Gaming | SJM’s first-half profit falls 54pct

SJM’s profit fell by 54.1 percent year-on-year in the first half of 2015, the company said in a filing yesterday to the Hong Kong Stock Exchange.
The profit for the six months from the start of the year until June 30 amounted to approximately HKD1.79 billion, compared to approximate figure of HKD3.90 billion from the first semester of 2014.
The board approved an interim dividend of HKD0.10 per ordinary share for the reporting period, which is likely to be paid on September 16 to shareholders who are registered as of September 4. At the same time last year, SJM was paying a dividend of HKD0.22 per ordinary share.
In the first six months of this year, the gaming revenue of Macau’s oldest operator fell 40.3 percent year-on-year to approximately HKD26.32 billion, compared to approximately HKD44.11 billion, recorded a year earlier. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) slipped 49.1 percent to approximately HKD2.26 billion.
SJM Holdings said the group had maintained “a strong financial position” in the first half, with cash, bank balances and pledged bank deposits totaling nearly HKD22.83 billion as of June 30.
The company also said in its filing that it was making “good progress” on Lisboa Palace, its new casino resort located in the Cotai district of Macau. In February the firm had described the scheme as a HKD30-billion project.
“Foundation work was essentially completed by the first quarter of 2015, so the construction on the superstructure and basement levels is now well underway,” SJM Holdings said.
Ambrose So, chief executive officer of SJM Holdings, said, “While challenging conditions persisted throughout the first half of the year, SJM has focused on enhancing customer service and controlling costs to the [most precise] extent possible. We remain optimistic about the future of the Macau market, and we are proceeding with the construction of the Lisboa Palace integrated resort on Cotai, on which substantial progress has been made and for which we are on target for completion in 2017.” MDT/Lusa