GAMING: SJM first-half profit tops estimates on higher gambler spending

2013-8-15

From：Macau Daily Times

SJM Holdings Ltd reported a 12 percent increase in second-quarter earnings, beating analyst estimates, as mainland Chinese gamblers spent more at its casinos.
Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to HKD2.14 billion in the three months to June, according to Bloomberg calculations based on its statement to Hong Kong’s stock exchange. That’s higher than an average estimate of HKD1.99 billion from seven analysts compiled by Bloomberg.
SJM joins MGM China Holdings Ltd. and Melco Crown Entertainment Ltd. in reporting higher profits in Macau. The operators are benefiting as new attractions, added hotel rooms and an improved rail connection draw more mainland Chinese visitors to the world’s biggest gambling center.
Net income climbed to HKD1.91 billion during the second quarter from HKD1.7 billion a year earlier, according to Bloomberg calculations.
Asia’s biggest casino company market share in the first half dropped to 25.3 percent, according to a statement to Hong Kong’s stock exchange today. That’s a decline from the 26.7 percent share in 2012 as SJM competitors opened new properties in Cotai.
SJM’s gambling revenue from VIPs, or high rollers rose 10 percent to HKD29 billion in the first half, while mass market revenue climbed 4 percent to HKD12.2 billion, it said. The company said it will pay an interim dividend of 20 Hong Kong cents a share, double last year’s payout.
SJM won a land grant in October to build its first casino resort in Cotai.
Macau raked in a record USD38 billion gross gaming revenue last year, with two-thirds of that coming from the high-stake gamblers, or so-called VIPs. Deutsche Bank AG has estimated that the city’s casino revenue will rise 17 percent to USD44.5 billion this year. Bloomberg

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