SJM Holdings Widens First-Half Loss by 61.7 Percent Under Direct Management Model

SJM Holdings Ltd recorded a loss attributable to owners of HKD294.7 million (US$37.6 million) in the first half of 2026. The figure widened 61.7 percent from the prior year. The Hong Kong-listed Macau casino operator declared no interim dividend, according to a filing reported by GGRAsia.

Adjusted EBITDA rose 3.3 percent to HKD1.70 billion. The adjusted EBITDA margin expanded 3.5 percentage points to 14.7 percent. Aggregate net revenue fell 20.8 percent to HKD11.59 billion, while gross gaming revenue declined 18.5 percent to just above HKD12.08 billion. The company’s Macau GGR market share dropped to 9.8 percent from 12.9 percent.

This marked the first full interim reporting period under a direct-management model after satellite casinos closed by the end of 2025. The prior-year period included satellite contributions, so the periods are not directly comparable.

Mixed Property Performance

The group’s “other properties” generated GGR of HKD4.93 billion, up 85.7 percent year-on-year, with adjusted property EBITDA rising 44.2 percent to HKD939 million. Grand Lisboa complex GGR increased 7.1 percent to HKD3.84 billion, while adjusted EBITDA stayed flat at HKD860 million.

Grand Lisboa Palace produced GGR of HKD3.32 billion, up 12.9 percent, but adjusted EBITDA fell to HKD22 million from HKD82 million. The drop reflected restructuring costs from satellite closures, elevated customer reinvestment, and market-wide cost inflation. Rolling volume at the property rose 16.9 percent to nearly HKD29.60 billion.

Daisy Ho Chiu Fung, chairman of SJM Holdings, said the first half marked completion of a “significant structural transition”. “This has strengthened our control over customer experience, cost structure and earnings quality across our properties, with the benefits already reflected in our operating performance and margin expansion,” she added.

Credit Concerns and Efficiency Drive

Moody’s Ratings and Fitch Ratings downgraded SJM Holdings’ credit ratings in May, citing elevated leverage and the pace of earnings recovery. As of June 30 the company held nearly HKD3.49 billion in cash, bank balances and deposits against HKD30.22 billion in debt.

SJM Holdings has implemented a group-wide cost-management programme to lift productivity and operating leverage. The operator plans to refine property positioning and customer loyalty initiatives for the balance of 2026. The direct-management shift delivers efficiency gains yet exposes near-term cost pressures that have widened losses and drawn rating scrutiny.

Reporting: GGRAsia

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