SJM Holdings said its Q1 loss attributable to owners of the company was HK$647 million, an increase of 58.2% from the same period last year.
Gross gambling revenue declined 32.7 percent, while the group’s Adjusted EBITDA loss widened to $3`9 million from $200 million.
Although Macau’s casinos were forced to close for two weeks in February of last year as the pandemic hit, the month prior to that was strong in terms of visitation and revenue.
As the Covid-19 crisis descended upon, first, China, then the world, the six Macau operators have not been idle in their CSR efforts, in spite of the mandated casino closures and reopenings under difficult economic conditions.
SJM Holdings said it expects to raise net proceeds of HK$1.24 billion ($159.6 million) and MOP298 million ($37.2 million) from an issue of senior notes in Hong Kong and Macau. The notes will carry interest of 3.9 percent.
SJM Holdings said it plans to raise funds through an issue of Hong Kong-dollar and Macau-pataca-denominated notes to refinance existing debt.
SJM Holdings is targeting a June opening for its Grand Lisboa Palace, though the offering will be limited at first and some analysts doubt that the company will claw back its market share in the short term at least.
Consensus estimates for Q1 earnings at Macau’s six operators may be too high, with corporate EBITDA likely to be lower than the prior quarter due to an uneven recovery and higher expenses, Morgan Stanley says.
Sociedade de Jogos de Macau partnered with the Macau Government to support a mega “Macao Week in Hangzhou” roadshow from March 26 to 29.
Speculation has emerged that Pansy Ho’s selldown of her shares in MGM is a preparatory move for her to take control of the family business, SJM Holdings.
SJM Holdings says it now expects to open its delayed Grand Lisboa Palace on Cotai in the second quarter of this year and is eyeing “selective” opportunities for expansion in Asia.
SJM Holdings said it had seen the beginnings of a recovery in Q4, after reporting a 78 percent drop in revenue for 2020 and swinging to an adjusted EBITDA loss of HK$3.02 billion.
In a series of announcements in recent days, all six Macau operators have now announced staff bonuses to most of their employees, generally equivalent to one month of extra pay.