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SJM Holdings, a key player in Macau’s gaming industry, has released its full-year financial report for 2023, revealing a remarkable 229.3% surge in net gaming revenue (NGR). This substantial growth, coupled with improved adjusted EBITDA figures, marks a notable recovery post-Covid compared to the challenges faced in FY22.
In FY23, SJM Holdings reported net gaming revenue of HK$20.06bn (US$2.57bn), a significant leap from the HK$6.1bn recorded in FY22. Additionally, other income streams such as hotels, catering, and retail witnessed robust growth, contributing HK$1.82bn to SJM Holdings’ overall revenue, showcasing a 191.3% increase.
One of the most notable highlights of SJM Holdings’ FY23 report is the return to profitability in adjusted EBITDA. After facing a net loss in FY22, the company reported a net profit of HK$1.7bn in FY23, indicating a positive turnaround in operational performance and financial health. Losses attributed to the owners of SJM Holdings also saw a significant reduction, further underlining the company’s recovery trajectory.
SJM Holdings maintained a strong market presence, holding an 11.9% share of Macau’s gross gaming revenue. This market share, coupled with the robust revenue growth, reflects the company’s strategic positioning and competitiveness in the Macau gaming landscape.
Within SJM Holdings’ revenue portfolio, Grand Lisboa emerged as a significant revenue generator, contributing HK$5.75bn to the company’s overall revenue in FY23. The casino’s gross gaming revenue witnessed a remarkable 408% increase, highlighting its pivotal role in driving revenue growth for SJM Holdings.
Grand Lisboa Palace, another key asset for SJM Holdings, reported revenue of HK$3.67bn, with substantial contributions from both gaming and non-gaming segments. Despite an adjusted property EBITDA loss, the reduction in losses from the previous year indicates positive operational advancements and a steady ramp-up process for Grand Lisboa Palace.
The emphasis on non-gaming revenue sources, particularly in the post-pandemic era, has been a strategic focus for SJM Holdings and the broader Macau gaming industry. Executives like MGM China President & COO Hubert Wang emphasize the significance of diversified offerings to enhance Macau’s appeal as a leisure destination.
Reflecting on the FY23 results, SJM Holdings Chairman Daisy Ho expressed satisfaction with the substantial revenue recovery and operational progress. The strong sequential growth in adjusted EBITDA and the ongoing ramp-up of Grand Lisboa Palace signal a positive outlook for SJM Holdings as it navigates the evolving gaming landscape in Macau.