SJM profit, revenue, EBITDA fell in 17H1

Macau casino operator SJM Holdings posted profit of HK$955 million for the six months ended June 30, 2017 – falling 12.9 percent compared to the prior-year period.

Total group revenue reached HK$20.6 billion, a 1.9 percent decrease year-on-year. Adjusted EBITDA fell 7.7 percent to HK$1.5 billion in the half year.

SJM Holdings said mass table gaming revenue was down 0.5 percent year-on-year, while VIP gaming revenue fell 3.4 percent in 16H1. Slot machine operations revenue also fell 3.2 percent compared with the year-earlier period.

Bernstein said SJM’s second quarter results came below estimates, with EBITDA down 16 percent below consensus.

Adjusted EBITDA dropped significantly, down 16 percent year-on-year to HK$665 million partly due to bad luck in Grand Lisboa Premium Mass and higher costs, said Bernstein.

Looking ahead, SJM said the group’s performance in the second half of 2017 “will remain susceptible to the overall economic performance of the surrounding region, government regulatory policies, and the level of visitation to Macau, as well as to the competitive situation among the casino operators in Macau.”

Construction of the Grand Lisboa Palace has been suspended since a fatal accident involving a construction worker in June. The company said it continues to anticipate the opening of the Grand Lisboa Palace in the second half of 2018.