Macau casino giant SJM Holdings beat analyst estimates to notch a 12% increase in second-quarter earnings.
Adjusted EBITDA rose to HK$2.14 billion (US$274.4 million) in the three months ended 30th June, according to Bloomberg calculations, handily surpassing the average estimate of $1.99 billion from seven analysts polled by the business wire. Net income climbed to HK$1.91 billion during the second quarter from HK$1.7 billion a year earlier.
Gambling revenue from VIPs rose 10% to HK$29 billion in the first half, while mass-market revenue climbed 4% to $12.2 billion.
Macau raked in a record US$38 billion in gaming revenue last year, with two-thirds of that coming from VIPs. Forecasts this year are for the market to hit $44 billion-$45 billion. SJM (HKSE: 0880) joins MGM China Holdings (2282) and Melco Crown Entertainment (MPEL) in reporting higher Q2 profits in the booming Chinese gambling enclave as operators are benefiting from new attractions, more hotel rooms, an improved rail connection with the mainland and expanded immigration facilities. However, SJM saw its market share drop from 26.7% to 25.3% in the first half, a consequence in part of its lack of a property in the Cotai resort district. SJM directly operates three casinos on the Macau peninsula and licenses 17 others under various revenue- or fee-sharing agreements.
The company said it will pay an interim dividend of 20 Hong Kong cents a share, doubling last year’s payout.
