SJM Holdings has reported a dramatic 91% decline in profit for the third quarter of 2025, with earnings falling to HK$9 million (US$1.16 million) compared to HK$101 million (US$13 million) in the same period last year. The steep downturn was largely attributed to the gradual closure of satellite casinos and a shrinking market share in Macau’s increasingly competitive gaming sector.
Profit Hit by Satellite Casino Phaseout
The company’s net gaming revenue dropped 6.5% year-on-year to HK$6.54 billion (US$842 million), while total net revenue fell 6.2% to HK$7.03 billion (US$905 million). Adjusted EBITDA slipped 15% to HK$881 million (US$113 million), bringing the margin down to 12.5%, compared to 13.8% a year earlier.
Chairman and Executive Director Daisy Ho acknowledged the difficult quarter, citing “significant headwinds” from the ongoing transition. “We encountered significant headwinds in the third quarter, driven by the phased cessation of satellite casino operations and intensifying market competition,” she said in an the official release (pdf). Despite the turbulence, Ho noted that SJM had been “actively realigning our resources, both people and tables, to strengthen our core operations.”
She added that the company’s restructured framework is “steadily taking shape as planned, positioning SJM to enter 2026 on a stronger footing with a more integrated and resilient platform.”
SJM’s gross gaming revenue (GGR) for the quarter fell 4.7% to HK$7.14 billion (US$919 million), while its overall market share declined to 11.8%, down from 13.9% a year earlier and 12.9% in the previous quarter. The fall was largely due to weaker performance from satellite casinos, whose contribution to total gaming revenue dropped from 5.1% to 3.9%.
The company confirmed that several satellite casinos had ceased operations this year, including Grandview Casino, which closed in July, as well as Grand Emperor and Legend Palace during the current quarter. By the end of September 2025, SJM operated eight satellite casinos, down from nine the previous year.
Despite the contraction, Ho described the wind-down as “inevitable” and said it represented a critical step toward long-term stability. The company has been redirecting assets and staff to key properties such as Grand Lisboa and Grand Lisboa Palace, aiming to consolidate performance across its core operations.
Property Performance and Strategic Shifts
At Grand Lisboa Palace Resort, total revenue grew 7.4% year-on-year to HK$1.91 billion (US$246 million), supported by an 11% increase in GGR to HK$1.58 billion (US$203 million). However, adjusted property EBITDA declined 32.7% to HK$111 million (US$14.3 million), with hotel occupancy easing to 94.9% from 98.9% the previous year.
Meanwhile, the Grand Lisboa property on the Macau Peninsula saw revenue remain largely flat at HK$2 billion (US$257 million), with GGR down 1.8% to HK$1.91 billion (US$246 million). Adjusted property EBITDA dropped 13.6% to HK$471 million (US$61 million).
SJM’s other self-promoted casinos—including Jai Alai Hotel, Kam Pek Market, and Sofitel at Ponte 16—collectively generated HK$1.38 billion (US$178 million) in revenue, down 5.5% year-on-year, with adjusted property EBITDA falling 12.5% to HK$300 million (US$38.6 million).
Despite the declines, SJM emphasized continued progress in executing its long-term strategy. The company recently acquired HK$529 million (US$68 million) worth of gaming areas at Hotel Lisboa from its parent firm STDM, with plans to relocate tables and slot machines from closing satellite properties. The move aims to “enhance synergies across the Lisboa cluster” and strengthen SJM’s integrated resort portfolio.
For the first nine months of 2025, SJM’s total net revenue rose slightly by 1.8% to HK$21.67 billion (US$2.79 billion), while net gaming revenue increased 1.4% to HK$20.17 billion (US$2.60 billion). However, the company still posted a net loss of HK$173 million (US$22.3 million), widening from a HK$61 million (US$7.85 million) loss in the same period of 2024.
As part of its realignment, SJM completed the CNY724 million (US$93.2 million) purchase of office buildings near Hengqin Port, which it plans to convert into a mid-market hotel catering to cross-border travelers. The company held HK$3.45 billion (US$444 million) in cash and equivalents and HK$27.31 billion (US$3.51 billion) in debt as of September 30.
While the short-term financial picture remains challenging, Daisy Ho underscored SJM’s commitment to operational efficiency and long-term sustainability. She affirmed that the company’s restructuring efforts will enable it to “enter 2026 on a stronger footing” with a more integrated business model focused on high-performing assets.
