SJM reports 12.5% profit gain for 2019

SJM Holdings posted a 12.5 percent gain for 2019 and said it was in a solid position to weather the challenges posed by the Covid-19 outbreak.

Profit attributable to owners of the company was HK$3.2 billion ($411.8 million), while adjusted EBITDA rose 13.2 percent to HK$4.21 billion. The company said net gaming revenue dipped 1.5 percent to HK$33.16 billion. 

“We are pleased to report increases in adjusted EBITDA and net profit for 2019, constituting our best results in the past five years, whilst construction work was completed on Grand Lisboa Palace,” Vice Chairman and CEO Ambrose So said. “SJM has entered 2020 in a strong position to face the year’s challenges. We extend our sympathy to all who have been affected by the coronavirus, and we pledge our continued support to the Macau Government in combating its spread.” 

SJM had a 14.1 percent share of Macau’s gross gaming revenue, including 18.2 percent of mass market table gaming revenue and 10.4 percent of VIP gaming revenue. 

The company said its flagship Casino Grand Lisboa had a decrease in gross gaming revenue for the year of 17.6 percent and an increase in adjusted Grand Lisboa EBITDA of 12.9 percent.

Grand Lisboa Hotel’s occupancy rate decreased by 1.7 percent to 93.8 percent for the full year, whilst the average room rate increased by 0.9 percent to HK$1,508. 

SJM said it has now completed construction work on its Grand Lisboa Palace on Cotai and it has applied for the relevant operational licenses for late 2020. It gave no further comment on the likely opening date in its earnings release. 

The company was the monopoly holder in Macau before the market was opened up for competition, but has seen its market share decline as newer properties on the Cotai Strip have come online.