Macau casino operator SJM Holdings reported huge losses of more than 50% year-on-year in the first half of 2015. The profit the company made in the first six months, up to 30th of June, was around HKD1.79 billion ($230.9 million), while last year that amount was significantly higher HKD3.90 billion. The bad situation in Macau and the loss of VIP clientele have been devastating for casino operators. In May this year Macau gambling companies revealed massive losses in the first quarter of 2015. This trend of falling profit doesn’t seem to stop and now the reports are even more troubling.
SJM Holdings is one of the leading casino operators in the once irreplaceable gambling destination Macau. After the results were made public, the company’s board authorised an interim dividend of HKD0.10 per ordinary share for the reporting period. The dividend is expected to be paid on 16th of September, 2015, to shareholders registered as of 4th of September. Last year the price paid per ordinary share was HKD0.22.
The group witnessed huge revenue fall of 40.3% in the first six months of 2015 to approximately HKD26.32 billion. Last year’s year-on-year revenue for the same period was much higher HKD44.11 billion. This resulted in slip of EBITDA and attributable profit as well; these two noted a fall of 49.6% and 53.3% respectively.
The SJM Holdings best established gaming facility Casino Grand Lisboa earned revenue lower for 43.5% during the first half of the year, while its EBITDA fell for 49.6%. The attributable profit of Casino Grand Lisboa dropped for 53.3%. Another thing that showed worse results than the same period last year is the occupancy rate that decreased for 15.2% to 80.1%. Nevertheless, the average daily room rate increased by 2.3% to HKD2,399.
In spite of the bad results in the first half of the year, SJM Holdings said that the company had maintained a strong financial position in these six months. The bank balances, pledged bank deposits and cash of the Group are nearly HKD22.83 billion as of 30th of June.