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the first half of 2022 was negative at nearly HKD 1.18 billion, compared to negative HKD 510 million recorded in the period of the year. ‘last year.

The company said the Covid-19 pandemic “continued to have a material adverse effect” on the company’s first-half performance. He stressed that he expects gross gaming revenue in Macau – as well as hotels, restaurants and other non-gaming businesses that rely on tourism – “to continue to be negatively impacted by Covid-19 for some indefinite period in the future”.

SJM Holdings said, “We do not expect a return to our pre-pandemic revenue level in 2022.

“Even after the travel restrictions are lifted, furthermore, it is not possible to predict whether there will be any lingering economic effects and health issues caused by Covid-19 that will affect our business for a longer period of time. “

In a press release on Monday, the company’s vice president and general manager, Ambrose So Shu Fai, also confirmed that the group would participate in the new public tender for Macau green fees, which is accepting offers until September 14.

“We look forward to successfully participating in the bidding for Macau’s new gaming concessions later this year and to continuing our presence in Macau for many years to come,” Mr. So said.

SJM Holdings’ board of directors did not recommend an interim dividend for the six months ending June 30. He had already not recommended an interim dividend in 2021.

The group’s net gaming revenue for the six months to June 30 fell 24.9% year-on-year to just above HKD 3.81 billion.

Gross revenue from mass-market table games fell 21.7% year-on-year to HKD 3.44 billion. Gross VIP revenue was HKD 386.9 million during the period, down 54.8% from a year earlier.

Slot machine revenue fell 6.3% year-on-year to HKD 248.0 million.

SJM Holdings’ existing self-promoted casinos are located at the following properties: Grand Lisboa Palace (pictured); Greater Lisbon; and Hotel Lisbon. Other self-promoted units include: Oceanus Casino in Jai Alai – including the gaming area in the Jai Alai building; Eastern Casino; and Casino Taipa. As of June 30, the company also operated 14 gambling sites promoted by third parties, i.e. so-called satellite casinos.

Last month, SJM Holdings announced that it had made a refinancing its syndicated bank facilities, consisting of a HKD 9 billion term loan and a HKD 10 billion revolving credit facility.