SJM reports US$83 million Q1 loss, slightly improved quarter-on-quarter

McFadden cites mandate for change in new SJM role

SJMs long-awaited Cotai integrated resort, Grand Lisboa Palace, is due to open in 2Q21.

Macau gaming concessionaire SJM Holdings reported a loss attributable to owners of the company of HK$647 million (US$83.3 million) in 1Q21, widened from a loss of HK$409 million (US$52.7 million) recorded 12 months earlier on the sustained impact of the COVID-19 pandemic.

The results included a 32.7% decline in gross gaming revenue for the quarter to HK$2.65 billion (US$341.2 million), down from HK$3.94 billion (US$507.3 million) in 1Q20 but improved from revenue of HK$2.43 billion (US$312.9 million) in the final quarter of last year.

An Adjusted EBITDA loss of HK$319 million (US$41.1 million) was 60.0% worse off than a loss of HK$200 million (US$25.8 million) in 1Q20 but also slightly improved from an Adjusted EBITDA loss of HK$323 million (US$41.6 million) in Q4.

Ahead of the impending opening of its Cotai integrated resort Grand Lisboa Palace, SJM remains the only Macau gaming operator yet to achieve break-even EBITDA since the easing of border restrictions with mainland China with its usually strong VIP segment taking a significant hit.

VIP GGR declined 59.4% year-on-year to HK$485 million (US$62.4 million), with mass market revenue down 21.3% to HK$2.05 billion (US$263.9 million) and slot machine GGR down 17.3% to HK$116 million (US$14.9 million).

At current flagship Grand Lisboa, located on the Macau peninsula, GGR declined 83.4% to HK$585 million (US$75.3 million) in 1Q21, resulting in an Adjusted EBITDA loss of HK$115 million (US$14.8 million).

Self-promoted casinos, comprising Casino Lisboa, Casino Oceanus at Jai Alai, Casino Eastern and Casino Taipa, saw GGR down 72.2% year-on-year to HK$1.35 billion (US$173.8 million) with an Adjusted EBITDA loss of HK$117 million (US$15.1 million).

Meanwhile, the 13 satellite casinos operating under SJMs license reported GGR of HK$1.69 billion (US$217.6 million), down 19.9% year-on-year, with an Adjusted EBITDA loss of HK$6 million (US$772,000).

SJM provided little comment on its results from management via a Hong Kong Stock Exchange filing but confirmed that Grand Lisboa Palace is currently undergoing final inspections by local government authorities and is expected to open before the end of June.

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