SJM Holdings Ltd, the parent company of Macau concession holder SJM Resorts, saw its net loss widen further in the three months to 30 September 2022 to HK$1.90 billion (US$242.0 million) on falling revenues linked to mainland China’s strict COVID-zero policies.
The Q3 loss was larger than the HK$1.25 billion (US$159.2 million) loss reported in the same period last year and pushed total loss attributable to owners of the company through the first nine months of 2022 to HK$4.65 billion (US$592.4 million).
Releasing its quarterly results late Monday, SJM said that net gaming revenue fell 59.9% year-on-year to HK$913 million (US$116.3 million) while Adjusted EBITDA was a loss of HK$968 million (US$123.3 million), more than double the HK$460 million (US$58.6 million) EBITDA loss recorded in 3Q21.
At Grand Lisboa Palace, the group’s integrated resort on Cotai which opened its doors in July 2021, gross revenue of HK$115 million (US$14.7 million) included GGR of HK$46 million (US$5.9 million) and non-gaming revenue HK$69 million (US$8.8 million). This compared with GGR of HK$69 million (US$8.8 million) and non-gaming revenue HK$59 million (US$7.5 million) in 3Q21. Adjusted Property EBITDA was a loss of HK$227 million (US$28.9 million).
Peninsula property Grand Lisboa’s recorded GGR of HK$101 million (US$12.9 million), down from HK$607 million (US$77.3 million) in 3Q21, and non-gaming revenue of HK$25 million (US$3.2 million) versus HK$44 million (US$5.6 million) a year earlier, with Adjusted Property EBITDA a loss of HK$223 million (US$28.4 million).
SJM said it had HK$4.54 billion (US$578.4 million) in cash, bank balances, short-term bank deposits and pledged bank deposits, and HK$26.8 billion (US$3.41 billion) in debt, as of 30 September 2022.
The company recently completed a refinancing of its syndicated banking facilities, consisting of a HK$9 billion (US$1.14 billion) term loan and a HK$10 billion (US$1.27 billion) revolving credit, of which HK$2.9 billion (US$369.5 million) remains undrawn.
“Results for the third quarter of 2022 continued to be severely impacted by travel restrictions and quarantine requirements,” said SJM Holdings Vice Chairman and CEO, Dr Ambrose So.
“In addition, following a local outbreak of COVID-19, all casinos and gaming areas in Macau were closed for 12 days in July by government order. In the current quarter, we look forward to the beginnings of gradual liberalization of travel to Macau, to the award of the new gaming concessions, and to SJM’s commitment to a continuing presence in Macau for the long term.”
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