SJM Holdings’ Q3 2023 Revenue Surge Offsets Previous Losses

SJM Holdings’ Macau operations are showing signs of recovery, despite a third-quarter loss of US$52.5 million. While gross gaming revenues remained flat at US$730 million for the quarter, the company’s revenue increased more than five times compared to Q3 2022 levels. The Grand Lisboa Palace in Cotai, the SJM resort, played a major role in this recovery, generating around US$188 million in gross gaming revenue for the quarter. The peninsula integrated resort Grand Lisboa contributed US$100 million, almost half of the revenues generated by the group’s Cotai property.

However, despite the loss, there is evidence of significant improvement in the company’s financial position. The Grand Lisboa Palace ended the quarter with an adjusted property EBITDA loss of US$3.5 million, significantly lower than the loss of US$29 million experienced in Q3 2022. The resort’s adjusted EBITDA was US$47.8 million, 16% higher than the US$28.6 million EBITDA loss in Q3 2022. The group’s total net revenues bounced by 471% year-on-year to settle at US$752 million.

SJM Holdings’ Chairman Daisy Ho expressed optimism about the company’s financial results, citing continued growth in adjusted EBITDA and steady progress in the ramp-up of Grand Lisboa Palace. She also highlighted the company’s support for the economic diversification of Macau through investments and sponsorships of cultural, educational, gastronomic, and sports activities.

Overall, the recovery of SJM Holdings’ operations in Macau is evident, with revenues continually boosted several times over the prior year’s levels. The loss in 2022 still impacts the company’s overall figures, but the booming operations in Macau are expected to offset the pandemic-induced losses in the near future.