SJM Holdings reported lower-than-expected EBITDA in the July-September 2019 period as VIP gross gambling revenue tumbled 43% in the quarter.
The company reported net gaming revenue fell 3.2% to HK$8 billion (about US$1 billion), while EBITDA was up 3.4% at HK$950 million (about US$124 million). That figure is about 3% below consensus estimates. VIP GGR was down 43% at HK$2.9 billion (about US$377 million), while mass GGR gained 12% to HK$6.3 billion (about US$819 million).
“In spite of challenges in the global economy, the revenues and earnings from our mass market gaming business have more than compensated for the uncertainties which are affecting VIP gaming in Macau,” said Vice-Chairman and CEO Ambrose So. “At the same time, we are completing construction of our Grand Lisboa Palace on Cotai, on which government inspection is due to begin shortly.”
Analysts at Bernstein Research said the company continues to suffer from a lack of presence on Cotai. However, its margins have improved due to a better mix of VIP and mass gaming.
The construction of the Lisboa Palace is nearing completion and the actual opening date will depend on the timing of pre-opening checks by the government.
The company’s overall share of Macau’s GGR was about 13.8% in the quarter, with VIP GGR at 11% and mass at 15.6%. That’s down from a share of 15.3% of the market in the same period last year. (AGB)