Supplier News
China – SJM Holdings slides further in second quarter
By Phil - 8 August 2016
Sociedade de Jogos de Macau, the group that once held a monopoly over casinos in Macau, delivered worse than expected second quarter results with gaming revenue down by 20.7 per cent, Adjusted EBITDA down 27.8 per cent and profit attributable to owners of the company down 38.7 per cent.
Dr. Ambrose So, Chief Executive Officer of SJM Holdings Limited, said: “Though challenging conditions persisted in the first half of 2016, SJM maintains its confidence in and commitment to the future of Macau. We are continuing to make good progress on construction of our Grand Lisboa Palace integrated resort, and around the end of the year we expect to complete the renovation of the Jai Alai complex as well as important renovations of the lobby and hotel rooms at Grand Lisboa. We are pleased to declare an interim dividend of HK6 cents per share.”
Mass market table gaming revenue of the group decreased by 11.5 per cent and VIP gaming revenue showed a decrease of 28.5 per cent during the first half of 2016, compared with the year-earlier period. During the same period, slot machine operations revenue decreased by 8.3 per cent compared with the year earlier period.
Sociedade de Jogos de Macau had a 20 per cent share of Macau’s gaming revenue, including 23.1 per cent of mass market table gaming revenue and 18.4 per cent of VIP gaming revenue.
The Group maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$14,619m as at 30 June 2016.
The Group’s flagship Casino Grand Lisboa decreased revenue, Adjusted Property EBITDA and attributable profit by 25.3 per cent, 30.8 per cent and 35.2 per cent, respectively, as compared to the year-earlier period.
The occupancy rate of Hotel Grand Lisboa increased by 10.4 per cent from the year-earlier period to 90.5 per cent. Average daily room rate decreased during the period by 32.9 per cent to HK$1,609. The Grand Lisboa Palace, the Group’s integrated resort on Cotai continued to make good progress on construction during the first half of 2016.
