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SJM gaming revenue down 40.3 percent in first 6 months

SJM Holdings announced for the first six months of the year ending June 30, the company’s gaming revenue decreased 40.3 percent to HK$26.3 billion ($3.3 billion), with its results mostly in line with expectations. 

Adjusted earnings before interest, taxes, depreciation and amortization, and profit attributable to the owners of the company decreased 49.1 percent and 54.1 percent to approximately HK$2.3 billion and HK$1.8 billion, respectively, from the prior year period.

Mass market table gaming revenue decreased 26.8 percent to HK$11.5 billion and VIP revenue showed a decrease of 48.7 percent to HK$14.2 billion during this period compared to last year’s.  

SJM had a 22.3 percent share of Macau’s gaming revenue, including 25.5 percent of mass market table gaming revenue and 21.2 percent of VIP gaming revenue.

The group’s flagship Casino Grand Lisboa saw a decrease in revenue and adjusted Property EBITDA of 43.5 percent and 49.6 percent to HK$9.2 billion and $HK1.2 billion, respectively.

The occupancy rate of Hotel Grand Lisboa decreased by 15.2 percent to 80.1 percent. 

“Casino Grand Lisboa received over 5.3 million visitors during the Reporting Period, an average of over 29,000 visitors per day compared with approximately 6.9 million visitors during the first half of 2014, or over 38,000 per day.”

The filing said that construction work on the Lisboa Palace, the integrated resort on Cotai, continued to make good progress in the first half of 2015. 

“Foundation work was essentially completed by the first quarter of 2015, so that construction on the superstructure and basement levels is now well underway, and the project is on track for opening in 2017.”

Bernstein Research said the results were in line with its expectations.


"In the near-term, we believe SJM will face continued margin pressure as the low-hanging fruit (in terms of cost control) has most likely been picked. The company is more gaming-focused and has less room to control labor cost compared to its competitors," Bernstein analysts said in a note. 


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