SJM HK$3 billion down in 2020
Macao’s oldest gaming operator takes a massive hit, but remains optimistic and aims to open Grand Lisboa Palace by mid-year.
SJM Holdings, Macao’s oldest casino operation, plunged HK$3.03 billion into the red last year.
The huge loss compares with SJM’s reported profit of HK$3.2 billion in 2019.
The Macau Post Daily reported that SJM, whose predecessor STDM was founded by legendary casino mogul Stanley Ho Hung Sun six decades ago, announced its 2020 annual results in a statement to the Hong Kong Stock Exchange.
Net gaming revenue fell by 78 per cent to HK$7.3 billion. Hotel, catering, retail and other income dropped by 65.8 per cent to HK$359 million, accounting for 4.7 per cent of the company’s total income in 2020.
Adjusted EBITDA decreased by 149.6 per cent to HK$2.09 billion.
SJM admitted it was “severely impacted by the Covid-19 outbreak” last year.
SJM had a 14.1 per cent share of Macao’s gross gaming revenue last year, including 19.7 per cent of mass-market table gaming revenue and 8 per cent of VIP gaming revenue.
The Grand Lisboa Hotel’s occupancy rate declined by 76 per cent to 17.9 per cent for the full year, while its average room rate decreased by 2.9 per cent to HK$1,465.
SJM has maintained its strong balance sheet, with cash, bank balances, short-term and pledged bank deposits totalling HK$6.2 billion at the end of last year.
SJM’s vice chairman and CEO Ambrose So Shu Fai noted that “although SJM’s results for the full year 2020 reflect the severe reduction in travel and tourism caused by the pandemic, we are encouraged to see the beginnings of recovery starting in the fourth quarter of last year.” SJM is planning to open the much delayed Grand Lisboa Palace in Cotai before the end of June.
At the end of last year, SJM owned 22 of Macao’s 41 casinos, according to the Gaming Inspection and Coordination Bureau (DICJ) website although the operations of four SJM casinos were suspended at that time.