Covid-19 breaks the bank for SJM

Macau casino operator SJM (0880) recorded a net loss of HK$409 million in the first quarter, compared to a net profit of HK$850 million in the same period last year.

Adjusted EBITDA declined to a negative HK$200 million in the first quarter, compared to HK$1.07 billion in the same period last year.

Total net revenue plunged 59.8 percent to HK$3.48 billion and net gaming revenue dived 59.8 percent year-on-year to HK$3.41 billion.

Mass market gross gaming revenue was down 57.9 percent year-on-year to HK$2.61 billion in the first three months, with VIP gross gaming revenue 69.6 percent to HK$1.2 billion and slot machine gross gaming revenue 51.6 percent to HK$141 million.

SJM said its first-quarter results were severely impacted by Covid-19 and its related measures such as casino closures and entry restrictions.

Macau said it expects a drop of 56 percent in annual gross gaming revenue this year to 130 billion patacas (HK$126.2 billion), down from 260 billion patacas forecast last year.