[Photo: Nadia Shaw]
SJM Holdings Ltd. posted a first-quarter loss for 2026 as the company fully shifted away from satellite operations, according to results released last week.
The operator reported a loss attributable to owners of HKD62 million in the three months ended March 31, reversing a HKD31 million profit a year earlier (1Q25), while its adjusted EBITDA margin improved to 15.5% despite a drop in revenue.
According to the company’s unaudited first-quarter announcement, SJM’s total net revenue fell 21.1% to HKD5.9 billion and gross gaming revenue (GGR) declined 18.8% to HKD6.135 billion, while the absence of satellite operations saw market share slip to 9.6% from 13.5% in 1Q25.
Adjusted EBITDA declined 4.3% to HKD917 million, boosting the margin to 15.5% – up 2.7 percentage points – signaling “rigorous operational discipline,” said SJM Chairman Daisy Ho in a prepared statement.
“In our first full quarter under a self-promoted model, the Group has demonstrated […] significant improvement in efficiency,” Ho noted. “As we transitioned away from the satellite model, the resulting increase in our adjusted EBITDA margin reflects a more streamlined and synergistic operating structure.”
The company said the satellite shake-up reshaped both its revenue mix and operating structure, with net gaming revenue down 22.8% to HKD5.364 billion and hotel, catering, retail, leasing and related services revenue edging up to HKD539 million.
Seaport flags slow ramp-up and weak returns
Following the earnings announcement on Thursday, Seaport Research Partners’ senior analyst Vitaly Umansky wrote that SJM’s leverage would decline by the end of 2027 to an amount 6.8 times EBITDA, a measure of a business’s cash-generating power.
“[…] we see no likelihood of dividends at least for the next 3+ years,” the global gaming analyst wrote.
Another concern pointed out by Umansky was regarding Grand Lisboa Palace’s “slow pace of ramp-up,” which was described as a “significant concern” that could limit any “potential positive view.”
In spite of non-gaming additions to GLP and a focus on premium mass, Seaport forecasts a marginal market share improvement for the remainder of 2026 only.
“The return on investment remains abysmally low and unlikely to achieve anything approaching positive value creation (vs. cost of investment) in the foreseeable future (if at all),” Seaport stated.
A lack of a strong ability to aggressively capture more of the premium mass segment could prevent this Cotai property from gaining “material share.” “Our concern is that GLP share may be hitting a ceiling in the low 3% range, unless there is a material change in strategy and execution,” Umansky added.
SJM properties mixed as GGR rises
By property, the Grand Lisboa Palace Resort saw revenue climb to HKD2.1 billion, with GGR up 11.7% to HKD1.8 billion on 26.5% higher rolling volume from VIP enhancements in the first quarter. Adjusted property EBITDA fell to HKD58 million from HKD149 million, hit by elevated costs, while hotel occupancy eased to 94.6%.
Grand Lisboa Macau saw GGR rise 6.7% year-on-year to HKD1.9 billion – supporting revenue of HKD 2 billion and adjusted property EBITDA of HKD425 million, down slightly from HKD440 million. Hotel occupancy there held steady at 97.7%.
Other properties – including Casino Oceanus at Jai Alai, Casino Lisboa, and Casino L’Arc Macau – saw GGR rising 83.6% year-on-year in the quarter to HKD2.5 billion. This increase was attributed to expanded space at Lisboa and L’Arc Macau contributions.
Non-gaming revenue from hotels, catering and retail increased 1.7% year-on-year to HKD 539 million, with group hotel occupancy at 94.4%.
Groupwide average hotel occupancy fell 2.9 percentage points to 94.4%.
Liquidity stood at HKD3.4 billion in cash and equivalents against HKD30.2 billion debt, while undrawn revolving credit totaled HKD3.4 billion from HKD11.5 billion facilities.
The company said it remains “focused on completing our property enhancements” to improve guest experience and shareholder value.
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