Macau gaming concessionaire SJM Holdings has reported a loss attributable to owners of the company of HK$3.03 billion (US$391 million) in 2020, impacted by the global COVID-19 pandemic and ongoing delays to the opening of its long-awaited Cotai integrated resort, Grand Lisboa Palace.
The full year result followed another tough quarter for SJM in Q4, which saw the company suffer an Adjusted EBITDA loss of HK$323 million (US$42 million) on a 76% year-on-year decline in GGR to HK$2.43 billion – despite both representing significant improvement over 3Q20 when SJM reported an Adjusted EBITDA loss of HK$782 million (US$101 million) and GGR of HK$948 million (US$122 million).
Without a presence in Cotai, SJM remained the only Macau gaming operator yet to achieve break-even EBITDA since border restrictions with mainland China were eased late last year. It also lost market share in Q4, down from around 20% in the third quarter to 11.5%, including just 2.7% at current flagship Grand Lisboa, although analysts noted overnight that recent increases in visitor traffic to Macau have seen market share edge closer to its historical average of around 14%.
SJM itself didn’t report 4Q20 earnings separately in filings to the Hong Kong Stock Exchange, focusing instead on full year results where Adjusted EBITDA declined 149.6% year-on-year to a loss of HK$2.09 billion (US$270 million) and GGR by 76% year-on-year to HK$8.27 billion (US$1.07 billion).
The FY20 results included an 85.1% decline in VIP GGR to HK$2.04 billion (US$263 million), accounting for 24.6% of SJM’s GGR, and a 76.7% fall in mass GGR to HK$5.86 billion (US$756 million).
At Grand Lisboa, located on the Macau peninsula, GGR declined 84.0% to HK$2.07 billion (US$267 million) in FY20, resulting in an Adjusted EBITDA loss of HK$872 million (US$112 million).
Self-promoted casinos, comprising Casino Lisboa, Casino Oceanus at Jai Alai, Casino Eastern and Casino Taipa, saw GGR down 78.5% year-on-year to HK$1.35 billion (US$174 million) with an Adjusted EBITDA loss of HK$666 million (US$86 million).
Meanwhile, the 13 satellite casinos operating under SJM’s license reported GGR of HK$4.85 billion (US$625 million), down 76.6% year-on-year, with an Adjusted EBITDA loss of HK$152 million (US$19 million).
“Although SJM’s results for the full year 2020 reflect the severe reduction in travel and tourism caused by the COVID-19 pandemic, we are encouraged to see the beginnings of recovery starting in the fourth quarter,” said SJM Vice-Chairman and CEO Ambrose So.
“We expect continued gradual restoration of business throughout 2021, during which time our Grand Lisboa Palace will be inaugurated, marking our entry to the Cotai sector of the market.”
