SJM net profits fall 148pct y-o-y drop in Q1 to HK$409 mln

Gaming operator SJM Holdings Limited has reported a 148 per cent year-on-year drop in net profits to some HK$409 million (US$52.7 million) in losses for the first quarter of this year, with total net revenue falling 60 per cent year-on-year to some HK$3.47 billion, the company’s latest financial report indicates.

The company’s adjusted EBITDA also declined 118.6 per cent year-on-year to a negative HK$200 million, with gross gaming venues generated by SJM casinos falling 60 per cent to HK$3.40 billion.

‘First quarter results of the Group were severely impacted by the COVID-19 the outbreak, which led to the closure of Macau casinos for 15 days in February, as well as ongoing restrictions on entry from the Mainland, Hong Kong and other locations, curtailment of transportation channels and quarantine requirements,’ a note signed by SJM’s Executive Director, Daisy Ho, indicates.

SJM’s VIP gross gaming revenue went down 70 per cent year-on-year to some HK$1.19 billion as mass-market gross gaming revenues dropped 58 per cent to HK$2.60 billion.

By the end of the first quarter of this year, SJM operated an average of 218 VIP gaming tables, 933 mass-market gaming tables and 1,595 slot machines.

‘The COVID-19 outbreak will continue to have a material effect on the Group’s operating results in 2020 and possibly beyond, the extent of which depends on future conditions and developments, including the progress of the outbreak, the lifting or extension of protective measures and the overall condition of the regional economy,’ SJM added.

The gaming operator also indicated that local authorities have began the inspection and application process for its future Grand Lisboa Palace integrated resort in Cotai and that the project is still expected to open by the end of 2020.

So far gaming operators MGM China, Sands China and Wynn Macau have also published their first quarter financial reports, with all also reporting considerable decreases in revenue due to the pandemic.