Full year results 2020

SJM revenue down 77.8% following Macau restrictions in 2020

| By Daniel O'Boyle
Macau casino operator SJM Holdings’ revenue dropped 77.8% to HK$7.51bn (£686.6m/€799.0m/USD$967.9m) amid the disruption around the entire Macau gaming market.

Gaming brought in $7.30bn of SJM’s revenue, down 78.0%.  Gaming revenue in Macau as a whole for 2020 was down 79.3% year-on-year following closures and travel restrictions, though the last restrictions for travellers from mainland China were lifted yesterday.

Breaking this gaming revenue figure down further, non-VIP table games brought in $5.86bn, a 76.7% decline. VIP gaming revenue dropped 85.1% to $2.04bn and slot revenue declined 68.0% to $379.3m. This resulted in gross revenue of $8.28bn, of which $971.0m was removed through bonuses and commission.

Hotel, catering and other revenue also declined rapidly, by 71.3% to $202.5m. 

SJM’s flagship Casino Grand Lisboa venue brought in $2.07bn in revenue for the year, down 84.0%. Other SJM-promoted casinos brought in $1.35bn, down 78.5% and revenue from satellite casinos – which are operated through service agreements between SJM and third party promoters – dropped 84.5% to $4.85bn.

After paying $3.37bn in gaming taxes and levies, down 78.3%, SJM was left with $3.94bn, down 77.6%.

SJM’s operating expenses came to $7.26bn, with the vast majority, at $7.10bn, in general and administrative expenses. It paid an additional $124.7m in marketing expenses, down 98.0%.

This led to a net loss of $3.15bn, compared to a $3.37bn profit in 2019.

After $22.5m in tax, down 56.4%, SJM’s post-tax loss was $3.17bn, after a $3.32bn profit the year before.

The business also incurred a $313.7m loss through the change in fair value of investments, leading to a $3.49bn total comprehensive loss, compared to 2019’s $3.27bn total comprehensive profit.

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