Border closures, lockdowns and impairment charges to blame for loss
Macau legacy gaming concessionaire SJM Holdings has released its FY22 financial results revealing a loss of HK$7.80 billion (€941.3 million) in 2022.
The loss is directly attributed to a 37.7% decline in gaming revenues as a result of multiple enforced closures and a substantial impairment charge on property costs and closures.
According to the report, revenues dropped to HK$6.46 billion (€779.4 million) including a 64.2% drop in VIP gross gaming revenue (GGR) to HK$486 million (€58.7 million). The reports also lists a 34.5% drop in mass market GGR to HK$5.55 billion (€669.5 million) and a drop of 22.5% slots GGR to HK$416 million (€50 million).
This resulted in an Adjusted EBITDA loss of HK$3.10 billion (€374 million) in 2022, up from the HK$1.58 billion (€190.3 million) loss reported in 2021.
Speaking in a statement released alongside the results, SJM Holdings Chairperson Daisy Ho said:
“2022 is also a milestone year, as we successfully tendered for a 10-year concession. With unwavering confidence in the future of Macau, we have committed to a MOP$14.0 billion (€1.68 billion) investment blueprint, out of which MOP$12 billion (€1.44 billion) has been earmarked for expanding international tourism and non-gaming tourism elements.
True to its purpose of protecting the unique heritage of Macau and innovating for the future, SJM will be combining our strategic tourism assets and network advantages to deliver an authentic and immersive Macau experience, to promote an ecosystem which supports all-rounded diversification across broad sectors of the economy, and to solidify Macau’s status as a world centre of tourism and leisure.”
The report also gives a breakdown of revenues at individual properties with the recently opened Grand Lisboa Palace in Cotai enjoying a 73% year-on-year increase in revenues to HK$346 million (€41.6 million). However, it must be noted that 2022 was the first full year of operations at the property. Meanwhile the IR Grand Lisboa reported a significant drop of 50.4% in GGR to HK$1.07 billion (€128.7 million).
