Gaming operator SJM’s net profit fell 148% in Q1

SJM Holdings Ltd experienced a net loss of HKD409 million in the first quarter, a plunge of 148.1% from HKD850 million in profit over the same period last year.
According to the financial report of the gaming operator, the group’s total net revenue fell by 60% year-on-year to HKD3.47 billion.
The group’s first quarter results were severely impacted by the Covid-19 outbreak, which led to the closure of Macau casinos for 15 days in February.
Other factors include the ongoing restrictions on entry from the mainland, Hong Kong and other locations, curtailment of transportation channels, and quarantine requirements.
During the first quarter, the group’s VIP gross gaming revenue was HKD1.19 billion, a decrease of 69.6% from HKD3.93 billion in the same period in 2019, while mass market gross gaming revenue was HKD2.6 billion, a decrease of 57.9% from HKD6.19 billion.
Vice-chairman and CEO of SJM Holdings Limited, Ambrose So, commented, “we are optimistic, however, about the potential for our market to begin recovering later this year, particularly given the successful policies of the Macau and Central Government authorities in controlling the outbreak.”
When the market returns to growth, So said that SJM will be a “major contributor” due to the participation of its new resort, the Grand Lisboa Palace.
The gaming operator also disclosed that the group had begun the inspection and application process with the Macau government. Subject to obtaining the necessary operating permits, the project is expected to open by the end of 2020. LV