Operator News
Analysts doubtful Grand Lisboa Palace can achieve target market share despite 258 per cent revenue surge
By Phil - 10 May 2024
Despite growth of 258 per cent in its gross gaming revenues in the first quarter, analysts are doubtful that Grand Lisboa Palace can secure its target of a five per cent share of the Macau casino market.
Grand Lisboa Palace’s gross revenue in Q1 2024 was HK$1,418m, including gross gaming revenue of HK$1,111m (US$142m) and non-gaming revenue of HK$307m, as compared with gross gaming revenue HK$310m and non-gaming revenue HK$164m in Q1 2023. Grand Lisboa Palace’s Adjusted Property EBITDA was HK$88m, as compared with negative HK$230m in Q1 2023.
Daisy Ho, Chairman of SJM Holdings and Managing Director of SJM Resorts, said: “The quarter was characterised by strong performance across all our self-promoted properties, in both gaming and non-gaming sectors. It is a clear testament to the effectiveness of management’s focused efforts on improving our internal ROI and our team’s relentless drive for exceptional customer experiences. We have a full calendar of large-scale international events in the pipeline, designed to amplify SJM and the Lisboa brand’s visibility on the global stage, and provide multidimensional experiences for our guests as part of our mass market and overseas promotion strategy.”
JP Morgan said in a research nore: “We’re not yet convinced that GLP can garner its target share of 5% in the coming years.”
Vitaly Umansky of analytical group Seaport added: “We expect the ramp up at GLP to remain slow and the long-term ROI on the GLP investment is likely to be suboptimal. We remain concerned about Grand Lisboa Palace’s slow pace of ramp-up in what has been a strong Macau recovery.”
Overall, net gaming revenue of the Group increased in Q1 2024 to HK$6,464m, as compared with HK$3,705m in Q1 2023.
Adjusted EBITDA of the Group in Q1 2024 was HK$864 million, as compared with HK$31 million in Q1 2023.
Grand Lisboa’s gross revenue in Q1 2024 was HK$1,958m, including gross gaming revenue HK$1,877m and non-gaming revenue HK$81m, as compared with gross gaming revenue HK$928m and non-gaming revenue HK$64 million in Q1 2023. Grand Lisboa’s Adjusted Property EBITDA was HK$535m, as compared with HK$156m in Q1 2023.
