The success of SJM Holdings’ Grand Lisboa Palace has returned the Macau operator to “renewed growth” in Q3, says chair Daisy Ho.
Yesterday (12 November), Macau gaming concessionaire SJM Holdings Ltd released third-quarter financials. The group posted third-quarter profit of HK$101 million (£10.190 million/€12.231 million/$13 million), compared to a HK$410 million loss in the same quarter last year.
Net gaming revenue came to HK$6,995 million. Adjusted EBITDA was up 83.2% year-on-year to HK$1.04 billion.
According to Macau Business, the group’s gross gaming revenue (GGR) share increased from 12.1% to 13.9% for the 2024 Q3.
SJM credited the growth to strong performance of the Grand Lisboa Palace Macau (GLP) in Cotai, which opened in 2021. GLP’s market share rose from 1.7% in the third quarter of 2023 to 2.6% for the same quarter this year. The company said the increase was spurred by growth in both the gaming and non-gaming sectors.
Ho lauds “unfolding potential”
A statement from Daisy Ho, SJM chairwoman and SJM Resorts managing director, acknowledged “the unfolding potential” of GLP. She said its ongoing “ramp-up underscores the group’s strong recovery from challenging times to renewed growth”.
Ho added: “In the coming quarters, SJM will launch a series of key visitation drivers to strategically enhance our offering.” The group will add new dining options and increased MICE capacity at GLP. It will also expand hotel capacity by 10% with an expansion at Grand Lisboa, which opened in 2007 on the Macau peninsula.
SJM “renaissance” continues
A June note from CBRE Equity Research called SJM “a renaissance story in the making”. In the memo, reported by Macao News, analysts John DeCree and Max Marsh noted that SJM is repositioning GLP “to better cater to base mass customers, increase visitation to the property and identify operating efficiencies.”
Mass market players are increasingly important to Macau’s player mix due to the shrinking VIP segment. In the third quarter, mass play represented a 76.5% share of total GGR.
GLP management “hopes to more than double Grand Lisboa Palace’s [GGR] market share to 5%” through mid-2026, the CBRE team added. “While management recognises this is an ambitious target, the company has an array of strategic initiatives aimed at improving market share.”
They include prudent capital investments, enhanced marketing and “improved connectivity across its entire asset base.”
