SJM Holdings Swings to Q1 2026 Loss

SJM Holdings reported a net loss attributable to equity holders of HK$62 million ($7.9 million) for the first quarter of 2026, reversing the HK$31 million ($4 million) profit recorded during the same period last year. The decline followed the full impact of the company’s exit from satellite casino operations, which ended in December 2025.

Despite lower revenue, the company said its transition toward a self-operated model helped limit pressure on Adjusted EBITDA through improved operating efficiency and stronger margins.

Gross gaming revenue for the quarter fell 18.8% year-on-year to HK$6.14 billion ($784 million). Net gaming revenue declined 22.8% to HK$5.36 billion ($685 million), while overall net revenue dropped 21.1% to HK$5.9 billion ($754 million). SJM’s Macau market share also decreased from 13.5% to 9.6%.

Adjusted EBITDA declined 4.3% year-on-year to HK$917 million ($117 million). However, the group’s Adjusted EBITDA margin improved to 15.5%, compared with 12.8% in the previous year, reflecting the leaner structure introduced after moving away from the satellite casino model.

Chairman Daisy Ho stated that the company’s first full quarter under the self-operated structure demonstrated improved operational discipline and higher efficiency. She added that the stronger EBITDA margin reflected the benefits of the new operating model, with SJM continuing to focus on portfolio optimization and guest experience improvements.

Grand Lisboa Palace Resort Macau continued to gain momentum during the quarter. The Cotai property generated total revenue of HK$2.07 billion ($264 million), up 7.2% year-on-year. Gross gaming revenue at the resort increased 11.7% to HK$1.75 billion ($224 million), while non-gaming revenue reached HK$318 million ($40.6 million).

Rolling chip volume at the property rose 26.5% to HK$14.18 billion ($1.81 billion), while rolling revenue climbed 32.7% to HK$580 million ($74.1 million), supported by stronger VIP business performance. However, Adjusted Property EBITDA at Grand Lisboa Palace fell 61.1% year-on-year to HK$58 million ($7.4 million), mainly because of rising operating costs.

Hotel occupancy at the Cotai resort slipped slightly to 94.6% from 98.7% a year earlier, showing continued strong visitation despite softer profitability during the property’s expansion phase.

Grand Lisboa Macau also delivered relatively stable results. Total revenue at the property reached HK$2 billion ($256 million), while GGR increased 6.7% year-on-year to HK$1.92 billion ($245 million). Adjusted Property EBITDA totaled HK$425 million ($54.3 million), slightly below the HK$440 million ($56.2 million) reported in Q1 2025.

The company’s broader portfolio, including Casino Lisboa, Casino L’Arc Macau and Casino Oceanus at Jai Alai, posted stronger growth. Combined GGR for the segment rose 83.6% year-on-year to HK$2.47 billion ($315 million). SJM attributed the increase to expanded gaming space at Casino Lisboa and the integration of Casino L’Arc Macau into its self-operated portfolio. Adjusted Property EBITDA for the segment increased 44.4% to HK$494 million ($63.1 million).