Supplier News

China – SJM’s half year falls by 40 per cent

By Phil - 13 August 2015

Macau operator SJM Holdings has been hit hard by the slump in the money-making market with Gross Gaming revenue falling by 40.3 per cent for the first six months of the year ending June 30, to HK$26.3bn ($3.3bn).

As expected VIP revenue was hit hardest with a decrease in GGR of 48.7 per cent to HK$14.2bn. Mass market table revenue fell 26.8 per cent to HK$11.5bn.

During the same period slot machine operations revenue decreased by12.3 per cent compared with the year-earlier period.

Sociedade de Jogos de Macau, had a 22.3 per cent share of Macau’s gaming revenue, including 25.5 per cent of mass market table gaming revenue and 21.2 per cent of VIP gaming revenue.

The group maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$22,825 million as at 30 June 2015.

The Group’s flagship Casino Grand Lisboa saw decreased revenue of 43.5 per cent compared to the year earlier period.

The occupancy rate of Hotel Grand Lisboa decreased by 15.2 per cent from the year-earlier period to 80.1 per cent. Average daily room rate increased during the period by 2.3 per cent to HK$2,399.
Dr. Ambrose So, Chief Executive Officer of SJM Holdings Limited, said: “While challenging conditions persisted throughout the first half of the year, SJM has focused on enhancing customer service and controlling costs to the extent possible. We remain optimistic about the future of the Macau market, and we are proceeding with construction of the Lisboa Palace integrated resort on Cotai, on which substantial progress has been made and we are on target for completion in 2017.”

Construction work on the Lisboa Palace, the group’s integrated resort on Cotai, continued to make good progress in the first half of 2015. Foundation work was essentially completed by the first quarter of 2015, so that construction on the superstructure and basement levels is now well underway, and the project is on track for opening in 2017.

The fall was no surprise for analysts. Bernstein Research said: “In the near-term, we believe SJM will face continued margin pressure as the low-hanging fruit, in terms of cost control, has most likely been picked. The company is more gaming-focused and has less room to control labor cost compared to its competitors.”