SJM Holdings released its first-quarter results yesterday, providing the first glimpse into the business following the closure of Macao’s satellite casinos at the end of last year.
First-quarter sales fell 21.1 percent to HK$5.9 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) dropping 4.3 percent to HK$917 million. EBITDA margins improved by 2.7 percentage points to 15.5 percent from 12.8 percent, due in part to the business shifting towards a self-managed operation.
Gross gaming revenues of HK$6.1 billion slipped 18.8 percent given the full absence of its satellite operations. This resulted in adjusted market share falling to 9.6 percent from 13.5 percent a year ago.
[See more: Satellite casinos in Macao: what their closure means for the future]
Across its major properties, the Grand Lisboa Palace Resort recorded total revenues of HK$2.1 billion on the back of an 11.7 percent increase in GGR. Rolling volumes rose 26.5 percent due to better contributions in the VIP segment.
Grand Lisboa recorded total revenues of HK$2 billion, with GGR growing 6.7 percent to HK$1.9 billion. Other properties, including Casino Lisboa, Casino L’Arc Macau, and Casino Oceanus at Jai Alai, saw gross gaming revenues jump 83.6 percent to HK$2.4 billion, with management citing an expanded gaming area at Casino Lisboa and contributions from Casino L’Arc Macau.
First-quarter EBITDA was roughly in line with consensus estimates, due in part to the inclusion of L’Arc. Despite the better margin, operating expenses rose quarter-on-quarter, reflecting the inclusion of additional staff, analysts say
