SJM makes financial turnaround by reporting $220 million in Adjusted EBITDA for FY23

Macau-based casino operator SJM Holdings has reported a turnaround in its financial performance, with nearly HKD1.73 billion ($220 million) in adjusted EBITDA for the 12 months ending December last year. This marks a stark reversal from the loss of approximately HKD3.1 billion ($400 million) recorded a year earlier.

The company also disclosed that its losses narrowed to approximately HKD2 billion ($260 million) in 2023, compared to approximately HKD7.8 billion ($1 billion) in 2022. SJM noted a marked improvement in its overall net revenue, which reached HKD21.62 billion ($2.76 billion) for the year, an increase of 223.7 percent year-on-year.

Despite a comparably low base, SJM's net gaming revenue surged by 229 percent to approximately HKD20 billion ($2.6 billion) in 2023. The company held an 11.9 percent share of Macau's total gaming revenue during this period, comprising 14.8 per cent from mass market tables and 3.5 percent from VIPs.

SJM Holdings also revealed that it held approximately HKD4.55 billion ($583 million) in cash, while its debt stood at approximately HKD28.15 billion ($3.62 billion).

Notably, its Cotai property, Grand Lisboa Palace, reported gross revenue of HKD3.67 billion ($470 million), with gaming activity contributing approximately HKD2.69 billion ($345 million). Gross revenue saw a substantial increase from about HKD346 million ($44.3 million) in 2022.

Furthermore, SJM's adjusted EBITDA loss at Grand Lisboa Palace narrowed to HKD317 million ($40.7 million) from approximately HKD969 million ($124 million) the previous year. The property also saw its occupancy rate rise to 82.6 percent, with an average room rate of HKD1,322 ($170), up 44.3 percent.

SJM's other property on the Macau peninsula, Grand Lisboa, generated approximately HKD5.75 billion ($737 million) in gross revenue, with over 94 percent coming from gaming operations.

Grand Lisboa Palace 

The property's adjusted EBITDA returned to positive territory at approximately HKD1.33 billion ($171 million), compared to a loss of HKD758 million ($97.4 million) the year before. Additionally, the property boasted an occupancy rate of 93 percent, with a room rate of about $144 (HKD1,121), up 76.8 percent.

SJM secured a new term loan of HKD9 billion ($1.16 billion) and $1.29 billion (HKD10 billion) in revolving credit in June 2022. As of the end of last year, approximately HKD3.3 billion ($424 million) of the revolving credit facility remained unused.

Looking ahead, Daisy Ho, chair of SJM Holdings Limited and managing director of SJM Resorts, expressed optimism about the company's prospects, particularly in light of Macau's continued recovery. She highlighted the positive trends observed in early 2024, including increased visitation, which bodes well for SJM's operations moving forward.

“SJM Holdings’ results for 2023 show substantial recovery in gaming and non-gaming revenues from the pandemic years,” she said. According to the company, data for early 2024 indicates that recovery is set to continue, reaching back "to levels comparable to 2019, the last pre-pandemic year."