SJM posts revenue decrease of 62% and net loss for Q1
SJM Holdings has reported a total revenue decline of 62% year-on-year for Q1 2020, with the coronavirus outbreak having a severe impact on the Macau-based operator.
Total revenue was down for the period ending 31 March, to HK$3.48bn ($449m), with net gaming revenue (NGR) decreasing by 60% to HK$3.41bn and gross gaming revenue (GGR) also down, to $3.94bn, 62% lower than 2019.
Adjusted EBITDA showed a massive fall, dropping 119% from last year, to negative HK$200m.
The Macau-headquartered operator posted a net loss of HK$409m, decreasing 148% from 2019 when SJM recorded a profit of HK$850m.
The group’s GGR accounted for 13% of Macau’s casino gaming revenue during the quarter, however that figure was down on 14% in 2019.
SJM attributed the huge losses to the severe impact of COVID-19, which led to the group’s 22 Macau casinos being closed for 15 days in February, along with ongoing travel restrictions in the region.
The group went on to add the outbreak will continue to impact operating results in 2020 and possibly beyond, with uncertainty meaning future results cannot be reasonably estimated.
However, the operator is optimistic its Grand Lisboa Palace casino will be open by the end of 2020.
April GGR for Macau casinos was down 97% on 2019, and also 88% less than March, at MOP754m ($94.5m).
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