SJM (880) H1 2024 earnings summary

Executive summary

• Net revenue for the first half of 2024 rose 47.4% year-over-year to HK$13,801 million, driven by strong gaming performance.

• Adjusted EBITDA surged 275.9% to HK$1,734 million, with margin improving to 12.6% from 4.9% a year ago.

• Loss attributable to owners narrowed significantly to HK$162 million from HK$1,264 million in the prior year period.

• Market share in Macau's gross gaming revenue stood at 12.5%, with notable gains in mass market tables.

• No interim dividend declared for the period.

Financial highlights

• Net gaming revenue increased 48.3% year-over-year to HK$12,897 million.

• Grand Lisboa Palace Resort revenue more than doubled to HK$2,956 million, with Adjusted Property EBITDA turning positive at HK$192 million.

• Grand Lisboa revenue rose 58.1% to HK$3,800 million, with Adjusted Property EBITDA up 113.5% to HK$1,010 million.

• Satellite casino revenue grew 39.0% to HK$5,285 million, with Adjusted Property EBITDA improving to a loss of HK$29 million from a loss of HK$208 million.

• Rolling, non-rolling, and electronic game gross gaming revenues grew 65.4%, 49.7%, and 43.2% year-over-year, respectively.

Outlook and guidance

• Expansion of the Individual Visit Scheme to 59 Mainland Chinese cities is expected to boost visitation and overnight stays.

• Strategic acquisitions in dining and non-gaming aim to enhance mass market appeal and diversify revenue.

• Continued focus on destination marketing and non-gaming activities to attract high-value visitors.