SJM Q1 beats results, but market share slips

SJM Holdings posted better-than-expected Q1 results, but its market share in Macau continued to slip as the Cotai Strip lures away clients.

Net gaming revenue rose 6.7 percent to HK8.4 billion ($1 billion), while adjusted EBITDA was up 17 percent to $987 million. Net profit attributable to owners of the company gained 25.8 percent to $730 million.

Bernstein Research said the results beat both its own and consensus estimates, largely due to a better business mix and high hold in high margin junket VIP business.

VIP GGR fell 1.1 percent to $4.88 billion, while mass market revenue gained 9.5 percent to $5.74 billion. Slot machine revenue gained 14.6 percent to $294 million.

SJM, once the monopoly holder in Macau, saw its market share slip to 14.7 percent from 16.9 percent in the same period last year. The company will be the last of the six operators to open a resort on the Cotai Strip.

“We still believe SJM will continue to underperform the market until it opens and ramps up its Cotai property,” Bernstein said, adding it doesn’t expect that to happen until late into 2019.

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