Macau's operator SJM sees revenues, earnings up in H1 driven by "cautious" tourism return
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JM Holdings announced 2021 first half results on August 3. The group’s gross gaming revenue for the six months ended 30 June 2021 reached HK$5.51 billion (US$708.5 million), up from HK$4.89 billion (US$628.8 million) in the year-earlier period, marking a 12.5% increase.
Adjusted EBITDA improved by 48.2% to a negative HK$510 million (US$65.6 million) from a negative HK$984 million. The group’s Adjusted EBITDA Margin was a negative 9.8% compared with a negative 22.5% for the year-earlier period.
Despite the revenue increase, SJM also reported a widened loss, as it continues to suffer the negative impact of the pandemic. The group recorded a loss attributable to owners of HK$1.47 billion (US$189.0 million), including a loss of HK$1.47 billion (US$188.5 million) in the first half of 2021 versus a loss of HK$1.41 billion (US$181.3 million) in the first half of 2020: 3.8% greater.
Dr. Ambrose So, Vice-Chairman and Chief Executive Officer of SJM Holdings Limited, commented: “SJM’s operating results in the first half of the year reflect the cautious reopening of Macau for tourism.”
The company expects gross gaming revenues in Macau, as well as hotel, restaurant and other non-gaming activities that depend on tourism, to continue being impacted by the Covid-19 crisis. It is expected that certain travel restrictions will be lifted given the increasing level of vaccination throughout the region, although SJM does not expect “a return to pre-pandemic level of revenue” during 2021.
During the first half of the year, mass market gross table gaming revenue of the Group increased by 33.2% and VIP gross gaming revenue showed a decrease of 37.5% compared with the year-earlier period. During the same period, slot machine gross revenue increased by 12.7% compared with the year-earlier period.
“We anticipate continued growth in the second half of 2021, and we are very pleased that our Grand Lisboa Palace Resort is now open to welcome the increasing flow of visitors,” added the company’s CEO.
The group’s new integrated resort on Cotai opened its doors to the public on 30 July 2021. Its initial phase opening included the casino space and 300 guest rooms.
Grand Lisboa Palace Resort represented an investment of approximately HKD 39 billion (US$5 billion) and features three hotel towers –Grand Lisboa Palace Hotel, Karl Lagerfeld, and Palazzo Versace– and casino gaming with 150 table games approved by the Macau Gaming Inspection and Coordination Bureau.
"We are hoping that within this year, by the end of the year, we will be able to open up the entire property,” said Ms. Daisy Ho, Chairwoman of the Board of Directors of SJM.
