SJM first-quarter profit rises 12pct on higher VIP spending

2013-5-7

From：Macau Daily Times

SJM Holdings posted a 12 percent increase in first-quarter profit as high-stakes gamblers spent more at its 20 casinos in Macau.
Net income rose to HKD1.92 billion (USD247 million) from HKD1.71 billion a year earlier, according to a statement to the Hong Kong Stock Exchange. Gambling revenue climbed 10 percent to HKD21.7 billion. Adjusted earnings before interest, tax, depreciation and amortization, or adjusted Ebitda, rose 11 percent to HKD2.1 billion.
SJM is benefiting as new attractions, more hotel rooms and an improved rail connection draw more mainland Chinese visitors to Macau. Deutsche Bank AG estimated casino revenue will rise 17 percent to USD44.5 billion this year.
SJM’s gambling revenue from VIPs, or high rollers, rose 13 percent to HKD15.1 billion for the quarter ended in March. Mass market revenue climbed 4.7 percent to HKD5.9 billion.
Founded by Hong Kong tycoon Stanley Ho, SJM, faces rising competition as rivals including Sands China Ltd. and Galaxy Entertainment Group Ltd. expand. They have been adding new attractions such as shopping malls and entertainment shows in their resorts on Macau’s increasingly popular Cotai strip to woo gamblers.
SJM, the former casino monopoly, runs 20 out of the 35 casinos in Macau. None of its casinos are located on the Cotai strip. It won a land grant in October to build its first casino resort in Cotai strip.
Shares of SJM climbed 2.5 percent to HKD19.76 in Hong Kong before the earnings announcement. The benchmark Hang Seng Index gained 0.99 percent.

Copyright@Macau Daily Times