SJM sees loss of $182.2m for H1 2020
SJM Holdings, a Macau casino operator, reported a loss of HKD1.41bn ($182.2m) for the first half of this year. This represents a 184% drop compared to the previous year when the group’s profit was HKD1.68bn, reflecting the impact COVID-19 has had on the company's operations.
The group’s GGR fell by 74%, earning the group HKD4.27bn, while adjusted EBITDA dropped from positive HKD2.08bn the previous year to negative HKD984m in 2020. Ambrose So Shu Fai, the group’s vice-chairman and chief executive, said “SJM’s first-half results reflect the severe contraction in travel and tourism caused by the Covid-19 pandemic.”
The group hasn’t published specific financial data, but it’s speculated that in the second quarter, the group lost nearly HKD1bn (based on the data from Q1).
Over the first six months of 2020, the group’s VIP sector suffered the most, with chip sales falling by 85% to HKD37.30bn, and GGR declining by 81% to HKD1.37bn. GGR from VIP as part of the total VIP gaming revenue in Macau fell as well, standing at almost 9% compared to 11% the previous year. GGR in Grand Lisboa casino is down by 81%, earning HKD1.33bn, with hotel’s occupancy staying at 19%, compared to 95% for the first six month in 2019. The group’s other self-promoted casinos also report drops in GGR.
Despite some of the travel restrictions slowly lifting, the group remains skeptical, stating: “Whilst certain travel restrictions are likely to be gradually lifted, and that visitation and spending will respond positively to such lifting, we do not expect a return to our previous level of revenue during any part of 2020.”
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