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Post by Blitz on May 9, 2024 7:16:59 GMT -5
Macau’s SJM reports 77% year-on-year GGR increase to US$881 million in 1Q24 by Ben Blaschke - Thu 9 May 2024 at 19:03 www.asgam.com/index.php/2024/05/09/macaus-sjm-reports-77-year-on-year-ggr-increase-to-us881-million-in-1q24/Macau concessionaire SJM Holdings reported gross gaming revenue of HK$6.89 billion (US$881 million) in the three months to 31 March 2024, up 77.3% year-on-year and continuing the company’s steady recovery since borders reopened in early 2023. SJM also reported a narrowed loss attributable to owners of the company of HK$74 million (US$9.5 million) compared with a HK$869 million (US$111 million) loss a year earlier, while Adjusted EBITDA increased to HK$864 million (US$110 million) versus HK$31 million in 1Q23. The improved performance was evidenced across the board but nowhere more so than at SJM’s Cotai integrated resort, Grand Lisboa Palace, where GGR grew by 258% year-on-year to HK$1.11 billion (US$142 million). Adjusted Property EBITDA of HK$88 million (US$11.3 million) reversed an Adjusted Property EBITDA loss of HK$230 million (US$29.4 million) in the prior year period. However, peninsula property Grand Lisboa continues to be the company’s shining light with GGR up 102% to HK$1.88 billion (US$240 million), while Adjusted Property EBITDA was up 243% to HK$535 million (US$68.4 million). SJM’s self-promoted casinos – Sofitel at Ponte 16 and Jai Alai – recorded combined GGR of HK$1.26 billion (US$161 million), up 34.0% year-on-year, with Adjusted Property EBITDA of HK$334 million (US$42.7 million), up 27.5%. And its nine satellite casinos generated GGR of HK$2.64 billion (US$338 million), up 54.7%, with an Adjusted Property EBITDA loss of HK$52 million (US$6.7 million). |
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Post by Blitz on May 10, 2024 7:37:37 GMT -5
Analysts not convinced SJM’s Grand Lisboa Palace can hit 5% market share target by Ben Blaschke Fri 10 May 2024 at 11:37 www.asgam.com/index.php/2024/05/10/analysts-not-convinced-sjms-grand-lisboa-palace-can-hit-5-market-share-target/ Macau concessionaire SJM Holdings released its 1Q24 financial results on Thursday, with revenue and EBITDA improvements largely in line with expectations. But one lingering concern remains the slow ramp of the company’s US$5 billion Cotai integrated resort Grand Lisboa Palace (GLP), with analysts becoming increasingly hesitant in touting its short-term growth prospects – particularly in regard to market share. In a Friday note, investment bank JP Morgan said it is “not (yet) convinced that GLP can garner its target share of 5% in the coming years,” and has revised its earnings estimates accordingly. Likewise, Vitaly Umansky of research house Seaport described the ramp-up of GLP as “tepid” at 2.0% market share in Q1, and noting that had it not been for high hold in VIP, share would likely have been 1.9%. He did, however, note comments from SJM management that market share may have approached 2.2% in April. “We expect the ramp up at GLP to remain slow and the long-term ROI on the GLP investment is likely to be suboptimal,” Umansky wrote. “We remain concerned about Grand Lisboa Palace’s slow pace of ramp-up in what has been a strong Macau recovery.” Among the issues highlighted by SJM management during their analyst call was a smaller than required sales force in its premium mass segment, with only 113 sales staff onboard. The company is hoping to get to 200 sales staff, Umansky observed, but faces a “very competitive market for such positions.” “We expect the build out of marketing and service capability for premium mass to take some time,” he said. “We would expect costs and player reinvestment to rise materially at GLP with the company’s attempt to build out its premium mass capabilities.” With SJM’s satellite business still unprofitable on the excess carrying costs from shuttered casinos alongside capex requirements and high leverage, SJM has also confirmed that dividends won’t resume until after 2025. |
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Post by Blitz on May 10, 2024 7:40:35 GMT -5
A slow ramp up here means more for LVS' venues... Seaport: Slow ramp up at Grand Lisboa Palace worrying sign for SJM Nelson Moura - May 10, 2024 agbrief.com/news/macau/10/05/2024/seaport-slow-ramp-up-at-grand-lisboa-palace-worrying-sign-for-sjm/SJM Holdings Limited’s (SJM) first quarter financial results showed slight improvements and met analyst expectations, but the slow ramp-up at Grand Lisboa Palace amidst a robust Macau recovery was worrying for the gaming operator, brokerage Seaport pointed out. In a recent dispatch, Seaport analyst Vitaly Umansky affirmed that SJM’s performance for the first quarter was largely in line with forecasts and primarily driven by a high hold in VIP segments at Grand Lisboa and GLP. ‘Despite efforts, the ramp-up at GLP has remained sluggish, with the latest quarter only achieving a 2.0 percent market share. This marginal improvement of 30 basis points quarter-on-quarter was mainly attributed to high hold in VIP segments,’ Umansky says. ‘Without this factor, GLP’s market share would likely have been at 1.9 percent. Management estimated that GLP’s April market share might have approached 2.2 percent’. The slow pace of ramp-up at GLP raised concerns about the long-term return on investment. While SJM’s first-quarter revenue increased by 8 percent quarter-on-quarter, reaching HK$6.9 billion ($883 million), and EBITDA rose by 24 percent quarter-on-quarter to HK$864 million ($110.5 million), these figures heavily relied on high VIP hold, with SJM reporting a net loss of HK$74 million ($9.5 million). The Seaport dispatch argues that the GLP ramp-up is suffering from inadequate sales staff for premium mass marketing efforts. SJM currently employs 113 sales staff, with plans to increase this number to 200. ‘We expect the build out of marketing and service capability for premium mass to take some time […], the ramp up at GLP to remain slow and the long-term ROI on the GLP investment is likely to be suboptimal’ the Seaport dispatch pointed out. Additionally, Umansky noted that SJM’s satellite business remains unprofitable due to ongoing excess costs from closed casinos. Recurring operational costs rose by 2.7 percent quarter-on-quarter, and it’s anticipated that costs and player reinvestment will increase notably at GLP as the company expands its premium mass capabilities. SJM’s capital expenditure for the year was also estimated to be between HK$1.5 billion ($191.9 million) to HK$1.6 billion ($204.7 million), with leverage remaining high and management indicating that dividend resumption is unlikely in the foreseeable future, possibly not until after 2025. |
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Post by Blitz on May 14, 2024 7:34:35 GMT -5
Daisy Ho: Lisboa Palace won’t achieve target market share of 5% this year by Pierce Chan Tue 14 May 2024 at 19:07 www.asgam.com/index.php/2024/05/14/daisy-ho-lisboa-palace-wont-achieve-target-market-share-of-5-this-year/As reported by Inside Asian Gaming, some investment bank analysts have recently expressed doubts about whether SJM’s Cotai integrated resort, Grand Lisboa Palace will be able to achieve its target of 5% Macau market share in the near-term. Speaking with media at an event on Tuesday, SJM Managing Director Daisy Ho agreed the property would not achieve its 5% target this year but said the company would do all it can to increase share in the quarters ahead. “I’m aware that some analysts have said that, but the fact is there was more than a 2% increase in the number of visitors to Lisboa Palace every day [in 1Q24],” Ho said. “In terms of gaming, we have been striving to increase our share, but after all, this gaming area is a very large venue, so it seems that the increase is not very big compared to the other areas.” Ho added, “Compared with other nearby gaming companies, Lisboa Palace’s casino is relatively new, so it’s not very fair to compare the ramp-up with other companies. But if you have the opportunity to enter our gaming area, the growth in foot traffic is huge. “To be honest, we won’t be able to achieve our target market share of 5% this year, but we will try to increase our share. “We should have new stores for promotion, plus catering and shopping malls, so we hope it can attract new people.” Investment bank JP Morgan stated in a report on Friday that it’s “not (yet) convinced that GLP can garner its target share of 5% in the coming years,” and has revised its earnings estimates accordingly. Vitaly Umansky of research house Seaport described the ramp-up of GLP as “tepid” at 2.0% market share in Q1. Ho also provided media with an update on peninsula property Grand Lisboa after informing the market last October that it would undergo a comprehensive renovation. “Progress is very good, and the project will start this year,” she said Tuesday, explaining that the first phase of upgrade works would focus on food and beverage, while the entire project will take around two years. Asked about SJM’s adoption of smart gaming table technology, Ho said, “smart gaming tables will be launched in our self-operated casinos by the end of this year.” |
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Post by Blitz on May 20, 2024 6:36:35 GMT -5
SJM’s Daisy Ho spends US$3.4mln on firm’s shares May 20, 2024 Newsdesk Latest News, Macau, Top of the deck www.ggrasia.com/sjms-daisy-ho-spends-us3-4mln-on-firms-shares/Macau casino operator SJM Holdings Ltd chairman Daisy Ho Chiu Fung (pictured in file photo) has spent about HKD26.5 million (US$3.39 million) this month to acquire an aggregate of nearly 8.83 million shares in the company. Ms Ho upped her long position in SJM Holdings to 0.46 percent, from an original 0.34 percent via five transactions between May 10 and May 17, according to the latest disclosure records in the Hong Kong bourse. The five transactions were done at an average price of circa HKD3.03 per share, according to the records. SJM Holdings released its first-quarter unaudited results on May 9. The firm reported a first-quarter loss attributable to shareholders of HKD74 million, compared with a loss of HKD869 million in the prior-year quarter. The company said it had achieved in the first quarter this year “robust results” that reflected its efforts in ramping up the group’s “non-rolling market” segments. The casino operator’s shares traded at HKD2.90 upon the closing of trading on May 10. At the close of trading on Monday (May 30), the stock price had risen by circa 10.7 percent to HKD3.21. |
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