SJM skips dividend amid $1.4b loss

Casino and hotel operator SJM (0880) recorded a net loss of HK$1.41 billion during the first half this year with an over 70 percent drop in revenue, as the sector was hard hit by the Covid-19 pandemic.

SJM said that this was in comparison to a net profit of HK$1.68 billion in the same period a year ago, and the company declared no interim dividend.

"First-half results of the group were severely impacted by the Covid-19 outbreak, which led to the closure of Macau casinos for 15 days in February, as well as ongoing restrictions on entry from the mainland, Hong Kong and other locations, curtailment of transportation channels and quarantine requirements," said the company. Its net gaming revenue fell by 74.4 percent from a year before to HK$4.27 billion.

The loss before interest, taxes, depreciation, and amortization totaled HK$984 million, compared with corresponding earnings of HK$2.08 billion.

The occupancy rate of Hotel Grand Lisboa fell by 75.9 percent from the year-earlier period to 18.9 percent while the average daily room rate increased during the period by 9.5 percent to HK$1,628.

The company also expects the Grand Lisboa Palace to open by the year's end following the completion of construction work in late 2019.

SJM said it maintained a strong financial position with cash, bank balances and pledged bank deposits of HK$7,511 million as of the end of June.

Shares of SJM closed 2.08 percent higher at HK$8.33 yesterday.