Lack of satellite casinos continues to drive revenue comparisons down for SJM

Grand Lisboa Macau was up 7.1 per cent, though, withCasino Lisboa, Casino L’Arc Macau, and Casino Oceanus up 85.7 per cent

Macau operator SJM Holdings saw its revenues fall by 18.5 per cent over the last six months year-on-year to HK$12,084m, as the lack of contributions from satellite casinos bit hard, resulting in a market share
of 9.8 per cent.

Adjusted EBITDA increased by 3.3 per cent to HK$1,701m, against a broader Macau operating environment characterised by cost inflation and elevated reinvestment levels, which continued to exert pressure on industry profitability, and reflected the continued improvement in the Group’s operational efficiency.

The Group’s other Peninsula properties delivered strong performance post-restructuring, supported by the progressive expansion of product and service enhancements. Aggregate GGR from Casino L’Arc Macau, the expanded gaming area at Casino Lisboa and Casino Oceanus at Jai Alai increased by 85.7 per cent year-on-year to HK$4,931m. Meanwhile, revenue from the Hotel, Catering, Retail, Leasing and Related Services segment increased by 1.8 per cent year-on-year. Grand Lisboa Palace Resort Macau
Grand Lisboa Palace Resort Macau recorded total revenue of HK$3,938m for the first half of 2026,
with GGR rising 12.9 per cent year-on-year to HK$3,315m.

Despite revenue growth, Adjusted Property EBITDA decreased to HK$22m, as restructuring-related costs following the satellite casino closures, increased customer reinvestment to support retention, and market-wide cost inflation offset the revenue gains. Hotel occupancy edged down slightly to 92.9 per cent for the first half of 2026, reflecting a more disciplined approach to room reinvestment.

Grand Lisboa Macau recorded total revenue of HK$4,010m for the first half of 2026, with GGR
growing 7.1 per cent year-on-year to HK$3,838m. Adjusted Property EBITDA was HK$860m,
compared with HK$863m in the prior year. Hotel occupancy for the first half of 2026 was 98 per cent, broadly consistent with the first half of 2025.

Other properties comprising Casino Lisboa, Casino L’Arc Macau, and Casino Oceanus at Jai Alai,
delivered a strong performance in the first half of 2026, with GGR increasing by 85.7 per cent year-on-year to HK$4,931m. Such an increase was mainly attributable to contributions from the expanded gaming area at Casino Lisboa and Casino L’Arc Macau.

Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, commented, “The first half of 2026 marked the completion of a significant structural transition for the Group as we assumed direct management of our entire portfolio. This has strengthened our control over customer experience, cost structure and earnings quality across our properties, with the benefits already reflected in our operating performance and margin expansion. For the remainder of the year, we remain focused on enhancing the distinct positioning of our properties, further elevating our offerings, and strengthening our appeal across targeted market segments. Through disciplined execution of these initiatives, we aim to deepen customer loyalty, improve portfolio performance, and support sustainable long-term growth.”

On the Macau Peninsula, the expansion of capacity and enhancement of the product offering are intended to reinforce the competitiveness of the Group’s established downtown portfolio. At Hotel Lisboa Macau, the second phase of Crystal Palace gaming area opened on 10 August 2026, further expanding gaming capacity and customer choice. The refurbishment of approximately 400 hotel rooms owned by the company’s controlling shareholder has also been completed.

At Grand Lisboa Macau, the refurbishment of the deluxe villas and mansion is expected to be completed ahead of the 2027 Lunar New Year. Meanwhile, the opening of Lisboa Square in April 2026 introduced five new dining concepts with a strong Asian focus, while the renovation of the Grand Ballroom has also been completed. Collectively, these initiatives are expected to enhance the overall guest experience, increase cross-property visitation and strengthen the Peninsula portfolio’s ability to capture a greater share of customer spending.

At Grand Lisboa Palace Resort Macau, the Group remains focused on enhancing gaming mix, optimising
floor utilisation and improving returns on invested capital. Following the redeployment of resources from the former satellite casinos, table capacity was increased and new gaming areas were introduced, including the Sky Phoenix West Tower VIP area. Dragon Pavilion was also reconfigured to support premium-mass operations. Further enhancement works to the main gaming floor have been rolled out progressively, with the objective of further improving productivity, increasing the property’s contribution
to the Group’s earnings and boosting overall property yields.