SJM loses crown after revenue decline: Bloomberg

Thursday 20th of August 2015

SJM Holdings lost its crown as Macau's biggest casino operator by total revenue in 15H1, having once held a monopoly, said Bloomberg Intelligence.

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). Total group revenue fell 40.1 percent to HK$26.6 billion.

Analysts Tim Craighead and Margaret Huang in a note that the casino operator has been slow to embrace the integrated resort concept that Sands China, Melco Crown and Galaxy have aggressively pursued.

“More of the same is likely as competitors open five resorts this year or next on the Cotai Strip, which has delivered much of Macau's incremental gambling and non-gaming revenue increase in recent years. SJM will probably be the last to open there.”

SJM has a unique business model among Macau casinos, the analysts say. About 50 percent of its revenue comes from 15 properties operated by partners, with business at these venues remaining remained static for four years.

“SJM's flagship is the Grand Lisboa, which generates almost 40% of company sales. It competes directly with resorts on Macau's Peninsula operated by Wynn, MGM and Galaxy.”

“Multi-property portfolios and Cotai Strip exposure will determine leadership among Macau's casino companies.”

Earnings & Filings Bloomberg 15H1 SJM Holdings Revenue