Total revenue for the first six months of 2023 in the finance sector increased significantly by 126.7% to HK$9.36bn (£934.2m/€1.09bn) compared to H1 2022 due to the easing of Covid-19 restrictions in Macau.
Breaking it down by property, revenue at Grand Lisboa Palace, which had a partial opening in 2021, reached HK$1.43bn. This consisted of HK$1.03bn in gross gaming revenue (GGR) and HK$396m in non-gaming revenue. Grand Lisboa Palace showed remarkable growth compared to H1 2022, with revenue increasing by HK$1.0bn, as it continued to expand its market presence through the grand opening of its new hotel tower, The Karl Lagerfeld, and the opening of selected hotel rooms at the Palazzo Versace Macau Hotel tower.
Revenue at Grand Lisboa, a separate entity from Grand Lisboa Palace, was HK$2.40bn, where the majority of it came from GGR at HK$2.26bn. Non-gaming revenue at the property was HK$137m. This marks an increase of HK$1.62bn compared to the previous year.
Revenue from other self-promoted casinos, including Jai Alai Hotel and Sofitel at Ponte 16, amounted to HK$2.20bn, a notable increase of 200.3%. Additionally, SJM’s satellite casinos generated HK$3.80bn in casino revenue during the first half of the year.
Net gaming revenue for the six-month period totaled HK$8.69bn, exhibiting a significant improvement of 128.2%. However, the company did face a total loss of HK$1.19bn, albeit an improvement of HK$1.56bn compared to the previous year. This loss was mainly attributed to special gaming tax payments of HK$3.67bn, coupled with operating and administrative expenses amounting to HK$4.32bn, which included a substantial increase in marketing and promotional expenses reaching HK$1.56bn.
Macau, as a whole, is showing signs of recovery from the Covid-19 pandemic. According to SJM, visitor arrivals have experienced a robust recovery, expanding by 236.1% year-on-year. In July, just after the end of the quarter, Macau’s gross gaming revenue reached a post-pandemic peak of MOP16.66bn.
As of November 2022, SJM became one of the concessionaires selected by the Macau government to provide gambling services until 31 December 2032. As part of the deal, SJM committed MOP14.03bn to Macau over the duration of the concession, with MOP12.0bn allocated for non-gaming ventures. However, SJM experienced a change in leadership during the first half of 2023, with the departure of Dr. So Shu Fai from the role of CEO, executive director, and vice-chairman. The company is currently led by executive director Daisy Ho, who expressed optimism for the future as Macau steadily recovers from the pandemic.
