SJM’s Grand Lisboa Palace (GLP) recorded an Adjusted Property EBITDA loss of HK$423 million (US$54 million) in its first five months of operation, with revenues restrained by COVID-19 and the delayed launch of some key facilities.
Opened into the teeth of the pandemic on 30 July 2021, the HK$39 billion (US$5 billion) Cotai integrated resort produced gross revenue of HK$370 million (US$47 million) through 31 December 2021, of which HK$200 million (US$26 million) was GGR and HK$170 million (US$22 million) was non-gaming revenue. In the absence of any VIP operations, gaming revenue comprised HK$170 million (US$22 million) from mass gaming tables and HK$30 million (US$4 million) from slots, according to SJM’s 2021 results announcement.
The company told analysts on Monday’s earnings call that GGR at GLP had reached HK$161 million (US$21 million) in the December quarter although EBITDA loss also widened to HK$247 million (US$32 million), from HK$176 million (US$22.5 million) in its two months of operations in Q3.
SJM also reported a 48.7% hotel occupancy rate, having opened with only one of its three hotels – the 1,350-room Grand Lisboa Palace Macau – accepting guests. The Karl Lagerfeld launched in December while the Palazzo Versace has been expected to open within the next month, although brokerage Bernstein said in a Monday note that this could now be delayed due to current COVID-19 outbreaks in Hong Kong and Guangdong Province.
GLP aside, SJM’s group-wide results showed year-on-year improvement in 2021, with GGR up 25.3% to HK$10.37 billion (US$1.33 billion) and Adjusted EBITDA loss of HK$1.58 billion (US$202 million) narrowed from a loss of HK$2.09 billion (US$267 million) in 2020.
The results included a 4.1% increase in GGR at peninsula property Grand Lisboa to HK$2.15 billion (US$275 million), while SJM’s other self-promoted casinos – Casino Lisboa, Casino Oceanus at Jai Alai, Casino Eastern and Casino Taipa – saw GGR rise 10.1% to HK$1.49 billion (US$191 million). Revenue at the 14 satellite casinos running under SJM’s license saw revenues up 34.4% year-on-year to HK$6.53 billion (US$836 million).
In line with Macau market trends, growth was driven by the mass market with group-wide mass GGR up 44.6% year-on-year to HK$8.47 billion (US$1.08 billion) and slot machine GGR up 41.6% to HK$537 million (US$69 million). VIP GGR fell 33.3% to HK$1.36 billion (US$174 million).
SJM said it has not recommended payment of a final dividend for FY21 with loss attributable to owners of the company widened by 37.0% to HK$4.14 billion (US$530 million) on additional costs.
