SJM Holdings Ltd., one of the six gambling operators that have been authorized by the government of Macau to manage casinos on the territory of the city, announced certain key performance indicators for the first quarter of 2015. Gaming revenue of the company decreased 37.3% year-on-year to HK$14.28 billion.
Revenue from VIP players was down 45.4% to HK$7.92 billion. Mass market revenue dropped by 23.9% to HK$6.05 billion. Slot machines posted a 5.6% decrease to HK$311 million.
During the first quarter of 2015, the company offered to its customers about 530 VIP gaming tables compared to 582 for the same period in 2014, 1,209 mass market gaming tables compared to 1,195 in 2014, and 2,793 slot machines compared to 2,971 in 2014.
Revenue at Casino Grand Lisboa amounted to HK$5.2 billion during the reported period. Revenue at other self-promoted casinos, such as Casino Lisboa, Casino Oceanus at Jai Alai, etc., reached HK$1.73 billion. Other satellite casinos generated revenue of HK$7.36 billion.
Adjusted EBITDA amounted to HK$1.24 billion, down 43.3% as compared to what was posted for the same period a year ago. Adjusted EBITDA margin dropped to 8.6% during the first quarter of 2015. In comparison, a 9.5% margin was posted for the three months ended March 31, 2014.
SJM Holdings’ gaming revenue accounted for 22.7% of the overall gaming revenue generated by Macau’s 35 gambling venues during the reported period compared to 23% in 2014.
The casino operator pointed out that the first year of construction of the Lisboa Palace, its first casino resort on the Cotai Strip, was completed. The luxurious property is to be launched sometime in 2017. It will feature three hotels, with Karl Lagerfeld Hotel and Palazzo Versace Macau being among those, as well as a casino floor with as many as 700 gaming tables and 1,00 slot machines. The construction of the resort was initially estimated at HK$30 billion.
Dr. Ambrose So, Chief Executive Officer of SJM Holdings Ltd., commented on the company’s financial performance as being the result from the challenging economic environment in Macau. He also pointed out that the casino operator optimistic about the future of the city’s gambling industry. Furthermore, the company is determined to maintain its leadership position on the peninsula and to proceed with the construction of its integrated resort on the Cotai Strip.
