SJM records 74.4% fall in first half gaming revenue

Net gaming revenue at Sociedade de Jogos de Macau (SJM) fell 74.4% in the first half of 2020, according to financial results disclosed yesterday by the firm, with the VIP segment falling faster than mass.
According to the selected financial results, mass market gaming revenue of the company decreased 73.5% and VIP gross gaming revenue showed a decrease of 81.6% during the first half of the year. During the same period, slot machine gross revenue fell 59.2%.
In the first half of the year, gross gaming revenue across all six Macau operators fell 77.4% in year-on-year terms to just MOP33.7 billion, with about two-thirds of the revenue earned in January alone.
Meanwhile, SJM said that the Group’s Adjusted EBITDA Margin decreased to negative 22.5% from 12.2% in the first half of 2019.
The casino operator cited the Covid-19 pandemic as the chief cause behind the sudden collapse in gaming revenue. It pointed to the 15-day closure of casinos in February, as well as ongoing restrictions on entry from the mainland, Hong Kong and other locations as specific consequences of Covid-19 that have crippled gaming revenues.
“SJM’s first half results reflect the severe contraction in travel and tourism caused by the Covid-19 pandemic,” said Ambrose So, Vice-Chairman and Chief Executive Officer of SJM Holdings Limited, in prepared comments.
Even so, SJM maintains a strong financial position, the company said, with cash, bank balances and pledged bank deposits of more than HKD7.5 billion as of June 30, 2020.
“In this environment, we strive to control our running costs at a prudent level. […] We are confident that when the region emerges from the pandemic, SJM will be at the forefront of Macau’s resumed development into a world centre of tourism and leisure.” DB