For H1 2022, SJM Holdings' net gaming revenue declines by 25%

SJM Holdings has reported severe losses and declines in sales in its unaudited consolidated interim results for the first half of the year, which were published today. The overall revenue of the group for the first half of 2022 was HK$4.13 billion (US$525.9 million), which is a year-on-year reduction of 21%.

The net gaming revenue for the first half of 2022 amounted to HK$3.81 billion, representing a drop of 25%.

A substantial drop of 131% was seen in adjusted EBITDA for the quarter, which came in at HK$1.17 billion. The change from the previous year's total of HK$1.46 billion to this year's total of HK$2.75 billion is an 88% swing in the amount of loss that can be attributed to the shareholders of the firm.

The next section of the study presented an analysis of how well SJM's integrated resort, The Grand Lisbon Palace, had performed.

After it first opened its doors in July 2021, The Grand Lisbon Palace recorded a total income of HK$417 million, including HK$231 million in gross gaming revenue and HK$186 million in revenue from other sources.

SJM had HK$2.40 billion in cash, bank balances, short-term bank deposits, and pledged bank deposits as of the 30th of June, 2022. The company also had HK$26.02 billion in debt.

The business then went on to outline the refinancing of its syndicated banking facilities, which included a term loan of HK$9 billion and a revolving credit of HK$10 billion, and was completed on June 20, 2022.

"Working hand in hand with the community, we are doing our utmost to help the Macau Government's efforts to eradicate Covid-19 while at the same time being committed to our devoted team," stated SJM Vice Chairman and CEO Dr. Ambrose So.

"We are looking forward to successfully participating in the tender for additional gaming concessions in Macau later this year, as well as to maintaining our presence in Macau for a good number of years to come,"

The disappointing results come at a time when the gambling industry in Macau is struggling due to closures and limitations connected to Covid, and industry analysts are gloomy about the short-term financial health of the business.