Macau casino concessionaire SJM Holdings has reported a loss attributable to owners of the company of HK$2.76 billion (US$352 million) for the six months to 30 June 2022 – 88.1% higher than the HK$1.47 billion (US$187 million) loss during the same period in 2021.
It also meant loss for the June quarter was HK$1.48 billion (US$189 million), representing a 15.6% increase over 1Q22 as Macau’s COVID-19 situation continues to worsen.
SJM’s H1 results included a 20.9% year-on-year decline in net revenue to HK$4.13 billion (US$526 million) and 26.1% decline in gross gaming revenue to HK$4.07 billion (US$518 million), while Adjusted EBITDA loss more than doubled from HK$510 million (US$65 million) to HK$1.18 billion (US$150 million).
Compared with the March quarter, GGR fell 39.8% to HK1.53 billion (US$195 million).
By property, peninsula IR Grand Lisboa reported GGR of HK$705 million (US$90 million) for the first six months of the year, down 41.1% year-on-year but still substantially higher than SJM’s new Cotai integrated resort, Grand Lisboa Palace, where GGR reached just HK$231 million (US$29 million).
The company’s self-promoted casinos suffered a 5.8% year-on-year decline in GGR to HK$674 million (US$86 million) while satellite casinos saw a 29.9% decline to HK$2.46 billion (US$313 million).
With much being made of SJM’s financial status in recent months, the company said it currently boasts bank balances and cash amounting to HK$2.26 billion (US$288 million). Liabilities include outstanding bank loans totalling HK$15.3 billion (US$1.95 billion) plus senior notes and convertible bonds of HK$10.7 billion (US$1.36 billion). However, it said only 1% of those liabilities are due within the next year and another 3% within two years with 58% due inside five years.
Assessing Macau’s short-term prospects, SJM said, “We expect that gross gaming revenues in Macau, as well as hotel, restaurant and other non-gaming activities that depend on tourism, will continue to be negatively impacted by COVID-19 for an indefinite period in the future.
“As certain travel restrictions are likely to be gradually lifted, given the increasing level of vaccination throughout the region, we are cautiously optimistic that visitation and spending will respond positively. However, we do not expect a return to our pre-pandemic level of revenue during 2022.
“Even after travel restrictions are lifted, moreover, it is not possible to predict whether there will be lingering economic effects and health concerns caused by COVID-19 that will affect our business for a longer period.”
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