SJM loss widens to $2.7b

Staff reporter

Macau casino operator SJM (0880) widened its net loss by 11 percent to HK$2.71 billion for the first nine months this year, with the third quarter's loss expanding by 21 percent.

The company said the loss was due to the absorption of pre-opening costs and depreciation of Grand Lisboa Palace, SJM's integrated resort on Cotai, and interest expenses.

Its net gaming revenue jumped 43.8 percent year-on-year to HK$7.35 billion from January to September and during the period, it recorded HK$970 million in negative adjusted EBITDA, down from HK$1.76 billion a year ago.

The Grand Lisboa Palace, which opened to the public on July 30 this year, posted HK$128 million in gross revenue in the third quarter, including HK$69 million in gross gaming revenue and HK$59 million in non-gaming revenue. As of September this year, the total investment cost for the Grand Lisboa Palace was HK$37.8 billion, of which HK$860 million was pre-opening costs.

Another gaming operator MGM China (2282) reported a net revenue of US$289 million (HK$2.25 billion) in the third quarter, a 517 percent rise compared to the same period in 2020 but a 61 percent decline to the third quarter of 2019.