New | SJM Holdings says third quarter profits slides 16.4pc, mass market revenue up 3.1pc

Macau casino operator SJM Holdings reported a 16.4 per cent year-on-year fall in third-quarter profit to HK$1.52 billion on Monday.

Adjusted earnings before interest, tax, depreciation and amortisation fell 14.3 per cent to HK$1.75 billion, missing expectations of HK$1.9 billion in a Bloomberg poll of six analysts.

VIP gaming revenue fell 23. 6 per cent year on year to HK$10.37 billion, while mass-market gaming revenue was HK$7.35 billion, up 3.1 per cent.

“In spite of well-publicised headwinds this year which have primarily affected the VIP segment of the Macau market, SJM has turned in a decent performance in the year-to-date period,” chief executive Ambrose So said. “In particular our mass-market business has continued its growth and overall our EBITDA margin has been stable.”

A large range of factors including the mainland’s slowing economy, anti-corruption campaign, tightened junket liquidity and political tension in Hong Kong have kept the big spenders away after years of double-digit growth. Roughly 76 per cent of Macau’s gaming revenue comes from VIPs and the premium mass market according to research firm JL Warren Capital.

Gross gaming revenue last month plunged a record 23.2 per cent year on year to 28.025 billion patacas, the fifth straight monthly decline and the largest on record since the city started collecting data in 2005.