Hong Kong-listed Macau gaming operator SJM Holdings Limited said in a statement Tuesday that its first-half net profit rose 56.8 percent year on year to HK$1.49 billion (US$ 186 million)
Total Group net revenue increased 9.7 percent to HK$17.19 billion (US$ 2.15 billion). Net gaming revenue rose 9.6 percent to HK$16.84 billion (US$ 2.1 billion) , accounting for 97.9 percent of the total Group net revenue between January and June.
The figures refer to the unaudited consolidated interim results of the company and its subsidiaries, collectively referred to as the Group.
Adjusted EBITDA grew 29.9 percent to HK$1.95 billion.The company’s interim dividend per ordinary share rose 60 percent to HK$8 cents.According to the statement, SJM had a 15.1 percent share of Macau’s gaming revenue in the first half of the year – a share of 20.2 percent of the sector’s mass market table gross gaming revenue and 12.2 percent of the VIP gross gaming revenue.
The statement said that the Group maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$21.91 billion as at June 30.
According to the statement, the Group is striving for construction of the Grand Lisboa Palace integrated resort in Cotai to be completed by the end of this year “and to seek the relevant licences to begin operation as soon as possible thereafter.”
The statement quotes SJM Holdings Limited Vice-Chairman and CEO Ambrose So Shu Fai as saying that he was “pleased” with the results and the fact that construction work on the Grand Lisboa Palace “continued without interruption” in the first six months of the year.
Mass gaming revenue grew 13.3% year-on-year for the period, compared with a slight 1.4% increase in VIP, however the company’s Macau gaming market share continued to fall, down from 16.7% in 1H17 to 15.1% including 20.2% of mass share and 12.2% of VIP.
Nevertheless, SJM saw strong improvement in 2Q18 where gross gaming revenue reached HK$11.1 billion. Mass revenue grew 20% in the second quarter to HK$5.7 billion with VIP up around 4% to HK$5.1 billion.
Adjusted EBITDA for the six months to 30 June 2018 grew 29.9% to just under HK$2 billion with profit up 56.8% to HK$1.5 billion.
SJM’s flagship property Grand Lisboa saw GGR increase 8.1% to HK$7.9 billion and EBITDA grow 29.0% to HK$999 million, with occupancy up 3% year-on-year to 96.3%.
Revenue at the company’s other self-promoted casinos – Casino Lisboa, Casino Oceanus, Jai Alai and Casino Taipa – declined 1.5% to just over HK$3 billion while revenue derived from its 16 satellite casinos grew 10.0% to HK$11 billion.
In its filing to the Hong Kong Stock Exchange, SJM said it is aiming to complete construction of Grand Lisboa Palace by the end of this year in order to open for business in the second half of 2019.