SJM hit as losses widen to $674m

Staff reporter and Bloomberg

Macau casino operator SJM (0880) said its net loss expanded 58.2 percent year on year to HK$647 million in the first quarter.

Total net revenue fell 28.8 percent to HK$2.47 billion.

VIP gross gambling revenue was HK$485 million, down 59.4 percent year on year; mass market gross gambling revenue was HK$2.05 billion, a drop of 21.3 percent, and slot machine gross gambling revenue was HK$116 million, a drop of 17.3 percent.

Capital expenditure was HK$548 million, which was primarily used for construction in progress.

Construction of the Grand Lisboa Palace, SJM's integrated resort on Cotai, has been completed and the project is undergoing final inspections by local government authorities. SJM expects to open the resort in the first half.

Macau's gaming revenue rose less that analysts expected in April, the third straight month the casino business disappointed.

Gross gaming revenue rose 1,014 percent in April to 8.4 billion patacas (HK$8.16 billion), according to data from the Gaming Inspection & Coordination Bureau.

Revenue increased 1 percent from the previous month and is down 65 percent from April 2019.

Macau is still trying to lure mainland gamblers who've been discouraged by more procedures to obtain visas and virus tests required to cross the border.

Daily visitor arrivals in Macau continued to show an upward trend in April, rising to the highest level since the start of the pandemic, according to the Macau Government Tourism Office.