FinancialLegal & RegulatoryIndustry

Asia round-up: SJM losses widen, MGM China Q1 revenue down & more

SJM Holdings net loss doubles in Q1 2022 report  

Asia News Round Up MACAU Web Image

SJM Holdings has doubled its losses for Q1 to HK$1.3bn ($163.4m), losses which stood at HK$647m during the same period last year.  

The operator has also posted wider falls in adjusted EBITDA in Q1 2022, at -HK$474m, down on last year’s adjusted EBITDA of -HK$319m.  

However, net gaming revenue was only down HK$60m at HK$2.35bn, a small loss year-on-year compared to the company's losses in other areas.  

SJM’s recently opened Grand Lisboa Palace posted gross revenue of HK$271m this quarter, which included GGR of HK$516m and non-gaming revenue of HK$115m. 

The Grand Lisboa Palace has been open since 30 July 2021 and is yet to sustain enough growth to propel itself out of negative adjusted Property EBITDA of –HK$216m. This can be explained, in part, by pre-opening expenses of HK$132m; costs that were incurred during the Covid-19 pandemic.  

Overall, SJM’s total debt stood at HK$228.11bn as of 31 March 2022. The operator has HK$1.75bn available in cash, bank balances, short-term bank deposits and pledged bank deposits.  

On 28 February 2022, SJM extended the maturity of its syndicated banking facilities by a year. It originally consisted of a HK$15bn loan and revolving credit of HK$10bn. On the date that SJM made the extension, HK$13.3bn of debt was outstanding. SJM has noted its plan to complete the refinancing of these facilities within the coming quarter.  

MGM China revenue down 25% year-on-year  

MGM China has posted gross gaming revenue (GGR) of MOP17.8bn ($220.2m) for the first quarter of 2022, down 25% year-on-year. 

Its daily GGR for Q1 2022 is a mere 35% of daily figures from Q4 2019, despite the fact revenue totalled HK$2.1bn this quarter, and adjusted EBITDA was at HK$84m. 

Understandably, MGM China cites the continuing impact of the Covid-19 pandemic as having a detrimental effect on financial recovery. Despite low returns from what was once the powerhouse of the land-based casino industry, the operator notes positive visitation figures over the Chinese New Year (26% higher year-on-year during the six-day holiday).

MGM China primarily operates out of MGM Macau and MGM Cotai, and both saw hotel occupancy rates rise significantly over the holiday period, 93% and 73% respectively.  

“We look forward to further promoting the long-term development of Macau's gaming industry and supporting the Government's tourism and diversification goals for the region” Kenneth Feng, President and CFO of MGM China

MGM Macau recorded total revenue of HK$1.2bn in Q1 2022 and an adjusted EBITDA of HK$153m. The casino has held the highest mass table win since May 2021.  

The operator’s Cotai outlet, MGM Cotai, recorded revenue of HK$914m for Q1 2022 and a negative EBITDA of HK$108m; its hotel occupancy was only at 39% for the period.  

On the latest results, MGM China’s President and Strategic CFO, Kenneth Feng, said: “We will continue to work with the Government on retendering as Macau is an important part of our future. We look forward to further promoting the long-term development of Macau's gaming industry and supporting the Government's tourism and diversification goals for the region. 

“The group will maintain focus on understanding and addressing the needs of our customers. We strive for ongoing improvements over our gaming floors, product offering and services. We believe that once demand returns, we are well-positioned for growth, particularly in our premium mass and mass segments." 

IPI casino licence revocation decision postponed to 24 May 

Imperial Pacific International’s (IPI) Saipan casino has seen a hearing on whether or not to revoke its licence pushed back until 24 May.  

IPI had initially been due to appear before the Commonwealth Casino Commission on 3 April; it will now be granted an additional three weeks to continue preparing a defence.  

The operator ran into legal issues when the finalisation of its casino construction became riddled with numerous delays and a string of lawsuits.

The company’s assets were initially put on auction in October 2021, and it was only a last-minute cancellation of the auction that saved IPI, which managed to find $2.45m in funding to secure the future of the business.  

Missed a big gambling industry story in Asia? Don't worry, Gambling Insider has you covered with our Asia round-up. 

Premium+ Connections
Premium Connections
Executive Profiles
MGM Resorts Japan
Hann Casino Resort
Bloomberry Resorts Corporation
Sightline Payments

Global Gaming Awards Asia: What to expect in 2023

Gambling Insider looks ahead to the Global Gaming Awards Asi...

The power of the rebrand

With the help of industry experts, Gambling Insider Editor T...

Evolution Europe CEO Gionata La Torre: The Italian job

Evolution Group’s new CEO Europe, sits down with Gambling...

Big Question: How can slots innovate from here?

Simon Hammon, CEO of Relax Gaming, Erkki Nikunen, Partner &...

Read Magazine