As reported by Inside Asian Gaming, some investment bank analysts have recently expressed doubts about whether SJM’s Cotai integrated resort, Grand Lisboa Palace, will be able to achieve its target of 5% Macau market share in the near-term.
Speaking with media at an event on Tuesday, SJM Managing Director Daisy Ho agreed the property would not achieve its 5% target this year but said the company would do all it can to increase share in the quarters ahead.
“I’m aware that some analysts have said that, but the fact is there was more than a 2% increase in the number of visitors to Lisboa Palace every day [in 1Q24],” Ho said.
“In terms of gaming, we have been striving to increase our share, but after all, this gaming area is a very large venue, so it seems that the increase is not very big compared to the other areas.”
Ho added, “Compared with other nearby gaming companies, Lisboa Palace’s casino is relatively new, so it’s not very fair to compare the ramp-up with other companies. But if you have the opportunity to enter our gaming area, the growth in foot traffic is huge.
“To be honest, we won’t be able to achieve our target market share of 5% this year, but we will try to increase our share.
“We should have new stores for promotion, plus catering and shopping malls, so we hope it can attract new people.”
Investment bank JP Morgan stated in a report on Friday that it’s “not (yet) convinced that GLP can garner its target share of 5% in the coming years,” and has revised its earnings estimates accordingly. Vitaly Umansky of research house Seaport described the ramp-up of GLP as “tepid” at 2.0% market share in Q1.
Ho also provided media with an update on peninsula property Grand Lisboa after informing the market last October that it would undergo a comprehensive renovation.
“Progress is very good, and the project will start this year,” she said Tuesday, explaining that the first phase of upgrade works would focus on food and beverage, while the entire project will take around two years.
Asked about SJM’s adoption of smart gaming table technology, Ho said, “smart gaming tables will be launched in our self-operated casinos by the end of this year.”
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