Gambling operator SJM Holdings Ltd. posted today information about its financial performance during the three-month period ended March 31, 2016. The company is one of the six operators authorized to provide gambling operations in Macau.
During the first quarter of the year, the company and its subsidiaries generated gaming revenue of HK$11 billion, down 22.8% year-on-year. In comparison, the amount of HK$14.3 billion was posted for the same period of the previous year.
Revenue from VIP gaming operations amounted to HK$5.6 billion, down 29.2% year-on-year. Mass market table games generated a total of HK$5.1 billion, down 14.9% as compared to the figure posted for the same period a year ago. Slot machine revenue totaled HK$267 million, down 14.3% year-on-year.
During the period in review, the gambling operator offered an average of 369 VIP gaming tables, 1,298 gaming tables for mass market players, and 2,898 slot machines.
Adjusted EBITDA for the three months ended March 31, 2016 amounted to HK$838 million, representing a decrease of 32.5% as compared to the figure posted in 2015. Adjusted EBITDA margin stood at 7.5% compared to 8.6% in the first quarter of the previous year.
Profit attributable to the operator’s owners decreased 44.1% year-on-year to HK$561 million. The drop was attributed to the gaming revenue decrease the company reported for the three months ended March 31, 2016.
Casino Grand Lisboa generated a total of HK$3.5 billion in gaming revenue over the reported period. Adjusted EBITDA from the venue amounted to HK$426 million. Casino Lisboa and Casino Oceanus at Jai Alai reported gaming revenue of HK$1.7 billion for the first quarter of the year. The two venues generated adjusted EBITDA of HK$155 million. Revenue from third-party promoted casinos totaled HK$5.9 billion. Those contributed adjusted EBITDA of HK$196 million.
Commenting on the posted results, Dr. Ambrose So, CEO of SJM Holdings, said that although the gaming environment in Macau continued to be quite challenging in the first quarter of 2016, there are certain signs of stabilization, especially in the mass market segment.
Mr. So also revealed that considerable progress has been made in the construction of Grand Lisboa Palace, the company’s integrated resort on the Macau Cotai Strip. The venue is expected to be completed and launched towards the end of 2017.
