Net gaming revenue for the three-month period fell from HK$290m to HK$116m, which resulted in a EBITDA loss of $123m. This compared to an EBITDA loss of $59m the previous year.
While revenue has fallen and losses have risen in 2022 compared to the previous year, the 2021 results were themselves dramatically below the pre-pandemic trend. SJM Holdings recorded $1.03bn in revenue in the three-month period ended 30 September 2019, the last year unaffected by the pandemic.
The more than 88% fall in revenue is principally the result of the continuing disruptions on the land-based gaming trade in Macau, where the majority of SJM’s operations are concentrated. Macau gaming revenue in September was 50% below 2021 levels, and well below the 2019 total.
The special administrative region had been more than three months without a recorded case of Covid-19 until Sunday when an outbreak was reported at the MGM Cotai casino, which may lead to further restrictions that will impact revenue.
Amid the continuing anti-viral measures, visa rules are set to be relaxed from Tuesday in a boost to the sector by allowing both group and e-visas.
SJM has $578m cash on hand in the form of cash, bank balances and short-term bank deposits compared to $3.41bn in debt.
At the business’ flagship Grand Lisboa casino, in the three months ending 30 September SJM recorded $14.7m in revenue compared to $16.3m the previous year. This resulted in a EBITDA of $-28.9m compared to $-22.4m in 2021.
Revenue from VIPs dropped 100.2% from $30.7m to $-64,000. Mass market revenues fell 71% and slots declined by 77%.