• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

SJM Macau 2Q share gain likely from local play: Bernstein

Jul 29, 2020 Newsdesk Latest News, Macau, Top of the deck  


SJM Macau 2Q share gain likely from local play: Bernstein

Macau casino operator SJM Holdings Ltd saw its share of Macau casino gross gaming revenue (GGR) rise to 30.3 percent in the second quarter, more than double the level of the first quarter, said brokerage Sanford C. Bernstein in a Tuesday note.

The casino firm issues its results on a half-year basis, in line with Hong Kong Stock Exchange requirements. Its latest report was on Tuesday, when it swung to a first-half loss, blaming the disruption wrought by Covid-19.

For the first six months of 2020, the group nonetheless reported a 0.9 percentage point increase year-on-year in GGR market share, to 15 percent, it said.

SJM Holdings’ annual GGR market share relative to Macau’s other five casino operators had dwindled annually from a leading 29 percent in 2011, according to the firm’s annual reports filed with the Hong Kong bourse.

SJM Holdings’ overall GGR market share “surged to 30.3 percent in the second quarter, up from 13.3 percent in the first quarter this year,” said Sanford Bernstein analysts Vitaly Umansky, Kelsey Zhu and Tianjiao Yu.

They added: “This is largely attributed to the local mass business on the [Macau] peninsula in which SJM has a stronger position than peers. This share gain is an anomaly of the current market.”

The analysts were referring to the fact most of the casino group’s venues are in downtown Macau, and that there are currently low levels of inbound tourism to the city, coinciding with Covid-19. The decrease in tourism has contributed to a sharp year-on-year decline in GGR in Macau.

SJM Holdings’ first-half, mass-market table gaming revenue accounted for approximately 22 percent of total mass-market table gaming revenue in Macau, compared to 18.2 percent in the corresponding period last year, the firm said on Tuesday, citing a comparison based on local regulator data for the market.

SJM Holdings is yet to open a venue in the Cotai district, but is working to do so soon.

Ambrose So Shu Fai, the group’s vice-chairman and chief executive, said in comments contained in a press release issued the same day as the first-half results, that SJM Holdings was “working closely” with the Macau government to complete the procedures to open its first large-scale gaming resort on Cotai, the HKD39-billion Grand Lisboa Palace.

The release said that “subject to obtaining the necessary operating permits, the project is expected to open by the end of 2020”.

Sanford Bernstein said in its Tuesday note: “We are sceptical the property will open (at least in any meaningful way) until early next year.”

The brokerage stated that “considerable hiring and inspections… need to be done” for the property.

The institution added: “Final timing of opening and phasing will depend on various factors, including Covid-19 being under control, the further relaxation of border restrictions, IVS visa resumption, and the rebound of actual demand.”

John DeCree, an analyst at Union Gaming Securities LLC, said in some Tuesday commentary on Grand Lisboa Palace, after SJM Holdings’ first-half results: “We do not include any meaningful revenue in our model until second-quarter 2021, which provides some conservatism in the event of a partial opening or slow initial ramp.”


  • tweet
Related articles
  • Casino op SJM 2024 EBITDA to hit US$510mln: Moody’s
    Casino op SJM 2024 EBITDA to hit...

    Mar 22, 2023  

  • SJM Holdings to sponsor Macao Golf Open for next 3 years
    SJM Holdings to sponsor Macao Golf Open...

    Mar 21, 2023  

More news
  • Macau March GGR up 247pct y-o-y, to US$1.6bln: govt
    Macau March GGR up 247pct y-o-y, to...

    Apr 01, 2023  

  • Some Macau hotels say no rooms vacant 3 days of Easter
    Some Macau hotels say no rooms vacant 3...

    Mar 31, 2023  


Latest News

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Apr 01, 2023  

Macau’s casino gross gaming revenue (GGR) was up 246.9 percent year-on-year in March, to just under MOP12.74 billion (US$1.58 billion). The March tally was up 23.4 percent month-on-month,...
Read More
Some Macau hotels say no rooms vacant 3 days of Easter

Some Macau hotels say no rooms vacant 3 days of Easter

Mar 31, 2023  

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Mar 31, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Efforts have pivoted to the construction of the hotel tower, with plans to launch a soft opening before the end of 2024 and a grand opening in 2025”

Casino investor LET Group

On the development of a casino hotel in Manila, the Philippine capital



Most Popular

  • Some Macau hotels say no rooms vacant 3 days of EasterSome Macau hotels say no rooms vacant 3 days of Easter March 31, 2023
  • Macau 2023 GGR at 45pct of pre-Covid level: Moody’sMacau 2023 GGR at 45pct of pre-Covid level: Moody’s March 31, 2023
  • Macau March GGR up 247pct y-o-y, to US$1.6bln: govtMacau March GGR up 247pct y-o-y, to US$1.6bln: govt April 1, 2023
  • LET Group narrows year loss, Manila site open end 2024LET Group narrows year loss, Manila site open end 2024 March 31, 2023
  • Japan govt delays IR decision due to local elections: reportJapan govt delays IR decision due to local elections: report March 30, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us