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China – Revenue fall of 84 per cent paints bleak picture of Grand Lisboa Palace’s 2020

By - 23 February 2021

The full impact of the coronavirus pandemic produced some startling figures in the annual report of Macau operator SJM holdings with its flagship property Casino Grand Lisboa seeing its revenue fall by 84 per cent with its hotel occupancy falling just below 18 per cent for the year.

The operator said: “The group was severely impacted by the COVID-19 outbreak, which led to closure of Macau casinos for 15 days in February, as well as ongoing restrictions on entry from the Mainland, Hong Kong and other locations, curtailment of transportation channels and quarantine requirements.”

But rather than the enforced closure, it was the impact of travel that wiped out the company’s 2020 figures, leading in a loss of HK$3,025m, a decrease of 194.3 per cent from profit in previous year

Revenue for the whole company came in at HK$7,304m in 2020, a decrease of 78 per cent from the previous year. Adjusted EBITDA of the Group was negative HK$2,089m, a decrease of 149.6 per cent from the previous year. SJM had a 14.1 per cent share of Macau’s gross gaming revenue, including 19.7 per cent of mass market table gaming revenue and eight per cent of VIP gaming revenue.

The group said it maintained its strong balance sheet, with cash, bank balances, short-term bank deposits and pledged bank deposits totaling HK$6,273 million as at 31 December 2020. Construction of the Grand Lisboa Palace, the Group’s integrated resort on Cotai, has been completed and the project is undergoing final inspections by local government authorities. The Group anticipates opening the Grand Lisboa Palace during the first half of 2021.

Dr. Ambrose So, Vice-Chairman and Chief Executive Officer of SJM Holdings Limited, said: “Although SJM’s results for the full year 2020 reflect the severe reduction in travel and tourism caused by the COVID-19 pandemic, we are encouraged to see the beginnings of recovery starting in the fourth quarter. We expect continued gradual restoration of business throughout 2021, during which time our Grand Lisboa Palace will be inaugurated, marking our entry to the Cotai sector of the market.”

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