SJM’s Cotai integrated resort, Grand Lisboa Palace (GLP), recorded gross gaming revenue of HK$69 million (US$8.9 million) and an Adjusted Property EBITDA loss of HK$176 million (US$22.6 million) in its first quarter of operation through 30 September 2021, impacted by recent border restrictions between Macau and Zhuhai due to COVID-19.
Details of the HK$39 billion (US$5 billion) property’s early performance formed part of SJM’s 3Q21 results announcement overnight, which saw GGR climb 160.2% year-on-year to HK$2.47 billion (US$317.4 million), although that figure was slightly down on GGR of HK$2.65 billion (US340.5 million) reported in Q1 and HK$2.86 billion (US$367.5 million) in Q2.
According to information provided to analysts during Thursday’s earnings call, GLP – which is currently operating 540 hotel rooms, 150 mass gaming tables, 639 slot machines and 13 restaurants – won’t record break-even EBITDA until border restrictions with mainland China are significantly eased back, a scenario not likely until well into 2022.
SJM did say, however, that performance since 19 October, when Zhuhai dropped a mandatory 14-day quarantine measure on all arrivals from Macau, has been encouraging.
Group-wide, SJM recorded an Adjusted EBITDA loss of HK$460 million (US$59.1 million) in 3Q21, narrowed from HK$782 million (US$100.5 million) a year earlier. It remains the only one of Macau’s six concessionaires yet to reach EBITDA break-even since the start of the COVID-19 pandemic.
Loss attributable to owners of the company was HK$1.25 billion (US$160.6 million) compared with a loss of HK$1.03 billion (US$132.3 million) in 3Q20, mainly due to pre-opening costs and depreciation of GLP, plus interest expenses.
Peninsula property Grand Lisboa recorded GGR of HK$607 million (US$78.0 million) with an Adjusted Property EBITDA loss of HK$115 million (US$14.8 million), while SJM’s other self-promoted casinos – Casino Lisboa, Casino Oceanus at Jai Alai, Casino Eastern and Casino Taipa – saw a 100.8% year-on-year improvement in GGR to HK$375 million (US$48.2 million). Its 14 satellite casinos saw GGR increase 142% year-on-year to HK$1.41 billion (US$181.2 million).
“The third quarter of 2021 marked a major milestone in SJM’s history with the opening on 30 July of our Grand Lisboa Palace on Cotai,” said SJM Vice-Chairman and CEO, Dr Ambrose So.
“Our operating results for the quarter and year-to-date registered improvements over 2020, although SJM continued to be impacted by the COVID-19 pandemic that severely interrupted visitor flow to Macau. Nevertheless, with our new products, including a complete array of non-gaming activities, and the talents of our loyal staff, we are confidently poised to participate fully in Macau’s recovery in the coming years.”
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