Macau concessionaire SJM Holdings Ltd fell to a loss of HK$409 million (US$52.8 million) in the three months to 31 March 2020, with the impact of COVID-19 resulting in a 62.2% decline in gross gaming revenue and 118.6% fall in Adjusted EBITDA.
With the group’s 22 Macau casinos having been closed for 15 days in February and subsequently impacted by tightened border restrictions, particularly between the Macau SAR and Guangdong Province, GGR for the quarter fell from HK$10.42 billion to HK$3.94 billion (US$508.2 million), with Adjusted EBITDA declining from HK$1.08 billion in 1Q19 to a loss of HK$200 million (a loss of US$25.8 million).
Profit attributable to owners of the company fell to a loss of HK$409 million from profit of HK$850 million (US$109.6 million) in the first quarter of 2019.
The VIP segment felt the greatest impact of the COVID decline, with GGR down 69.6% to HK$1.20 billion (US$154.8 million), while mass table GGR fell 57.9% to HK$2.61 billion (US$336.7 million) and slot GGR by 51.6% to HK$141 million (US$18.2 million).
At flagship property Grand Lisboa, GGR was down 65.6% to HK$3.52 billion (US$454.0 million) with Adjusted EBITDA falling to a loss of HK$16 million (negative US$2.1 million). The company’s self-promoted casinos – Casino Lisboa, Casino Oceanus at Jai Alai and Casino Taipa – produced GGR of HK$629 million (US$81.1 million) and EBITDA loss of HK$99 million (US$12.8 million) while satellite casinos produced HK$2.11 billion (US$272.2 million) in GGR and an EBITDA loss of HK$5 million (US$645,000).
The company said its share in Macau casino revenue for the quarter fell from 14.1% in 1Q19 to 13.3%.
“SJM’s first quarter results reflect the severe contraction in travel and tourism caused by the COVID-19 pandemic,” said SJM’s Vice Chairman and Chief Executive Officer, Dr Ambrose So.
“We are optimistic, however, about the potential for our market to begin recovering later this year, particularly given the successful policies of the Macau and Central Government authorities in controlling the outbreak.
“When the market resumes its growth, SJM of course will be a major contributor, and our participation will be enhanced by our exciting new resort, the Grand Lisboa Palace.”
SJM reiterated its expectation that Grand Lisboa Palace will open by late 2020.