SJM Holdings has reported a decline in third-quarter revenue as ongoing satellite casino closures and increased market competition affected performance.
For the three months to September 30, the company posted profit attributable to shareholders of HKD9m, down from HKD101m a year earlier. Adjusted EBITDA fell 15 per cent year-on-year to HKD881m.
“We encountered significant headwinds in the third quarter, driven by the phased cessation of satellite casino operations and intensifying market competition,” said Daisy Ho, chairman and executive director of SJM Holdings and managing director of SJM Resorts. She said the company has been reallocating resources to strengthen core operations.
Group gross gaming revenue declined 4.7 per cent year-on-year to HKD7.142bn. Self-promoted casinos recorded a 0.9 per cent rise to HKD4.794bn, but overall market share fell to 11.8 per cent, down from 13.9 per cent last year, mainly due to reduced satellite contributions.
SJM progressed its restructuring and expansion plans, acquiring former gaming areas at Hotel Lisboa for HKD529m and office properties near Hengqin Port for RMB724m, which will be converted into a three-star hotel. The company said the project addresses room capacity constraints in Macau.
SJM Resorts also confirmed that Casino Casa Real on the Macau Peninsula will close at 11:59 p.m. on 21 November, following the shutdown of Casino Legend Palace on 12 November. Five satellite casinos will remain under SJM’s licence after the closure.
Macau’s Gaming Inspection and Coordination Bureau said it will work with the Labour Affairs Bureau to assist the 285 employees affected by the Casa Real closure.
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SJM Holdings has reported a decline in third-quarter revenue as ongoing satellite casino closures and increased market competition affected performance. For the three months to September 30, the company posted profit attributable to shareholders of HKD9m, down from HKD101m a year earlier. Adjusted EBITDA fell 15 per cent year-on-year to HKD881m. “We encountered significant headwinds…
The post SJM Q3 revenue falls as satellite casino closures continue appeared first on G3 Newswire.