Key Takeaways:
Bucking a positive trend in the sector, SJM posted lower gaming revenues and profits as it reshapes its business to comply with new Macao regulations
Gaming revenue and adjusted property EBITDA also fell at its flagship Grand Lisboa venue
Macao's gambling industry has regained its luster, but one casino operator is shining less brightly than the rest.
SJM Holdings Ltd. (0880.HK), a veteran of the Macao casino scene, is in the throes of a sweeping restructuring that has wiped the sheen off its earnings results.
In October, Macao's overall gaming revenue surged nearly 16% from the same month a year earlier to a post-pandemic record of 24.09 billion patacas ($3.01 billion). Robust tourist flows, high hotel occupancy and bustling casino floors were all signs that the gambling capital had roared back to life.
But for SJM it was a different story. The company posted relatively gloomy earnings for the third quarter. Gaming revenue fell 4.7% to HK$7.14 billion ($919 million) from a year earlier and 1.8% from the prior quarter. Adjusted EBITDA declined 15% year on year to HK$881 million, although it rose 28% compared with the second quarter. SJM was the only one of Macao's six concessionary operators to report a fall in takings from the gaming business.
The SJM bottom line was even more alarming. Net profit plunged 91% to a mere HK$9 million from the HK$101 million profit recorded a year earlier. For the first nine months, the company ...
