SJM loses $182m in H1, no return to Macau on line casino ‘regular’ this 12 months

Macau on line casino operator SJM Holdings misplaced over $182m within the first half of 2020 and the corporate doesn’t anticipate a return to pre-pandemic regular anytime this 12 months.  

On Tuesday, the Hong Kong-listed SJM reported producing income of HK$4.37b (US$564.4m) within the six months ending June 30, practically three-quarters beneath the sum generated in the identical interval final 12 months. Earnings had been a detrimental HK$1b and the corporate booked a internet lack of HK$1.41b versus a revenue of HK$1.68b in H1 2019.

SJM’s VIP income slid 81.6% to HK$1.37b in H1 regardless of the maintain price rising greater than half a degree to three.67%, as high-roller turnover tumbled 84.5%. On the finish of H1, SJM had 192 VIP tables in motion with 14 junket operators, down from 275 tables and 15 junkets on the finish of 2019. SJM’s share of Macau’s general VIP income fell greater than two factors from H1 2019 to simply 8.6%.

Over on the mass market tables, income fell 73.5% to HK$3.3b because the variety of tables in motion fell by round 40%. However SJM fared higher than a few of its rivals, as its share of Macau’s general mass desk enterprise rose 3.Eight factors year-on-year to 22%.

SJM’s slot machines and different gaming operations noticed income down practically three-fifths to simply HK$235m as its variety of lively slots fell to 1,084 from 2,439 on the finish of 2019. Regardless of these declines, SJM’s share of Macau’s general slots market shot up 4.Three factors to 12.2%.

The Macau market’s common lack of consumers was on full show at SJM’s flagship property, the On line casino Grand Lisboa, which reported common each day visitation of round 6,600 throughout H1, down from 35ok per day in H1 2019.

SJM famous that there had lately been a “minor easing of restrictions” on mainland Chinese language visiting Macau with out having to quarantine upon their return. However surges in new COVID-19 circumstances in Hong Kong means journey will stay restricted “not less than till September.”

SJM added that Chinese language authorities had but to supply any indication as to after they would possibly resume issuing journey permits below the Particular person Go to Scheme (IVS) or permitting group package deal excursions. Even after these insurance policies resume, SJM stated it couldn’t predict whether or not there could be residual impacts from skittish customers viewing journey as an pointless danger for an extended whereas to return.  

Because of this, SJM expects its income “will proceed to be negatively impacted by COVID-19 for an indefinite interval sooner or later” and the corporate dismissed the concept of any return to ‘regular’ income charges “throughout any a part of 2020.” Clearly, this isn’t the report that SJM would have most popular to subject following the current dying of its founder Stanley Ho.

As for what the continually fluid COVID-19 state of affairs means for the Grand Lisboa Palace, SJM’s flashy new built-in resort on Cotai, the corporate stated solely that it was awaiting the go-ahead from native regulators to launch operations earlier than 12 months’s finish.