After a challenging period, SJM Holdings Ltd has reported a slight profit for the fiscal year 2024, marking a significant recovery from a HKD2.01 billion loss in 2023. The Macau-based casino operator attributed this turnaround to a robust performance across its major properties, including the Grand Lisboa and the Grand Lisboa Palace in the Cotai district.

Financial highlights and operational success:

In 2024, SJM Holdings saw its group net gaming revenue climb to nearly HKD26.85 billion, a 33.8% increase from the previous year. This revenue boost was supported by a 22.9% rise in income from hotel, catering, retail, leasing, and related services, which collectively brought in over HKD1.92 billion. The company’s full-year adjusted EBITDA also surged by 117.9% to HKD3.76 billion, with the adjusted EBITDA margin improving significantly from 8.0% in 2023 to 13.1%.

Despite these positive figures, the board of SJM Holdings has chosen not to recommend any final dividend payment for the year ending December 31, 2024.

SJM’s recovery has been notably influenced by its strategic operations in Macau’s gaming sector. The Grand Lisboa Palace, a key player in Cotai, reported a gross revenue of HKD6.58 billion for the year, with gaming revenue contributing nearly HKD5.24 billion. This property alone saw a dramatic turnaround with its adjusted property EBITDA moving from a negative HKD317 million in 2023 to HKD499 million in 2024.

Similarly, the Grand Lisboa on the Macau peninsula also experienced substantial growth, with its gross revenue reaching nearly HKD7.84 billion and adjusted property EBITDA increasing to HKD2.09 billion from HKD1.33 billion a year earlier.

Market position and future outlook:

Daisy Ho Chiu Fung, Chairman of SJM Holdings, expressed satisfaction with the year’s results, highlighting the company’s disciplined execution and commitment to sustainable growth. According to GGRAsia, “We are pleased to report a solid year for SJM, marking a significant inflection point as we return to profitability for the first time since the pandemic.”

As of the end of 2024, SJM Holdings claimed a 13.1% share of Macau’s gross gaming revenue, including a 15.8% share of the mass-market table games segment and 5.1% in VIP gaming. These figures represent a strategic enhancement of the company’s market presence, particularly in light of the upcoming regulatory changes affecting satellite casinos in Macau.

The Macau gaming landscape is undergoing significant shifts, particularly with the three-year grace period for satellite venues ending in 2025. These venues must decide to either transition to a management fee model or integrate more closely with the gaming concessionaire that provides their license. SJM Holdings is actively preparing for these changes, aiming to maintain its competitive edge and operational efficiency.

Looking ahead, SJM is also focusing on expanding its non-gaming offerings. The Grand Lisboa Palace Resort Macau plans to enhance its MICE capabilities with new event spaces like the Garden House and Grand Hall, aiming to increase the resort’s overall hosting capacity significantly. Meanwhile, the Grand Lisboa is set to undergo a comprehensive upgrade program that will include a full renovation of all rooms and an inventory expansion to attract high-value travelers.