SJM Holdings records revenue of HK$4.12 billion (£433.7 million / €515.6 million / $524.9 million) in the first half of 2022, with up to 5 billion from equity issuance and parent company financing announced plans to raise HK$30 million.
SJM Holdings’ half-year results showed a 20.9% decline in revenue compared to the 2021 half-year.
This is even lower than its pre-pandemic first half 2019 revenue of HK$17.07 billion, down 75.8%.
Revenue from games alone was HK$3.81 billion, down 24.9% year-on-year and down 77.2% from 2019. Revenue from the mass market table games business accounted for the bulk of this, at HK$3.43 billion. VIP game business reached a total of HK$386.9 million, while slot machine and other gaming business revenue was HK$248 million.
The remaining HK$317.7 million came from hotel, catering, retail and leasing related income.
Combined special gambling tax, special levies and gambling insurance premiums amounted to HK$1.66 billion, bringing total net gaming income to HK$2.14 billion.
Income from hotels, catering, retail, leasing and other services amounted to HK$317.7 million, while profit sharing from joint ventures added HK$2.2 million.
Expenses increased despite lower revenues.
The highest expense was operating and administrative expenses of HK$4.36 billion, up HK$513.9 million from the first half of 2021. Finance costs were HK$398 million for him, an increase of HK$381.4 million for him over the previous year.
The remaining HK$462.1 million consisted of marketing and promotion expenses, sales and service expenses related to hotel operations and other losses.
Loss before tax after deduction of expenses was HK$2.75 billion. After taxation of HK$10.7 million, his total loss for the period was HK$2.77 billion, an increase of 84.9% over the previous year’s loss.
This was HK$4.5 billion lower than pre-pandemic levels.
Adjusted EBITDA was a loss of HK$1.17 billion, more than double the loss of HK$510 million in the first half of 2021.
Caisno Grand Lisboa’s gross gaming revenue (GGR) was HK$705 million, while Grand Lisboa Palace’s was HK$231 million. His GGR at other self-promoted casinos consisting of Casino Lisboa, Casino Oceans at Jai Alai, Casino Eastern and Casino Taipa was HK$674 million.
Satellite casinos associated with 14 third-party promoted casinos brought in HK$2.46 billion in GGR.
The company also mentioned details of the equity issuance it will undertake, along with a HK$2 billion loan from its parent company, Sociedade de Turismo e Diversões de Macau.
Sociedade de Turismo e Diversões de Macau will provide SJM with a loan of HK$2 billion over six years at an annual interest rate of 4%.
As part of the financing, up to 1.45 billion shares will be issued, priced at HK$2.08 per share. After deducting expenses, SJM Holdings expects to raise HK$3.01 billion from He HK$2.93 billion.
A total of HK$2.7 billion in proceeds will be used to invest in SJM Resorts. This is due to the minimum level of share capital that SJM Resorts must be eligible for to obtain either: Six tenders issued by the Macau government.
