SJM Holdings reports $83.3m loss for Q1 in 2021

SJM Holdings reported a loss of HK$647m ($83.3m) for Q1 2021, compared to a loss of HK$409m recorded for the same period last year.

Net gaming revenue dropped 29% to HK$2.41bn, and total net revenue for the three months fell by 29% to HK$2.47bn.

During the first quarter, the company’s revenue accounted for nearly 12% of Macau’s casino gaming revenue, down from 13% the previous year.

SJM’s EBITDA was negative HK$319m, compared to negative HK$200m for Q1 2020. The group’s VIP GGR for the quarter was HK$485, down 59% from the previous quarter.

“SJM’s results have recently begun to respond to the resumption of leisure travel to Macao,” said vice-chairman and CEO Ambrose So Shu Fai. “And for the rest of 2021, we anticipate a gradual improvement in market conditions.”

SJM’s EBITDA was negative HK$319 million in Q1 2020, compared to negative HK$200 million in Q1 2020. The group’s VIP GGR for the quarter was HK$485, down 59 percent from the previous quarter. GGR from mass-market tables fell by 21% to HK$2.05 billion.

Despite the losses incurred due to the ongoing pandemic, the operator is optimistic about the future. SJM intends to open the Grand Lisboa Palace in Cotai as soon as July.

According to brokerage firm Sanford C. Bernstein, only one of the three hotels in the venue will welcome guests. It will operate at a limited capacity, offering the guests about 300 rooms. The organization also intends to open 304 gaming tables in the venue. However, Macau’s Government still hasn’t given SJM the table allocation.

“We are skeptical this can be accomplished at GLP,” said Bernstein specialists. “Competition on Cotai is very tough, and product offering is very competitive. We do not reckon GLP to get even a fair share on Cotai.”