Key points:
- The report details strong growth in net gaming revenue, adjusted EBITDA and profitability in Q3 2024 and the first nine months of 2024
-The group’s Q3 2024 net gaming revenue increased by 29.2% year-on-year to HK$7bn
- Adjusted EBITDA for Q3 2024 rose 83.2%, with a margin improvement from 9.6% to 13.8%
- Grand Lisboa Palace and Grand Lisboa properties reported strong revenue and profitability growth
SJM Holdings has announced its unaudited key performance indicators for the third quarter and first nine months of 2024.
The results demonstrate a robust recovery in the company's operations, driven by growth across its portfolio of properties.
In the third quarter of 2024, the group's total net revenue increased by 27.8% year-on-year to HK$7.5bn ($964m).
Net gaming revenue, which accounts for the majority of the group's revenue, rose by 29.2% to HK$7bn compared to the same period in 2023. This was primarily attributable to growth in rolling, non-rolling and electronic gaming revenue.
The group's adjusted EBITDA surged by 83.2% to HK$1.04bn in the third quarter, with the adjusted EBITDA margin expanding from 9.6% to 13.8% – an improvement in profitability that reflects the group's cost management and operational efficiency initiatives.
Good to know: The group's flagship properties, Grand Lisboa Palace Resort and Grand Lisboa, were key contributors to the overall performance
For the first nine months of 2024, the group's total net revenue grew by 39.9% year-on-year to HK$21.3bn, while net gaming revenue increased by 41.0% to HK$19.89bn.
Adjusted EBITDA for the period more than doubled, rising by 169.8% to HK$2.78bn, with the adjusted EBITDA margin expanding from 6.7% to 13.0%.
The group's property-specific performance also contributed to the overall growth.
Grand Lisboa Palace Resort reported a 63.9% year-on-year increase in total revenue to HK$1.78bn in the third quarter, driven by strong growth in both gaming and non-gaming revenue.
The property's adjusted property EBITDA turned positive at HK$165m, compared to a loss of HK$27m in the same period last year.
Grand Lisboa also delivered a robust performance, with total revenue increasing by 30.3% to HK$2.02bn in the third quarter.
The property's adjusted property EBITDA rose by 46.1% to HK$545m, reflecting the resilience of its gaming and non-gaming offerings.
Beyond this, the group's other self-promoted casinos, Jai Alai Hotel and Sofitel at Ponte 16, also contributed to the overall results, with total revenue increasing by 16.1% to HK$1.46bn in the third quarter.
The satellite casinos segment showed a strong recovery too, with casino revenue growing by 19.7% year-on-year.
Despite the positive operational performance, the group faced an unrealised fair value loss of HK$16m in its investment in equity securities during the third quarter.
Finally, the group's capital expenditure during the quarter was HK$166m, primarily for furniture, fixtures, equipment and leasehold improvements.
