Gaming operator SJM Holdings Limited reported yesterday a loss of HK$3.03 billion last year.
In 2019, Macau’s longest-operating gaming concessionaire reported a profit of HK$3.2 billion.
The company, whose predecessor STDM was founded by legendary casino mogul Stanley Ho Hung Sun six decades ago, announced its 2020 annual results in a statement to the Hong Kong Stock Exchange.
Net gaming revenue fell by 78 percent to HK$7.3 billion patacas. Hotel, catering, retail and other income dropped by 65.8 percent to HK$359 million, accounting for 4.7 percent of the company’s total income in 2020.
Adjusted EBITDA decreased by 149.6 percent to HK$2.09 billion.
The statement admitted that SJM Holdings was “severely impacted by the COVID-19 outbreak” last year.
Macau confirmed its first novel coronavirus disease case on January 22 last year.
According to the statement, SJM had a 14.1 percent share of Macau’s gross gaming revenue last year, including 19.7 percent of mass market table gaming revenue and 8.0 percent of VIP gaming revenue.
Grand Lisboa Hotel’s occupancy rate declined by 76.0 percent to 17.9 percent for the full year, while its average room rate decreased by 2.9 percent to HK$1,465.
The statement pointed out that the company maintained its strong balance sheet, with cash, bank balances, short-term and pledged bank deposits totalling HK$6.2 billion at the end of last year.
According to the statement, the company “anticipates” opening Grand Lisboa Palace resort in Cotai “during the first half of 2021.”
The statement quoted SJM Holdings Vice Chairman and CEO Ambrose So Shu Fai as saying that “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” of last year.
At the end of last year, SJM owned 22 of Macau’s 41 casinos, according to the Gaming Inspection and Coordination Bureau (DICJ) website. However, the operations of four SJM casinos were suspended at that time.
