SJM Holdings performed strongly in the first half, posting a 4.1% increase in adjusted EBITDA in the six months through 30th June as robust mass-market growth paced a 4.7% improvement in gaming revenue year on year to HK$44.11 billion (US$5.65 billion).
EBITDA totaled HK$4.44 billion as revenue from Hong Kong-listed SJM (0880)’s cash tables rose 29.1% and helped offset a 5.1% drop in take at the VIP tables.
VIP revenues have fallen off market-wide, a trend analysts attribute to the combination of a slowing Chinese economy and Beijing’s accelerated war on corruption.
SJM flagship Grand Lisboa was the highlight of the first half, achieving a 5% increase in EBITDA on a 5.7% increase in revenue and maintaining a hotel occupancy rate in excess of 95% on a 5.1% increase in average daily room rate to HK$2,344.
In all, the company led the market with a 23.5% share of gaming revenue, which included 24.6% of the mass market and 23.9% of VIP.
Net income was up 1.9% to HK$3.9 billion, equivalent to 69.5 cents per diluted share, a slight increase over the same period last year.
The company declared an interim dividend of 22 cents.
CEO Ambrose So was upbeat in his comments, saying, “SJM’s strong financial position allows to continue growing and upgrading our principal properties on Macau peninsula, whilst undertaking construction of our mega-resort on Cotai and increasing dividend returns to shareholders.”
The company added that it is making “good progress” on its 2,000-room Lisboa Palace on Cotai, which broke ground in February, and is on track for a 2017 opening.
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