Macau concessionaire SJM Holdings saw its net revenue grow 9.7% to HK$17.2 billion in the first half of 2018, buoyed by a better performance from the mass market segment.
Mass gaming revenue grew 13.3% year-on-year for the period, compared with a slight 1.4% increase in VIP, however the company’s Macau gaming market share continued to fall, down from 16.7% in 1H17 to 15.1% including 20.2% of mass share and 12.2% of VIP.
Nevertheless, SJM saw strong improvement in 2Q18 where gross gaming revenue reached HK$11.1 billion. Mass revenue grew 20% in the second quarter to HK$5.7 billion with VIP up around 4% to HK$5.1 billion.
Adjusted EBITDA for the six months to 30 June 2018 grew 29.9% to just under HK$2 billion with profit up 56.8% to HK$1.5 billion.
SJM’s flagship property Grand Lisboa saw GGR increase 8.1% to HK$7.9 billion and EBITDA grow 29.0% to HK$999 million, with occupancy up 3% year-on-year to 96.3%.
Revenue at the company’s other self-promoted casinos – Casino Lisboa, Casino Oceanus, Jai Alai and Casino Taipa – declined 1.5% to just over HK$3 billion while revenue derived from its 16 satellite casinos grew 10.0% to HK$11 billion.
Despite SJM’s revenue growth, analysts from brokerage Bernstein said they “still believe SJM will continue to underperform the market until 2020 until it opens and ramps up its Cotai property (Grand Lisboa Palace).
In its filing to the Hong Kong Stock Exchange, SJM said it is aiming to complete construction of Grand Lisboa Palace by the end of this year in order to open for business in the second half of 2019.
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