SJM (880) Q2 2025 earnings summary

Executive summary

• Net revenue rose 6.1% year-over-year to HK$14,639 million for the six months ended 30 June 2025, driven mainly by gaming revenue growth.

• Adjusted EBITDA declined 5.1% to HK$1,646 million, with margin down to 11.2% from 12.6% year-over-year.

• Loss attributable to owners increased to HK$182 million, compared to HK$162 million in the prior year period.

• No interim dividend declared for the period.

Financial highlights

• Net gaming revenue increased 5.7% year-over-year to HK$13,628 million; non-gaming revenue also increased.

• Rolling gross gaming revenue fell 6.6%, but non-rolling and electronic gaming revenues rose 7.1% and 26.2%, respectively.

• Grand Lisboa Palace Resort revenue rose 22.7% year-over-year to HK$3,626 million, but Adjusted Property EBITDA fell 57.3%.

• Grand Lisboa revenue was HK$3,760 million, with Adjusted Property EBITDA down 14.6%.

• Satellite casinos revenue grew 6.8% to HK$5,647 million.

Outlook and guidance

• Strategic expansion into Hengqin with acquisition of a mixed-use property for RMB724 million, to be converted into a 250-room hotel targeting mid-market demand, with completion targeted within 24 months.

• Planned cessation of operations at seven satellite casinos by end-2025, with redeployment of gaming assets to self-owned/core locations.

• Ongoing refurbishment and expansion at Grand Lisboa and Hotel Lisboa to consolidate leadership on the Macau Peninsula.

• Culinary and MICE facilities pipeline expected to drive future revenue and visitation.

• Focus on sports and cultural tourism to attract diverse visitor segments.