The acceleration of the Macau gaming industry seems to be compensating for the lows experienced during the pandemic. However, the past closures of gambling properties still impact SJM Holdings as the company reported a loss of around US$52.5 million for the third quarter of 2023 despite the gross gaming revenues remaining flat for another quarter at US$730 million.
$188 Million Third Quarter Revenue Level
As reported by Inside Asian Gaming, the loss is mainly attributed to the parent as the company’s revenues increased more than five times when compared to the Q3 2022 levels. Grand Lisboa Palace, the SJM resort located in Cotai, propelled the group’s recovery generating gross gaming revenue of around US$188 million in the quarter. The peninsula integrated resort Grand Lisboa reportedly contributed to the figure with US$100 million to stand for almost half of the revenues generated by the group’s Cotai property in Q3 2023.
The source reports that Grand Lisboa Palace ended the quarter with an Adjusted Property EBITDA loss of US$3.5 million which was more than eight times lower than the loss of US$29 million experienced in Q3 2022. In addition, the figure represents a 44% of the US$7.9 million loss sustained in the preceding quarter of 2023.
Almost Five Times Higher Revenue Figure:
Over the same period, IR Grand Lisboa recorded Adjusted Property EBITDA of US$47.8 million against the US$28.6 million EBITDA loss seen in Q3 2022. Also, the resort’s EBITDA is around 16 percent higher than the US$40.1 million level reached in Q2 2023, according to Inside Asian Gaming. The group’s Adjusted EBITDA reportedly also improved 195 % in comparison with the same period of 2022 to hit US$72.5 million. SJM total net revenues reportedly bounced by 471% year-on-year to settle at the US$752 million level.
These figures testify about the complete recovery of the SJM operations in Macau. The losses from 2022 are still reflected in the overall group figures but the revenues across all SJM Macau properties are repeatedly boosted several times over the prior year’s levels. For this reason, one may expect that all the pandemic-induced losses will be completely offset by the booming operations in the forthcoming period.
Commenting on the group’s financial result in Q3 2023, SJM Chairman Daisy Ho reportedly said: “SJM Holdings’ results in the third quarter of 2023 show continued growth in Adjusted EBITDA and steady progress in the ramp-up of Grand Lisboa Palace. In addition, during the quarter, we continued our active support of the economic diversification of Macau through our investment and sponsorship of cultural, educational, gastronomic and sports activities.”