SJM Holdings, one of Macau’s most prominent concessionaires, has revealed its financial performance for the first half of 2024, showcasing significant recovery and growth across multiple sectors. Despite the lingering impact of the pandemic on the global economy, the company has managed to achieve a notable increase in revenue and profitability, marking a strong rebound as Macau’s tourism and gaming industries continue to recover.

SJM Holdings Reports Robust Growth in H1 2024

Impressive Revenue Growth Amidst a Challenging Environment

In H1 2024, SJM Holdings reported a total net revenue of HK$13.8 billion (approximately $1.77 billion), reflecting a 47.4% year-on-year increase. This figure, although impressive, remains slightly below the pre-pandemic levels of 2019, when the company recorded HK$17 billion in net revenue. The ongoing recovery in Macau’s gaming industry, coupled with SJM’s strategic initiatives, has contributed to this robust performance.

Surge in Gross Gaming Revenue (GGR)

The gross gaming revenue (GGR) for the period stood at HK$13.8 billion, representing a 50.3% increase compared to H1 2023. However, this figure still falls short of the HK$20.4 billion achieved in 2019. The resurgence in gaming activity, particularly among high-value customers, has been instrumental in driving this growth, although the full recovery to pre-pandemic levels remains a work in progress.

Non-Gaming Revenue: A Key Driver of Growth

One of the standout performers in SJM’s financials was its non-gaming revenue, which soared to HK$904 million, marking a 35.7% year-on-year increase. This figure is particularly noteworthy as it is almost triple the HK$354 million recorded in 2019. The substantial growth in non-gaming revenue underscores SJM’s successful diversification strategy, focusing on expanding its food and beverage offerings, retail, and other entertainment services.

Enhanced Profitability and Operational Efficiency

Adjusted EBITDA for the first half of 2024 reached HK$1.73 billion, a staggering 275.9% increase year-on-year. The adjusted EBITDA margin also improved significantly, rising by 7.7 percentage points to 12.6%. This remarkable growth in profitability highlights the company’s effective cost management strategies and its ability to capitalize on the gradual recovery in Macau’s tourism and gaming sectors.

Hotel Occupancy: A Strong Indicator of Recovery

SJM Holdings’ hotels also performed exceptionally well, with an average occupancy rate of 94.2%. This represents a significant improvement from the 85.9% occupancy rate in 2023 and even surpasses the 88.4% rate achieved in 2019. The high occupancy rates reflect the resurgence in tourist arrivals to Macau, driven by the easing of travel restrictions and the growing appeal of SJM’s integrated resort offerings.

Key Revenue Contributors: Grand Lisboa Palace and Grand Lisboa Macau

Among SJM’s portfolio of properties, Grand Lisboa Palace and Grand Lisboa Macau were the top revenue generators. Grand Lisboa Palace reported gross revenue of HK$2.95 billion, while Grand Lisboa Macau generated HK$3.8 billion. These flagship properties continue to be pivotal in driving SJM’s overall financial performance, attracting both gaming and non-gaming patrons.

Self-Promoted Casinos: A Remarkable Upsurge

In addition to its flagship properties, SJM’s self-promoted casinos saw a significant boost in performance, with a 135.4% increase in non-rolling GGR. This growth underscores the effectiveness of SJM’s targeted marketing efforts and its ability to attract a diverse range of customers across different market segments.

Strategic Initiatives and Future Outlook

Daisy Ho, Chairman of SJM Holdings Limited and Managing Director of SJM Resorts, expressed optimism about the group’s future, citing substantial progress in both gaming and non-gaming sectors. She highlighted the company’s commitment to further enhancing its food and beverage portfolio, which has been a key area of growth in recent years.

Kam Pek Market Revitalisation and Global Brand Elevation

Looking ahead, SJM is poised to advance the initial phase of the Kam Pek Market revitalisation plan, a project aimed at transforming one of Macau’s historic markets into a modern, vibrant hub that will attract both locals and tourists. In addition, SJM plans to host various branded sporting competitions, a strategic move designed to elevate the international profile of the Lisboa brand and extend Macau’s influence in global markets.

Conclusion: A Promising Road Ahead for SJM Holdings

As SJM Holdings continues to navigate the post-pandemic landscape, its strong financial performance in H1 2024 is a testament to the resilience of Macau’s gaming and hospitality industries. With strategic initiatives focused on diversification, brand elevation, and market expansion, SJM is well-positioned to capitalize on the opportunities ahead, driving sustained growth and value for its shareholders.

FAQs About SJM Holdings’ Financial Performance in H1 2024

1. What was SJM Holdings’ total net revenue for the first half of 2024?

SJM Holdings reported a total net revenue of HK$13.8 billion (approximately $1.77 billion) for the first half of 2024. This represents a 47.4% increase year-on-year.

2. How did SJM Holdings’ gross gaming revenue (GGR) perform in H1 2024?

The gross gaming revenue (GGR) for SJM Holdings in H1 2024 was HK$13.8 billion, which marks a 50.3% increase compared to the same period in 2023. However, it remains lower than the HK$20.4 billion achieved in 2019.

3. What was the performance of SJM Holdings’ non-gaming revenue?

SJM Holdings saw significant growth in its non-gaming revenue, which increased to HK$904 million in H1 2024. This is a 35.7% year-on-year increase and almost triple the HK$354 million recorded in 2019.

4. What was the adjusted EBITDA for SJM Holdings in H1 2024?

The adjusted EBITDA for SJM Holdings in H1 2024 was HK$1.73 billion, a 275.9% increase year-on-year. The adjusted EBITDA margin also improved by 7.7 percentage points, reaching 12.6%.

5. How did SJM Holdings’ hotel occupancy rates compare to previous years?

SJM Holdings achieved an average hotel occupancy rate of 94.2% in H1 2024. This is higher than the 85.9% occupancy rate in 2023 and the 88.4% rate in 2019.

6. Which SJM properties were the top revenue generators in H1 2024?

Grand Lisboa Palace and Grand Lisboa Macau were the top revenue-generating properties for SJM Holdings in H1 2024. Grand Lisboa Palace reported gross revenue of HK$2.95 billion, while Grand Lisboa Macau generated HK$3.8 billion.

7. What are SJM Holdings’ plans for future growth?

SJM Holdings plans to advance the Kam Pek Market revitalisation project and host various branded sporting competitions. These initiatives aim to elevate the Lisboa brand’s international profile and extend Macau’s influence in global markets.

8. What strategic initiatives has SJM Holdings undertaken in H1 2024?

SJM Holdings focused on enhancing its food and beverage portfolio, advancing the Kam Pek Market revitalisation plan, and organizing branded sporting competitions to strengthen its market position and global brand presence.