Macau casino operator SJM Holdings Ltd slipped to a first-quarter net loss amounting to HKD62 million (US$7.9 million), versus a net profit of HKD31 million a year earlier. The information was in unaudited highlights filed to the Hong Kong Stock Exchange.
The three months to March 31 marked the first quarter the company had operated without satellite casinos in its portfolio.
The casino operator’s first-quarter gross gaming revenue (GGR) was just under HKD6.14 billion, down 18.8 percent from the prior-year quarter, according to Thursday’s filing.
SJM Holdings said in a separate press release that its group-wide share of Macau GGR was 9.6 percent in the first quarter, versus 13.5 percent in the prior-year period.
Vitaly Umansky, senior analyst at Seaport Research Partners, suggested that SJM Holdings’ Macau market share had gone down in April, even compared to the first quarter.
He wrote in a Thursday note: “We expect SJM share to remain in the circa 10-percent range this year. April was off to a rough start, as we believe SJM market share dropped from the first quarter.”
The analyst added regarding the three months to March 31: “Compared to first-quarter 2025, SJM lost share at both Grand Lisboa and Grand Lisboa Palace.”
He noted, referring to the group’s remaining properties: “ While the self-promoted casinos gained circa 150 basis points [of share] year-on-year, the satellites – which are now closed – had 5.1 percent share in the prior-year quarter.”
Nonetheless, SJM Holdings claimed a 2.7 percentage point gain on its margin for adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA).
Daisy Ho Chiu Fung, chairman, was cited as saying in the press release accompanying the results: “As we transitioned away from the satellite model, the resulting increase in our adjusted EBITDA margin reflects a more streamlined and synergistic operating structure.”
She added: “We will remain focused on completing our property enhancements and ensure a superior guest experience in order to create long-term value for our shareholders.”
The company further noted in commentary: “Despite the [gaming] revenue contraction, [groupwide] adjusted EBITDA remained resilient at HKD917 million.”
First-quarter group-wide adjusted EBITDA were down 4.3 percent year-on-year. The adjusted EBITDA margin in the period was 15.5 percent, versus 12.8 percent in first-quarter 2025.
Property performance
The gaming properties that contributed to SJM Holdings’ earnings in the latest period were Grand Lisboa Palace in Cotai; as well as Macau-peninsula properties Grand Lisboa (pictured in a file photo); Casino Lisboa; Casino L’Arc Macau and Casino Oceanus at Jai Alai.
During 2025, SJM Holdings announced a HKD1.75-billion deal for the acquisition of Casino L’Arc Macau – formerly a satellite gaming venue – and its associated hotel. The complex became a company-managed venue with effect from December 30.
Grand Lisboa Palace and Grand Lisboa saw year-on-year gains in first-quarter GGR, though their respective adjusted EBITDA declined from the prior-year period.
Grand Lisboa Palace’s first-quarter GGR rose 11.7 percent year-on-year to HKD1.75 billion. Despite the top line improvement, the Cotai complex’s adjusted property EBITDA were down 61.1 percent year-on-year to HKD58 million, mainly due to “higher operating costs”, SJM Holdings said.
Grand Lisboa’s first-quarter GGR grew 6.7 percent year-on-year to HKD1.92 billion, though adjusted EBITDA of the property were down 3.4 percent year-on-year to HKD425 million.
The aggregate GGR from Casino Lisboa, Casino L’Arc Macau and Casino Oceanus at Jai Alai reached HKD2.47 billion, up 83.6 percent year-on-year. “Such increase was mainly attributable to the contribution from the expanded gaming area at Casino Lisboa and the contribution from Casino L’Arc Macau,” said SJM Holdings.
The expanded gaming area encompasses a zone branded Crystal Palace, which started operations in November 2025.
SJM Holdings said previously that a second phase for Crystal Palace has been scheduled for opening by mid-2026, which would be aligned with the introduction of more than 400 newly-refurbished rooms at Hotel Lisboa.
As at March-end, SJM Holdings held HKD3.4 billion in cash, bank balances and deposits, and had HKD30.2 billion of debt.
Jeffrey Kiang, analyst at brokerage CLSA Ltd, said in a Thursday memo, citing management commentary, and referring to the recent Labour Day holidays: “SJM saw an 8 percent year-on-year decline in gaming revenue during the May Golden Week on discontinued satellite casinos, though the total number of gaming tables was unchanged.”
He added: “Though SJM commits to cost discipline, ‘commissions and incentives’ as a percentage of GGR spiked from 8.0 percent in first-quarter 2025… 9.3 percent in fourth-quarter 2025… to 12.6 percent in first-quarter 2026.”
(Updated 9.03pm, May 8)
