SJM Holdings faces earnings headwinds as first-half revenue drops 20.8 percent

SJM Holdings reported unaudited financials yesterday with the group announcing a 20.8 percent decrease in revenue over the first six months of this year. Losses were weighed down by a 22.5 percent drop in net gaming revenue, driven in part by the 27.8 percent increase in commissions and incentives paid. Gross gaming revenue (GGR) came in at HK$12.1 billion (US$1.55 billion), representing a 18.5 percent drop. 

The group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) edged up 3.3 percent to HK$1.7 billion, which was broadly in-line but lower than consensus estimates, mainly due to higher finance costs and depreciation from the acquisition of a hotel property.

Headwinds against earnings at SJM Holdings will likely persist until the revamp of the mass gaming floor at Grand Lisboa Palace is completed, noted CLSA’s Jeffrey Kiang in comments sent to The Bay. The analyst added that without faster growth in Macao’s overall gaming revenues, financial deleverage would be harder to achieve, delaying the resumption of dividends.

[See more: Macao’s gambling revenues set for an August pickup: Jefferies]

The interim results were also dampened by the closure of satellite casinos. As of 30 June 2025, SJM operated nine affiliated venues that generated HK$5.6 billion in casino GGR a year ago, feeding adjusted property EBITDA of HK$153 million. 

SJM Holdings: changes at Grand Lisboa Palace

SJM Holdings meanwhile mentioned that idle resources would be deployed to enhance the gaming mix and optimise floor utilisation at Grand Lisboa Palace. 

During the reported period, Grand Lisboa Palace opened the Garden House, an indoor-outdoor dual garden concept to support Macao’s MICE initiatives. Property restaurants Palace Garden and Don Alfonso 1890 each attained one Michelin Star, bringing the group’s total to eight. The group also highlighted its involvement in the “Experience Macao” roadshow alongside the Macao Government Tourism Office, as well as its backing of the 55th Skål International Asia Congress.

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At the SJM Holdings property level, total revenues at Grand Lisboa Palace rose 8.6 percent to HK$3.9 billion with casino GGR gaining 12.9 percent. Rolling chip volumes jumped 16.9 percent as win rates improved to 3.7 percent, 90 basis points above last year. 

Total revenue at Grand Lisboa Macau grew 6.6 percent to HK$4.0 billion with casino GGR rising 7.1 percent to HK$3.8 billion. Rolling chip volumes gained 18.1 percent to HK$13.0 billion though win rates slipped to 2.9 percent.