Macau gaming concessionaire SJM Holdings has confirmed a loss attributable to owners of the company of HK$7.80 billion (US$994 million) in 2022, impacted by a near 38% decline in gaming revenues and a substantial impairment charge on property costs and closures.
The company published its FY22 financial results late Wednesday, with gross gaming revenue falling by 37.7% year-on-year to HK$6.46 billion (US823 million). The decline included a 64.2% drop in VIP GGR to HK$486 million (US$62 million), 34.5% drop in mass market GGR to HK$5.55 billion (US$707 million) and 22.5% drop in slot machine GGR to HK$416 million (US$53 million).
Group-wide Adjusted EBITDA loss widened from HK$1.58 billion (US$201 million) in 2021 to HK$3.10 billion (US$395 million) in 2022 as all properties were impacted by the effects of the COVID-19 pandemic and related border closures in Macau and mainland China.
Despite its struggles, SJM Holdings Chairman Daisy Ho described 2022 as a “milestone year” for the company after being awarded a new 10-year gaming concession.
“With unwavering confidence in the future of Macau, we have committed to a MOP$14.0 billion (US$1.78 billion) investment blueprint, out of which MOP$12 billion (US$1.53 billion) has been earmarked for expanding international tourism and non-gaming tourism elements,” she said.
“True to its purpose of protecting the unique heritage of Macau and innovating for the future, SJM will be combining our strategic tourism assets and network advantages to deliver an authentic and immersive Macau experience, to promote an ecosystem which supports all-rounded diversification across broad sectors of the economy, and to solidify Macau’s status as a world centre of tourism and leisure.”
SJM’s FY22 results included a 73% year-on-year increase in GGR at recently opened Cotai resort Grand Lisboa Palace to HK$346 million (US$44 million) – mainly due to the property enjoying its first full year of operations. However, peninsula IR Grand Lisboa suffered a 50.4% decline in GGR to HK$1.07 billion (US$136 million), while other self-promoted casinos fell by 15.9% to HK$1.25 billion (US$159 million) and satellite casinos by 41.9% to HK$3.79 billion (US$483 million).
As reported by Inside Asian Gaming earlier in the week, SJM’s FY22 loss includes a HK$1.21 billion (US$154 million) impairment charge on costs associated with past refurbishments made to peninsula property Jai-Alai and the closure of seven casinos previously operating under its gaming concession.
RelatedPosts
