SJM revenue grows in 2021 after Grand Lisboa Palace opening
SJM Holdings has reported yearly revenue of HK$10.08bn (£960.0m/$1.29bn/€1.15bn) for 2021, representing a 34.2% increase on the previous year.
Gaming revenue accounted for HK$9.61bn of the total, up from HK$7.30bn in 2020. HK$8.47bn came from mass market table games, HK$1.36bn resulted from VIP gaming operations, while slot machines and other gaming operations added HK$537.1m.
2021 saw the opening of SJM's Grand Lisboa Palace on Cotai Macau. The integrated resort contributed HK$370.0m revenue during the year. HK$200.0m came from gaming revenue, while non-gaming sources added HK$170.0m.
The remaining revenue came from hotel, catering and retail services to the tune of HK$468.1m.
Expenses for the year amounted to HK$10.21bn, a 37.0% increase on 2020. Operating and administrative costs were the largest expense at HK$8.38bn.
Marketing and promotional expenses came to HK$1.15bn, finance costs totaled HK$343.3m, and sales costs amounted to HK$336.6m. The company also had to pay a gaming tax of HK$4.19bn.
Pre-tax losses for SJM amounted to HK$4.18bn. After accounting HK$21.4m of income tax, net losses for the year were HK$4.20bn, up from HK$3.17bn the year prior.
SJM also posted a negative adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HK$1.58bn, which was a 24.3% increase on 2020.
Macau's Legislative Assembly recently approved an amendment to the region's gaming legislation, which increased the number of concessions to operate a casino from three to six, at first reading. The bill would also remove subconcessions, meaning that in practice the number of operators would remain the same.
A maximum limit on the number of gaming machines and table games will also come into force, with the Macau Chief Executive setting a minimum limit of annual gross gaming revenue (GGR) per gaming table and gaming machine.