SJM Holdings, one of the leading integrated resort operators in Macau, has reported impressive financial results for the full year 2023, showcasing significant growth in net gaming revenue and other income categories.
SJM Holdings Revenue
SJM Holdings Unprecedented Surge in Revenue
In 2023, SJM Holdings achieved a remarkable 229.3% increase in net gaming revenue, reaching HK$20.06 billion (US$2.57 billion), compared to HK$6.1 billion reported in the previous year. Additionally, other income categories, including hotels, catering, and retail, experienced a substantial 191.3% growth, totaling HK$1.82 billion.
Turnaround in Adjusted EBITDA
SJM Holdings demonstrated a significant turnaround in its adjusted EBITDA, transitioning from a net loss in 2022 to a net profit in 2023. The company reported a net loss of HK$3.1 billion for FY22, while in 2023, it achieved a net profit of HK$1.7 billion. Moreover, the loss attributed to the owners of SJM Holdings saw a substantial reduction, decreasing from HK$7.8 billion in FY22 to HK$2.01 billion in FY23.
Market Share and Flagship Properties
SJM Holdings maintained a significant market share of 11.9% of Macau’s gross gaming revenue, underscoring its strong position in the region’s gaming landscape. Grand Lisboa, one of the company’s flagship properties, reported a total revenue of HK$5.75 billion for FY23, with 94.6% derived from gross gaming revenue and 5.3% from non-gaming operations. The property witnessed remarkable growth in both gaming and non-gaming revenue streams, reflecting a 408% increase in gross gaming revenue and a 132% rise in non-gaming revenue compared to the previous year.
Grand Lisboa Palace’s Performance
Grand Lisboa Palace, another key property under SJM Holdings’ portfolio, generated HK$3.67 billion in revenue, with HK$2.69 billion attributed to gaming activities and HK$980 million to non-gaming endeavors. Despite challenges posed by the COVID-19 pandemic, the property experienced a significant 667% growth in gross gaming revenue, demonstrating resilience and adaptability in a rapidly evolving market. Although adjusted property EBITDA remained at a loss, the company reported a notable reduction in losses compared to the previous year, indicating progress towards profitability.
Chairman’s Confidence and Outlook
Commenting on the company’s performance, SJM Holdings Chairman Daisy Ho expressed confidence in the substantial recovery of gaming and non-gaming revenues from the pandemic years. She highlighted the strong sequential growth in adjusted EBITDA and the steady progress in the ramp-up of Grand Lisboa Palace, reaffirming the company’s commitment to sustainable growth and value creation for shareholders.
FAQs About SJM Holdings’ Financial Results
1. What were the company’s financial results for the full year 2023?
The company reported impressive financial results for the full year 2023, including a significant increase in net gaming revenue and other income categories. The company showcased remarkable growth, positioning itself as a key player in the global gaming industry.
2. How much did SJM Holdings’ net gaming revenue increase in 2023?
In 2023, the company achieved a remarkable 229.3% increase in net gaming revenue, reaching HK$20.06 billion (US$2.57 billion), compared to HK$6.1 billion reported in the previous year. This substantial growth underscores the company’s strong performance in the gaming sector.
3. What contributed to SJM Holdings’ impressive financial performance?
The financial success in 2023 can be attributed to several factors, including diversified revenue streams, effective cost management strategies, and operational resilience. The company experienced significant growth across multiple sectors, reflecting its strategic initiatives amidst challenging market conditions.
4. How did SJM Holdings fare in terms of adjusted EBITDA?
The company demonstrated a significant turnaround in its adjusted EBITDA, transitioning from a net loss in 2022 to a net profit in 2023. The company reported a net profit of HK$1.7 billion for FY23, reflecting its improved financial performance and operational efficiency.
5. What is SJM Holdings’ market share in Macau’s gaming industry?
It maintained a significant market share of 11.9% of Macau’s gross gaming revenue, highlighting its strong position in the region’s gaming landscape. The company’s market share underscores its leadership and influence in the Macau gaming market.
How did the company’s flagship properties perform in 2023?
The company’s flagship properties, including Grand Lisboa and Grand Lisboa Palace, reported impressive revenue figures for FY23. Grand Lisboa witnessed remarkable growth in both gaming and non-gaming revenue streams, while Grand Lisboa Palace demonstrated resilience and adaptability despite challenges posed by the COVID-19 pandemic.
What is the outlook for SJM Holdings in the future?
SJM Holdings’ leadership, including Chairman Daisy Ho, expressed confidence in the company’s substantial recovery and growth prospects. With strong financial performance and strategic initiatives in place, SJM Holdings is poised for continued success and value creation for shareholders in the global gaming industry.
