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Revenue rockets 492.9% at SJM Holdings as pandemic recovery continues in Q3

| By Robert Fletcher
SJM Holdings has reported a 492.9% increase in net gaming revenue (NGR) to HK$5.41bn (£556.4m/€638.0m/US$693.5m) in Q3 as it continued to benefit from the removal of pandemic measures in Macau.
Macau March

The figure for the three months to 30 September was significantly higher than $913m at SJM in Q3 last year. Macau only withdrew Covid-19 restrictions in January 2023, removing almost all entry curbs and measures.

Gross gaming revenue (GGR) jumped 502.0% to $5.73bn. This includes $4.90bn from non-rolling activities, a rise of 506.8%, and $499m from electronic games, up 330.2%. A further $335m was attributed to rolling games, an increase of 1,055.2% from last year.

Breaking down performance by property, Grand Lisboa led the way with $1.55bn in GGR, an increase of 1,124%. Casino revenue hit $1.47bn, rooms $44m and food and beverage mall and other $37m.

Elsewhere, Grand Lisboa Palace reported $1.08bn in GGR, up 842.6% from last year. Some $783m of Grand Lisboa Palace revenue came from casino, $159m hotel and $142m food and beverage mall and other.

GGR from other self-promoted casinos, consisting of Jai Alai Hotel and Sofitel at Ponte 16, hit HK$1.26bn, up 296.8%. In addition, SJM’s satellite casinos generated HK$2.30bn in casino revenue in Q3, a rise of 301.6%.

SJM did not offer a full breakdown of finances for Q3, but it did report adjusted EBITDA. This amounted to $566m for the quarter, in contrast to the negative $968m posted last year. Adjusted EBITDA margin stood at 9.6%, compared to last year’s negative 94.2%.

SJM on track for significant full-year growth

Looking to the year-to-date, growth during Q3 helped push NGR in the nine months to 30 September to $14.11bn. This was 198.6% higher than at the same point last year.

GGR was 196.9% higher at $14.91bn. Non-rolling GGR hiked 209.0% to $12.57bn, electronic game GGR jumped 139.1% to $1.28bn and rolling GGR 152.3% to $1.05bn.

Grand Lisboa GGR was 338.0% higher at $3.95bn and Grand Lisboa Palace GGR increased by 372.6% to $2.51bn.

SJM also reported a 250.6% rise in revenue from self-promoted casinos to $3.46bn. Satellite casinos revenue also increased 101.1% to $6.10bn.

In addition, group adjusted EBITDA for the period was 147.9% higher at $1.03bn, with a margin of 6.7%.

Other operators feel benefits of Macau dropping restrictions

SJM is not the only operator to have reported significantly improved results after Macau dropped Covid-19 restrictions.

Last week, Macau’s Studio City Casino revealed that it had returned to operating profit thanks to a surge in gaming and non-gaming segments in Q3. Entertainment and tourism revenues have surged across Macau since the relaxation of Covid-19 related restrictions.

Parent company Melco Resorts & Entertainment also said it had moved closer to turning a net profit in Q3.

It was also revealed that gambling revenue in Macau hit MOP19.50bn in October. This is the highest monthly amount since before the pandemic.

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