BRIEF: SJM returns to the black on Macao gaming rebound

Casino operator SJM Holdings Ltd. (0880.HK) announced on Tuesday it returned to the black last year, ending four consecutive annual losses, as Macao’s gaming market rebounded with the end of the pandemic. The company reported a small profit of HK$3.2 million ($412,000) last year, compared with a loss of HK$2.01 billion in 2023.

SJM reported annual net gaming revenue of HK$26.8 billion, up 33.8% year-on-year, while revenue from its hotels, catering, retail and leasing business rose 20.4% to HK$2.19 billion. SJM controlled 13.1% of Macau’s gaming market last year, based on its gross gaming revenue, including 15.8% of mass market table gross gaming revenue and 5.1% of VIP gross gaming revenue.

The company said its Grand Lisboa property is set to receive a comprehensive upgrade. It is also actively planning to expand its business in the Greater Bay Area of South China’s Guangdong province, including its acquisition of selected office properties in the Macao-adjacent Hengqin area, with plans to repurpose them into a three-star hotel.

Shares of SJM opened up 1.2% at HK$2.48 on Wednesday, but later changed course and were down by a similar amount in afternoon trade. The shares are down nearly 26% from their high over the past six months.

By Lau Chi Hang

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