SJM Holdings Posts 2Q EBITDA Rise as Opex Efficiency Remains Key Focus

Macau casino operator SJM Holdings Ltd recorded adjusted EBITDA of HKD783 million (US$99.9 million) for the 3 months ended June 30, representing a 13.9% increase from the prior-year period.

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However, CBRE Capital Advisors Inc said the growth was entirely linked to an easier hold comparison. After adjusting for hold, the company’s adjusted EBITDA would have declined by 2.1% year-on-year, according to analysts John DeCree and Max Marsh.

The analysts’ assessment came in a Wednesday note from CBRE, which also highlighted changes in SJM Holdings’ casino gross gaming revenue performance, operating expenses, and property-level results.

Market Share Improves In Macau

SJM Holdings’ share of the Macau casino GGR market from its self-promoted operations increased by 2.5 percentage points year-on-year to 10.0% in the second quarter. CBRE said the improvement was partly supported by a favourable change in the VIP hold rate.

The operator also gained 0.4 percentage points of market share sequentially. CBRE attributed the progress to management’s targeted customer-experience and product enhancements.

SJM Holdings’ market share improved in every month of the second quarter and reached 10.8% in June. That was the company’s highest monthly total since it closed its satellite casino operations in October 2025.

Labour Costs Pressure Margins

Improving operating-expense efficiency remains a key priority for SJM Holdings. CBRE said elevated labour costs following the closure of the satellite casinos continued to weigh on the company’s margins.

The group has reduced its staff count by 10% over the past 7 months and introduced other initiatives intended to improve margins by the end of the year. CBRE said the measures, together with a controlled reinvestment strategy, were beginning to support cash-flow generation.

Management plans to direct the resulting proceeds towards reducing leverage. SJM Holdings had previously reported that it implemented a group-wide cost-management and opex-efficiency programme to improve productivity and operating leverage.

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First-Half Performance Mixed

For the 1H, SJM Holdings reported adjusted EBITDA of HKD1.70 billion, up 3.3% year-on-year. Aggregate net revenue, however, fell 20.8% during the period.

The results reflect the company’s focus on managing costs while dealing with weaker aggregate revenue. CBRE’s assessment of the second quarter similarly placed attention on the effect of hold comparisons and the need for further opex improvements.

Grand Lisboa Palace Still Developing

CBRE said Grand Lisboa Palace, SJM Holdings’ Cotai resort, was still developing its position. GGR at the property rose 14.4% year-on-year in the second quarter, driven entirely by VIP activity.

Rolling-chip volume increased by 9.2%, while the VIP hold rate improved by 1.3 percentage points. SJM Holdings is also carrying out a substantial renovation of the resort’s mass gaming floor.

While the project will be phased to minimize disruption, CBRE projects that the project will still be disruptive to a certain degree since it will be completed in 1H 2027. The analysts noted that the property required a bigger market share in the mass market segment to yield more margins and cash flow.

Grand Lisboa Supports Cash Flow

At Grand Lisboa, EBITDA was up 2.9% year-on-year to HKD434 million on the back of a 7.5% rise in GGR. CBRE called the property a solid source of cash flow for SJM Holdings.

The company’s second-quarter performance showed gains in market share and selected property results, while the underlying EBITDA comparison remained weaker after normalising for hold. Cost controls, staff reductions, and the Grand Lisboa Palace renovation will remain important factors in SJM Holdings’ operating performance.

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Source: GGR Asia