SJM Holdings’ Profit Plunges 91% to HK$9M as Satellite Casinos Exit Macau

SJM Holdings reported a staggering 91% year-on-year profit decline in Q3 2025, with net income plummeting to HK$9 million (US$1.16 million) from HK$101 million (US$13 million) in 2024. The Macau casino operator attributed the sharp decline to satellite casino closures and eroding market share in the city’s competitive landscape.

Net gaming fell 6.5% to HK$6.54 billion (US$842 million), while total revenue dipped 6.2% to HK$7.03 billion (US$905 million). Adjusted EBITDA dropped 15% to HK$881 million (US$113 million), shrinking margins from 13.8% to 12.5%.

Recovery Plans and Market Share Erosion

Chairman Daisy Ho described facing “significant headwinds” during the sector’s transition, stating the company is actively realigning resources to bolster core operations. She emphasized SJM’s restructuring blueprint is underway, noting work is “steadily taking shape as planned, positioning SJM to enter 2026 on a stronger footing with a more integrated and resilient platform.”

SJM’s GGR slid 4.7% YoY to HK$7.14 billion (US$919 million) in Q3 2025. Its Macau market share fell to 11.8%, down from 13.9% in 2024 and 12.9% in Q2 2025. Satellite casino performance deteriorated sharply, contributing just 3.9% of total gaming revenue, down from 5.1% previously.

Chairman Ho characterized the downsizing as an “inevitable” strategic pivot, stating it lays the groundwork for sustainable growth. Resources are being reallocated to flagship properties like Grand Lisboa and Grand Lisboa Palace, as part of efforts to combine performance across main operations as it recalibrates to the Macau market.

Flagship Properties Show Strain

Grand Lisboa Palace Resort delivered mixed Q3 results with total revenue rising 7.4% to HK$1.91 billion (US$246 million), driven by an 11% GGR jump to HK$158 billion (US$203 million). However, adjusted property EBITDA plunged 32.7% to HK$111 million as hotel occupancy dropped to 94.9% from 98.9%.

Flagship property Grand Lisboa reported stagnant revenue at HK$2 billion (US$257 million), with gaming revenue dipping 1.8 % to HK$1.91 billion (US$246 million). Its adjusted EBITDA fell 13.6% to HK$61 million (US$7.85 million). SJM’s other venues, including Jai Alai Hotel and Pote 16’s Sofitel, collectively generated HK$1.38 billion (US$178 million) in revenue, a 5.5% decrease. Meanwhile, adjusted EBITDA declined 12.5% to HK$300 million (US$38.6 million).

Buffering Losses

SJM highlighted strategic advancements despite financial challenges, securing HK$529 million (US$68 million) in gaming assets at Hotel Lisboa from parent company STDM. The acquisition facilitates the redistribution of tables and machines from closing satellite casinos to reinforce its integrated resort approach.

Year-to-date figures through September 2025 show marginal gains, with total net revenue up 1.8% to HK$21.67 billion (US$2.79 billion) and gaming revenue rising 1.4% to HK$20.16 billion (US$2.60 billion).