SJM posts HK$0.40 b Q3 loss as net gaming revenue falls 27%; margin ticks up on cost discipline

Bulletin Express11-05

SJM Holdings Limited (SJM) reported a HK$0.40 billion loss attributable to shareholders for the three months ended 30 September 2026, reversing a HK$0.01 billion profit in the prior-year period as softer market volumes and the cessation of satellite casino operations cut into revenue.

Group net gaming revenue came in at HK$4.76 billion, down 27.2% year on year, driving total net revenue 24.8% lower to HK$5.29 billion. Adjusted EBITDA slipped 20.0% to HK$0.71 billion, yet the EBITDA margin improved to 13.3% from 12.5%, signalling progress on cost containment. For the first nine months, net gaming revenue fell 24.0% to HK$15.32 billion and Adjusted EBITDA eased 4.8% to HK$2.41 billion; margin expanded 2.6 percentage points to 14.3%.

Property performance diverged. Grand Lisboa Palace Resort Macau’s third-quarter gross revenue declined 10.3% to HK$1.71 billion and swung to an Adjusted Property EBITDA loss of HK$0.04 billion, versus a HK$0.11 billion profit a year earlier. By contrast, Grand Lisboa Macau generated HK$1.81 billion in revenue (-9.7% YoY) and HK$0.36 billion in EBITDA (-24.2% YoY). Revenues from “Other Properties”–including Casino Lisboa, Oceanus at Jai Alai and the newly self-promoted Casino L’Arc Macau–surged 77.4% to HK$2.45 billion, lifting segment EBITDA 46.0% to HK$0.44 billion.

At the operational level, group-wide gross gaming revenue contracted 23.9% to HK$5.44 billion, with rolling, non-rolling and electronic game volumes each declining between 23% and 29% year on year. Commission and incentive costs climbed 12.4% to HK$0.68 billion, further pressuring net gaming income.

Liquidity remains adequate: cash, bank and pledged deposits totaled HK$3.14 billion at 30 September 2026 against HK$30.00 billion of debt. Of the HK$11.50 billion revolving credit line, HK$1.95 billion was undrawn. Capital expenditure reached HK$0.24 billion in the quarter, primarily for fixtures and leasehold improvements.

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