Macao casino operator SJM Holdings Limited earned a profit of HK$9 million (US$1.16 million) in the third quarter of this year, down by 91 percent when compared to the HK$101 million (US$12.99 million) recorded during the same period last year.
In an unaudited third quarter filing released yesterday, SJM reported decrease across major indicators. These included total net revenue, which hit HK$7.034 billion (US$905.27 million), a drop of 6.2 percent year-on-year.
Meanwhile, gross gaming revenue (GGR) fell 4.7 percent, down to a total of HK$7.142 billion (US$919.15 million).
Adjusted earnings before accounting for interest, taxes, depreciation and amortization (EBITDA) reached HK$881 million (US$113.38 million, a 15 percent decrease), while the adjusted EBITDA margin was listed as 12.5 percent – down 1.3 points against the 13.8 percent recorded in the third quarter of 2024.
In addition, SJM’s total market share shrunk by 2.1 percent between the third quarter of 2024 and 2025, from 13.9 percent to 11.8 percent. The firm explained that this reduction was due to the drop in its satellite casino market share, which fell “from 5.1 percent to 3.9 percent.”
In accordance with earlier legislative changes made to Macao’s gaming sector, SJM, along with other gaming concessionaires, have until the end of this year to wind down the operation of their satellite casinos.
In July, SJM terminated operation of the Grandview Casino. Similarly, the Grand Emperor Casino shut down for good in October, while the Legend Palace Casino permanently closed down yesterday.
As for SJM’s average hotel occupancy rate, it too experienced a decline, dipping 3.3 percent from 97.7 percent to 94.4 percent.
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Commenting on the latest results, SJM’s chairperson and executive director, Daisy Ho, said her company had experienced “significant headwinds in the third quarter” as a result of the closure of its satellite casinos and the ramping up of competition in the sector.
Ho, however, expressed optimism for the year ahead by pointing out that “behind the inevitable disruptions that accompany this transition period, we have been actively realigning our resources, both people and tables, to strengthen our core operations.”
She expressed confidence over this “new operation framework,” adding that it would allow “SJM to enter 2026 on a stronger footing with a more integrated and resilient platform.”
As for SJM’s individual properties, the Grand Lisboa Palace Resort’s third quarter total revenue grew up 7.4 percent to HK$1.91 billion (US$245.81 million). The firm noted that this surge was due to the casino hotel’s GGR of HK$1.58 billion (US$203.34 million), which represents a year-on-year growth of 11 percent.
By contrast, the Grand Lisboa Macau’s total revenue in the third quarter fell by 0.7 percent year-on-year, hitting HK$2 billion. Its GGR also decreased by 1.8 percent to HK$1.91 billion (US$245.81 million).
Overall, SJM said it had been working to broaden its portfolio during the third quarter. This included the purchasing of former gaming areas at Hotel Lisboa for HK$529 million (US$68.01 million), with the gaming assets from the closed satellite properties set to be transferred to these spaces.
In addition, the firm invested 724 million yuan (US$101.79 million) on office spaces in a commercial property in Hengqin, which it intends to transform into a three-star hotel.
