Macau concessionaire SJM Holdings reported Adjusted EBITDA of HK$31 million (US$4.0 million) in the three months to 31 March 2023, reversing an EBITDA loss of HK$474 million (US$60.5 million) in 1Q22 and moving back into the black for the first time in three years.
The company did, however, still fall to a loss attributable to owners of the Company of HK$869 million (US$111 million), albeit narrowed from a HK$1.28 billion (US$164 million) loss a year earlier.
SJM’s Q1 result included a 53.0% year-on-year increase in gross gaming revenues to HK$3.89 billion (US$496 million) – aided by a 67.0% increase in mass market GGR to HK$3.44 billion (US$439 million) and 81.3% increase in slots GGR to HK$252 million (US$32.1 million). VIP GGR fell by 41.6% to HK$201 million (US$25.6 million).
Despite showing considerable year-on-year improvement following the easing of Macau’s border restrictions from 8 January, SJM’s results were mixed. While peninsula property Grand Lisboa generated Adjusted Property EBITDA of HK$156 million (US$19.9 million), reversing a HK$128 million (US$16.3 million) loss in 1Q22, Cotai resort Grand Lisboa Palace (GLP) saw its EBITDA loss widen from HK$216 million (US$27.6 million) to HK$230 million (US$29.3 million). GGR at GLP increased from HK$156 million (US$19.9 million) to HK$310 million (US$39.5 million) – still well below the HK$928 million (US$118 million) generated at Grand Lisboa.
Elsewhere, GGR at the company’s nine satellite casinos grew by 15.3% to HK$1.71 billion (US$218 million) while its self-promoted casinos – Casino Lisboa, Casino Oceanus at Jai Alai and share from Ponte 16 – grew by 168% to HK$941 million (US$120 million).
“In the first quarter of 2023, after several years facing challenges caused by the pandemic, SJM has turned an important corner by returning to positive Adjusted EBITDA,” said Daisy Ho, Chairman of SJM Holdings and Managing Director of SJM Resorts, S.A.
“Our revenues from both gaming and non-gaming activities showed important gains during the quarter, and we expect that our team’s efforts will pay off further in future, especially as our Grand Lisboa Palace Resort with all of its features ramps up into a growing market.
“Indeed, as early results for the second quarter of 2023 indicate, we are justifiably optimistic about the future of SJM and of Macau.”
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