SJM Holdings Records HK$2.01 Billion Loss in 2023, Narrowed from HK$7.80 Billion in 2022

One of the biggest concessionaires in Macau, SJM Holdings, released a revenue report and it seems things are looking better for the city. Thanks to a significant increase in gaming revenue, in a year ending with December 31, 2023, the loss was HK$2.01 billion, or US$257 million, while in 2022 the loss was HK$7.80 billion, or US$997 million.

Successful year:

In total, the net revenue was HK$21.6 billion (US$2.76 billion) during 2023. It represents an annual growth of 224%. On top of that, gross gaming revenue increased by 229%, and in 2023 it was HK$21.2 billion (US$2.71 billion)

Adjusted EBITDA was HK$1.73 billion (US$221 million), and in 2022 the loss was HK$3.10 billion (US$396 million).

The report for the fourth quarter of 2023 hasn’t been released yet, but the report for the third quarter was published a while ago. Based on this report, the results for Q4 could be calculated, and according to it, the GGR was around HK$6.3 billion (US$805 million) during the last quarter, which sequentially increased by up to 10%.

Adjusted EBITDA in Q4 was about HK$700 million (US$89.5 million), which is an increase of 24%.

SJM reported that they had 11.9% of shares of the gross gaming revenue the city earned in 2023. In this count, mass market table GGR of 14.8% was included, as well as 3.5% of VIP GGR.

Casinos’ revenue:

But not everything works great when it comes to SJM Holdings’ properties. The company’s integrated resort located in Cotai, Grand Lisboa Palace, has an Adjusted Property EBITDA of HK$317 million, or US$40.5 million. However, the GGR increased by 678% annually, and in 2023 it was HK$2.69 billion (US$344 million).

Grand Lisboa had a GGR of HK$5.44 billion (US$695 million) during the last year, which represents an increase of 410% compared to the previous year. Of that amount, non-rolling table games earned HK$4.46 billion (US$570 million).

Adjusted Property EBITDA was HK$1.33 billion (US$170 million). In 2022 the loss was HK$758 million (US$96.9 million).

The other two of SJM’s casinos, Jai Alai and Ponte 16 achieved a GGR of HK$4.43 billion (US$566 million). Adjusted Property EBITDA was HK$1.26 billion (US$161 billion).

The company’s nine satellite casinos recorded a GGR of HK$8.65 billion (US$1.11 billion). However, Adjusted Property EBITDA recorded a loss of HK$338 million (US$43.2 million).

As Inside Asian Gaming reports, Daisy Ho, SJM Holdings’ Limited’s Chairman, and SJM Resorts, S.A’s Managing Director, commented: “SJM Holdings’ results for 2023 show substantial recovery in gaming and non-gaming revenues from the pandemic years. In addition, our operations in the fourth quarter show strong sequential growth in Adjusted EBITDA as well as steady progress in the ramp-up of Grand Lisboa Palace.”