SJM posts marginal profits, has Cotai to look forward to

    SJM posted a 4.7 percent increase in revenue of HK$44.4b and a marginal profit increase of 1.9 percent at HK$3.9b for the first half 2014 in a filing to the Hong stock exchange.

    UBS analysts described SJM’s disclosure “a decent result in a season of misses.”

    Gross gaming venue at SJM properties was up 4.7 percent with mass market table gaming revenue up by 29.1 percent. VIP gaming revenue took a 5.1 percent dip during the first half of 2014 year on year. Slot machine revenue also decreased, by 8.0 percent. Gaming concessionaire Sociedade de Jogos de Macau announced having maintained the lead in market share of the Macau casino gaming market with 23.5 of the gross gaming revenue, 24.6 percent of the mass market and 23.9 percent of VIP gaming revenue.

    VIP gaming operations accounted for 62.8 percent of SJM’s total gaming revenue down from 69.4 percent for the corresponding period last year. As at 30 June 2014, SJM had 564 VIP gaming tables in operation with 36 VIP promoters. The VIP/ mass shift proved beneficial to margins.

    Flagship Casino Grand Lisboa showed improved performance, up 5 percent, increased revenue, up 5.7 percent, and Adjusted Property EBITDA and attributable profit also up by 2.2 percent, compared to the year-earlier period. The company posted higher margins for self-owned properties, UBS reported.

    SJM added that works on construction and interior design of Lisboa Palace in Cotai made good progress in the first half of 2014 and the project is on track for opening in 2017. The property will feature 700 gaming tables and 1,000 slot machines, 2,000 hotel rooms, fine and casual dining, shopping and entertainment facilities.