Operator News
China – SJM’s loss widens as revenues fall by 60 per cent
By Phil - 31 October 2022
Losses widened for Macau’s original gaming operator SJM in its third quarter with revenues down by nearly 60 per cent.
Net gaming revenue of the Group in Q3 2022 was HK$913m, as compared with HK$2,276m in Q3 2021, and for the nine months ended 30 September 2022, net gaming revenue was HK$4,724m, as compared with HK$7,352m in the first nine months of 2021.
Losses came in at HK$1,895m, as compared with a loss of HK$1,248m in Q3 2021.
Gaming revenue, net of commissions and incentives of HK$39m (Q3 2021: HK$189m), earned by SJM Resorts, a subsidiary of the company, was HK$913m in Q3 2022, a decrease of 59.9 per cent from Q3 2021.
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 in Q3 2022 was HK$115m, including gross gaming revenue HK$46m and non-gaming revenue HK$69m, as compared with gross gaming revenue HK$69 million and non-gaming revenue HK$59m in Q3 2021. After adjusting the pre-opening expenses of HK$95m, its Adjusted Property EBITDA4 was negative HK$227m, as compared with negative HK$176m in Q3
Grand Lisboa’s gross revenue in Q3 2022 was HK$126m including gross gaming revenue of HK$101m and non-gaming revenue HK$25m, as compared with gross gaming revenue HK$607m and non-gaming revenue HK$44m in Q3 2021. Adjusted Property EBITDA was negative HK$223 million, as compared with negative HK$115m in Q3 2021.
For the nine months ended 30 September 2022, Grand Lisboa’s gross revenue was HK$902m, including gross gaming revenue HK$806mand non-gaming revenue HK$96m, as compared with gross gaming revenue HK$1,804m and non-gaming revenue HK$124m in the first nine months of 2021, whilst its Adjusted Property EBITDA was negative HK$597m, as compared with negative HK$330 million in the first nine months of 2021.
During Q3 2022, the Group’s VIP gross gaming revenue was HK$29m, a decrease of 91 per cent from
HK$324m in Q3 2021, mass market gross gaming revenue was HK$857m, a decrease of
57.2 per cent from HK$2,001m, and slot machine gross gaming revenue was HK$66m, a decrease
of 52.9 per cent from HK$140m.
Dr. Ambrose So, Vice-Chairman and Chief Executive Officer of SJM Holdings Limited, commented, “Results for the third quarter of 2022 continued to be severely impacted by travel restrictions and quarantine requirements. In addition, following a local outbreak of COVID-19, all casinos and gaming areas in Macau were closed for 12 days in July by government order. In the current quarter, we look forward to the beginnings of gradual liberalization of travel to Macau, to the award of the new gaming concessions, and to SJM’s commitment to a continuing presence in Macau for the long term.”
