SJM Holdings 3Q net revenue dips 25pct as casino group swings to loss

Total net revenue at SJM Holdings Ltd fell 24.8 percent year-on-year in the third quarter, the Macau casino operator said in a Thursday filing to the Hong Kong Stock Exchange, giving selected highlights of its performance for the July to September period. Such revenue was just under HKD5.29 billion (US$673.9 million) versus HKD7.03 billion in the three months to September 30, 2025. Net gaming revenue for the latest reporting quarter was down 27.2 percent, at just under HKD4.76 billion. The firm swung to a HKD397-million loss for the third quarter, versus a HKD9-million profit in the prior-year period. Daisy Ho Chiu Fung, chairman of SJM Holdings and managing director of the concession-holding unit SJM Resorts Ltd, was cited as saying in an accompanying press release: “The third quarter was marked by softer market conditions and the temporary impact of renovation works across our portfolio.” She added: “We are maintaining disciplined cost management and advancing operational optimisation initiatives to protect margins and improve efficiency.” Cost controls at SJM Holdings “reduced third quarter average daily run-rate by 5 percent sequentially,” per the press release. SJM Resorts’ third-quarter GGR market share stood at 9.3 percent, compared with 11.8 percent a year earlier, noted the accompanying press release. The firm’s flagship operations are Grand Lisboa Macau, a casino hotel on Macau peninsula, and Grand Lisboa Palace Resort Macau (pictured), its large-scale resort in the city’s Cotai district. The firm also runs casino operations at Hotel Lisboa, a property owned by its parent, Sociedade de Turismo e Diversões de Macau SA (STDM). Hotel room renovation work is ongoing at the latter property, with the east wing closed for work from early October. The contribution to the group’s third-quarter total net revenue from hotel, catering, retail, leasing and related services business was actually up 6.6 percent year-on-year, at HKD530 million. That was “supported by a satisfactory average hotel occupancy,” per the press release. SJM Resorts’ third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were down 20.0 percent year-on-year, at HKD705 million. Adjusted EBITDA margin rose 0.8 of a percentage point, to 13.3 percent. During the third quarter, the group’s GGR derived from rolling chip table games business was HKD548 million, down 23.0 percent year-on-year. Non-rolling table games GGR was just over HKD4.40 billion, down 23.3 percent year-on-year. Electronic game GGR was HKD487 million, a decrease of 29.2 percent from the year-earlier period. Property performance Grand Lisboa Palace Resort Macau recorded total revenue of just over HKD1.71 billion for the quarter, down 10.3 percent year-on-year, “reflecting temporary revenue disruption during the phased renovation works in the mass gaming area, alongside higher volatility observed in rolling revenue”. That venue’s adjusted property EBITDA were negative by HKD38 million in the three months to September 30, versus a positive figure of HKD111 million in the prior-year period. Grand Lisboa Macau recorded total revenue of just under HKD1.81 billion, down 9.7 percent year-on-year. Its adjusted property EBITDA were HKD357 million, down 24.2 percent from the prior-year period. Grand Lisboa Macau operated with its “lowest hotel room inventory during the quarter, as phased renovation works at the lobby and common areas scaled up,” stated the accompanying press release. Per previous company commentary, Grand Lisboa Macau is due to see work on its “deluxe villas” and “mansions” project completed “ahead of the 2027 Lunar New Year”, which falls in early February. For the third quarter, the non-core properties of Casino Lisboa, Casino Oceanus at Jai Alai and Casino L’Arc Macau, together with related hotel and non-gaming operations, “remained the principal source of earnings momentum,” said the firm’s press release. Those venues’ total revenue grew 77.4 percent year-on-year to just under HKD2.45 billion, and their adjusted property EBITDA expanded by 46.0 percent to HKD438 million.