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China – Dismal year in Macau sees SJM post loss of US$994m

By - 8 March 2023

A year-on-year downturn in gaming revenues of 38 per cent has seen macau operator SJM Resorts post a loss HK$7.8bn (US$994m) in 2022 with VIP gaming down 64 per cent, mass gaming down 35 per cent and slots down by 23 per cent.

Net gaming revenue earned by SJM Resorts wasnHK$6,092m in 2022, as compared with HK$9,608m for the year 2021. Adjusted EBITDA of the Group was negative HK$3,095m, as compared with negative
HK$1,581m for the year 2021.

Loss attributable to owners of the Company was HK$7,798m, as compared with a loss HK$4,144m for the year 2021. SJM had a 15.8 per cent share of Macau’s gaming revenue, including 19.8 per cent of mass market table gross gaming revenue and 4.9 per cent of VIP gross gaming revenue.

The Grand Lisboa Palace, the Group’s integrated resort on Cotai, opened its doors to the public on 30 July 2021. Gross revenue of Grand Lisboa Palace was HK$687m, including gross gaming revenue of HK$346m and non-gaming revenue of HK$341m, as compared with gross gaming revenue HK$200m and non-gaming revenue HK$170m for the year 2021. After adjusting the pre-opening expenses of HK$453m, its Adjusted Property EBITDA was negative HK$969m, as compared with negative HK$423m for the year 2021.

Grand Lisboa’s gross revenue was HK$1,199m, including gross gaming revenue HK$1,067m and non-gaming revenue HK$132m, as compared with gross gaming revenue HK$2,152m and non-gaming revenue HK$170m for the year 2021, whilst its Adjusted Property EBITDA was negative HK$758m, as compared with negative HK$522m for the year 2021.

Grand Lisboa Palace Resort’s occupancy rate decreased by 16.5 per cent to 32.2 per cent for the full year,
whilst the average room rate increased by 0.2 per cent to HK$916. Hotel Grand Lisboa’s occupancy rate decreased by 12.6 per cent to 46.2 per cent for the full year, whilst the average room rate decreased by 10.2 per cent to HK$634.

Ms. Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, S.A., commented: “The entire Macau community has navigated through significant headwinds in 2022 under the lingering shadow of COVID-19. Nonetheless, we have proven our resilience despite the challenges, and have continued to prepare diligently for reopening of borders. Since the lifting of pandemic restrictions in January, SJM experienced an encouraging recovery in tourist visitation and patronage unleashed from latent demand, particularly over the Chinese New Year. This is testament to the strength of the Lisboa brand and our tireless improvement efforts over the pandemic-stricken years. The Grand Lisboa Palace will go on to launch new attractions in 2023, after which, our portfolio is expected to achieve a further uptick in profitability driven by synergy and cross-promotions.

“2022 is also a milestone year, as we successfully tendered for a 10-year concession. With unwavering confidence in the future of Macau, we have committed to a MOP14.033 billion investment blueprint, out of which MOP12 billion has been earmarked for expanding international tourism and non-gaming tourism elements. 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.”

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