SJM revenue soars as its Macau market share falls
SJM Holdings, a unit of Macau casino billionaire Stanley Ho Hung-sun's former Macau gaming monopoly, said revenue increased 8.5 per cent in the first quarter over the same period last year to a record HK$19.7 billion.
Revenue came to HK$19.84 billion including hotel, catering and related services, while revenue from the non-gaming sector was almost negligible. However, the HK$154 million income from the sector represents a 18.5 per cent rise year on year.
SJM's net profit in the first quarter rose by 21.7 per cent year on year to HK$1.7 billion.
The company's flagship Casino Grand Lisboa increased its quarterly gaming revenue 25.9 per cent over the first quarter last year to HK$6.7 billion.
Although revenue and profit hit a record high, the company's market share is decreasing. SJM has no strong presence in the Cotai district, which is attracting more and more deep-pocketed tourists from the mainland. Grand Lisboa is located on Macau's peninsular.
SJM said its gaming revenue accounted for 27.3 per cent of Macau's casino gaming market during the quarter, compared with 31.9 per cent in the first quarter of 2011.
Citi said SJM remained the biggest player in the world's largest gaming hub with 25.3 per cent of the market in April by gross gaming revenue, down 1.2 percentage points from March.
Galaxy Entertainment followed with 20.5 per cent, and Sands China with 17.8 per cent after beefing up its operations on Cotai with the opening of a new integrated resort.
Melco Crown Entertainment has 13.7 per cent, while Wynn Macau and MGM China, both with a single resort on the Macau peninsula, respectively had 12.9 per cent and 9.9 per cent of the market in April.