SJM Resorts losses increase 82.2%

SJM Resorts has reported its 2022 losses jumped to HK$7.79bn (US$993m) in 2022, a rise of 82.2 per cent year-on-year.

A major drop in VIP business and a slowdown in mass, as well as continued costs and coronavirus restrictions in Macau, accounted for the results.

SJM’s negative EBITDA increased to HK$3.09bn (US$394.27m) – a 95.8 per cent climb – while net gaming revenue also fell over a third to HK$6.09bn (US$776.05m).

The group’s VIP segment saw the strong impacts of Macau’s zero-Covid policy, as well as the government’s move to shift operators away from junkets – resulting in a 64.2 per cent loss in the sector’s revenue to HK$486m (US$61.91m).

The mass market saw a similar downturn, but less accentuated – down 34.5 per cent to HKD5.53 billion ($707.39m) – despite the group stating it had a 19.8 per cent share of Macau’s mass market table gross gaming revenue.

However, SJM expressed optimism about 2023, as its new 10-year gaming concession came into effect, with chairman Daisy Ho noting “unwavering confidence in the future of Macau.”

SJM has pledged to invest MOP14.03bn (US$1.73bn) over the 10-year period, with MOP12bn (US$1.49bn) going into non-gaming and “expanding international tourism.”

Source: Asia Gaming Brief