Gaming | SJM records 38.7 percent fall in profit

Casino operator SJM Holdings Ltd. has published its financial statement for the first half of 2016, showing a 38.7 percent fall in net profit to just under HKD1.1 billion compared with the first half of 2015.
In the same period, the total revenue of the group amounted to HKD21.13 billion, of which gaming revenue accounted for the majority, HKD20.89 billion, but was still down by more than one-fifth year-on-
year.
Analyzed by sector, mass market table gaming revenue of SJM Holdings decreased by 11.5 percent year-
on-year during the first half of 2016, while VIP gaming revenue was down by 28.5 percent. Meanwhile, slot machines fare better, seeing a smaller drop of 8.3 percent compared with the first half of last year.
As for the group’s flagship hotel, Casino Grand Lisboa, SJM Holdings noted that the property’s revenue, adjusted property EBITDA and attributable profit were down by 25.3 percent and 30.8 percent and 35.2 percent respectively, as compared to a year earlier.
Meanwhile the occupancy rate of the hotel increased by 10.4 percent from the first half of last year to 90.5 percent. Average daily room rate decreased during the period by 32.9 percent to HKD1,609.
In its statement, the group said that it has maintained a strong financial position with cash, bank balances and pledged bank deposits totaling nearly HKD14.62 billion as of June 30.
The company declared an interim dividend of HKD0.06 for the period, down 40 percent from the HKD0.1 it paid a year ago.